With the rapid change in workforce dynamics and contingent workers now playing a pivotal role in organisational growth and prosperity, CXC simplifies how organisations and contingent workers connect compliantly and efficiently.
Established in Australia in 1992 to provide contractor vetting, compliance and payroll, the contingent workforce market has continued to be our core, with services now delivered in over 50 countries internationally by local specialists. Our corporate offering has evolved over the past decade due to increasing market complexity, regulation, technology and evolving client demand.
CXC is now able to be an extension of your HR and Procurement function, taking responsibility for your entire contingent workforce. CXC’s difference is that, while managing visibility, cost and control, we also enable your talent first approach – including access to new and known talent and improving the engagement and performance of the workforce.
Contact us today to find out how you can improve the performance, efficiency and effectiveness of your future workforce.
Thirty years ago, CXC opened its doors in Sydney, Australia. Over the last three decades, the company has rapidly grown in size and scale, becoming the world’s foremost provider of contingent workforce solutions.
Today, we operate from 30 offices, providing services to over 50 countries, payrolling well over 20,000 contractors per year.
From humble beginnings
Before CXC existed, global IT contractor Dave Thomas was developing software for a UK recruitment company. When asked by the General Manager what he thought of a contractor solution, Dave said:
“It’s not legal, and as the only Australian director you could end up in jail.”
At the time, several management companies were circumventing Australian tax by paying foreign contractors out of the country in places like the Isle of Man, Crete and Delaware. As a contractor himself, this didn’t sit right with Dave.
This recruitment company asked if he could solve the problem, leading him to develop a way to pay contractors compliantly, efficiently and ethically.
Starting with this agency and his network of contractors, he began a business focused on legitimately paying freelance workers and providing tax-effective salary packaging solutions while paying Australian tax.
This business became known as Consultants Exchange, with the logo cXc. This was a place where consultants could exchange value, knowledge and services with recruitment agencies and their clients, and be paid compliantly.
In 1997, CXC established its first international office in Hong Kong to manage IT contractors seeking engagement solutions. The Hong Kong recruitment industry was driven by numerous companies based in the UK.
Amanda Collins set up CXC operations in the UK in 1999, starting on a desk propped up against a wall in a storeroom in Caterham. This business grew quickly, providing contractors with a compliant tax model and evolving through several legislation changes.
In the early 2000s, CXC opened offices in Melbourne, Canberra, Brisbane and Perth, followed by New Zealand and the US, ensuring that the company understood in-country legislation and could protect all stakeholders from risk.
Major agencies like Morgan and Banks wanted to send contract workers to Boeing in Seattle and had no idea how to approach this, providing growth opportunities for CXC.
A focus on enterprise solutions
CXC’s business changed direction again in the mid-2000s. In the US, Microsoft’s contractors had successfully won a class action claiming that they were similar to permanent employees, and were therefore entitled to share options like their full-time counterparts. This cost Microsoft millions of dollars.
As a result, Microsoft would not employ freelance contractors directly and was paying margins of 20-50% to an agency to avoid direct employment. They needed a provider to act as an employer for these contractors.
CXC provided this function, developing a model for enterprise clients that managed the whole of a client’s contractor workforce. For example, CXC managed all of Origin Energy’s 1,900 contractors – the largest contingent workforce program of its time.
Under new management
In 2012, long-standing CXC employees Peter Oreb and Ingrid Webber undertook a management buyout of the Australian business.
Dave then focused on global growth and the company rapidly expanded in international markets, spreading across Asia, Europe and the Americas. Like Australia, the international business initially focused on a recruitment agency offering, before evolving to provide services to enterprise clients.
In 2017, Pete took over from Dave as CEO, and Peter and Ingrid later took over the international business as Dave moved into semi-retirement.
Dave remains as chairman of the CXC Board of Directors and mentor for the management team, but Pete and Ingrid direct all day-to-day operations, supported by Bo Medved and the global directors.
CXC’s next chapter
Today, CXC offers the full complement of contingent workforce services to suit every workforce requirement.
We continue to lead the way in whole-of-workforce, management solutions, where all workers are managed under one governed program.
Contractor management and payroll remain our core business, and we are looking to expand our MSP, compliance and talent sourcing services – above all, making the “new world of work work for everyone”, not just some.