The Use of Start-ups and Contingent Staff by Large Companies Becoming More Common

A Shift In Mindset for Large Enterprises

In the past we have talked about startups and their use on contingent staff, particularly when expanding internationally.  In addition to this trend, there is another trend being reported on, where large companies are increasingly turning to start-ups instead of large tech vendors to fill their talent requirements, choosing to engage project-based or non-perm workers.

As reported by the Wall Street Journal, this new ‘trend’ or accepted new direction by larger enterprises, started in the last ten years.  Historically, larger companies would only usually purchase technology services from equally established, large technology vendors, however in recent years we are seeing a change in mindset, where they are realizing the value of partnering with startups.

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“A major factor with the Enterprise welcoming partnerships with start-ups is rocket ship growth companies utilize a contingent workforce to deliver all facets of a project in an agile strategy.  Low overhead and positioning talent where relevant is very attractive as it relates to low-costs for the enterprise, while delivering high-value and no delay on projects.  Also, these start-ups are sought-after acquisition targets so knowing operational models helps during buy-out talks. ”

Lou Calamaras, CCWP Global Client Director
CXC Global North America 

Please contact us if you’d like to speak more about contingent workforce trends and the growing use and best future practices when engaging the non-permanent / extended workforce.

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