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SAP Capgemini Deal Boosts SAP’s Contingent Workforce Management Proposition
by Ron Westfall | March 12, 2021

The News: The SAP Capgemini deal announced by SAP covering the adoption of the SAP Fieldglass Contingent Workforce Management and SAP Fieldglass Services Procurement applications was made earlier this week. With the goal of more effectively managing its highly skilled contingent workforce, Capgemini has extended its service capabilities, especially in niche areas, to help drive its sustainable growth objectives.

The SAP Fieldglass applications are designed to enable Capgemini to be more flexible to support and expand its portfolio of services, manage compliance, and be more efficient. With a growing external workforce playing an increasingly important role in supporting the business transformation of its clients, Capgemini sought better visibility into its contingent workforce. The firm’s procurement team deployed the SAP Fieldglass applications to automate and standardize the sourcing, engagement, management and pay of its contingent workers. The company selected the SAP Fieldglass applications to support its global business structure, enabling it to deliver a simplified and more agile process across the business. Read the SAP release here.

SAP Capgemini Deal Boosts SAP’s Contingent Workforce Management Proposition, Expanding Awareness of SAP Fieldglass

Analyst Take: SAP gains a critical endorsement of its SAP Fieldglass Contingent Workforce Management and SAP Fieldglass Services Procurement applications from the SAP Capgemini deal. Capgemini’s selection of the company’s contingent workforce and procurement solution provides SAP the sales and marketing boost key to capturing valuable mindshare and potential market share in the tightly contested workforce management market segment.

SAP needed to tout the Capgemini deal to demonstrate its diverse portfolio capabilities across the expanding contingent workforce segment. For many organizations, increased reliance on contingent workforces becomes critical during periods of economic uncertainty, such as accompanied by the COVID-19 pandemic, providing a bridge in economic recovery and business survival. Through contingent workforces, organizations can transition from survival mode to revival mode with more efficiency and speed.

In addition, Capgemini needed to select SAP’s offering to gain the flexibility and speed required to assure high-quality selection of workforce talent on an on-demand basis. Equally important Capgemini improves compliance oversight of its contingent workforce through the automation and systemization of recruiting and managing of flexible labor. This extends to enhanced coordination of company policies across both permanent and contingent workforces such as consultants.

Capgemini also harnesses increased visibility into its procurement process, measuring more precisely the value of its contingent workforce practices and sharpening company insights on hiring time frames, fill rates, job posting quality, costs, compliance, and any matter related to better understanding of on-demand external workforce processes and engagements.

The Competitive Landscape Implications of SAP’s Capgemini Deal

SAP’s Capgemini deal strengthens the company’s ability to win more valuable mind share and potentially close market share gaps against workforce management market leaders Kronos, Ultimate Software, ADP, and Workday, as well as counter major rivals like Oracle and Visier in their efforts to expand their presence through the new SAP Capgemini deal. In the near-term, I see SAP gaining portfolio differentiation through its Fieldglass Contingent Workforce Management offering, obliging key rivals to allocate more portfolio development and marketing resources to addressing the growing external workforce demands of organizations.

In working with a major client like Capgemini, SAP needs to follow with use case validation of how its Fieldglass solution is delivering cost and operational benefits from closer integration of contingent workforce applications across overall workforce management workflows. In particular, I see SAP gaining more interest from enterprises in streamlining the complexities of contingent workforce, especially in areas such as assuring compliance with strict local labor laws. SAP’s vast global channels and deep heritage in providing enterprise software solutions can fortify enterprise confidence in adopting Fieldglass solutions.

SAP Boosts Contingent Workforce Management Proposition: Key Takeaways

I foresee the overall workplace management market, including the contingent workforce management market segment, as growing steadily on a global basis across the next three years due in large part to the demands of supporting the fast-growing distributed workforce model.

With the SAP Capgemini deal, SAP improves its competitive position to directly challenge its major workforce management rivals by meeting the burgeoning demands of major clients, such as Capgemini, to adopting the SAP Fieldglass Contingent Workforce Management solution to mitigate the complexities of managing their contingent workforce applications.

SAP’s portfolio capabilities especially apply in key areas like upholding the wide spectrum of local labor laws pertaining to contractors as well as improving integration across overall workplace management platforms. With the SAP Capgemini deal, the company fortifies its competitive standing in fulfilling the burgeoning distributed workforce demands of workforce, especially including unique contingent workforce requirements.

Futurum Research provides industry research and analysis. These columns are for educational purposes only and should not be considered in any way investment advice.

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