Like the VMS and MSP wave, the staffing industry is undergoing another major shift. This time it is from self-sourcing staffing thanks to new business models like Uber in the on-demand staffing space. The self sourcing wave didn't emerge suddenly. It evolved with pioneers like guru.com and eLance treading new ground and establishing themselves for over a decade and covering all stages of engaging a freelancer.
These were the key achievements and milestones that enabled companies to start self-sourcing staffing
Hire Freelance Talent from Anywhere- First, on-demand staffing marketplaces like oDesk/Upwork allowed companies to easily access curated freelancers from around the world instantly. Lots of small businesses began to rely on these services for everything from SEO to admin assistants.
On-Demand Freelancer Talent Pool- Then came freelancer management systems (FMS) like WorkMarket, OnForce, FieldNation that allowed companies to create their own private freelance talent pools so managers could benefit from a company's past experience with freelancers and engage them on a sporadic basis.
Transaction Platforms and Compliance - And finally there were transaction enablers including compliance specialists, payroll providers and MSPs like MBO Partners, ProUnlimited and ZeroChaos that allowed companies to find freelancers themselves and then payroll the contractor through these 'employer of record' companies to stay compliant and low risk.
Other Digital Labor Platforms- But more than anything, the wild success of on-demand labor platforms like Uber and TaksRabbit showed how powerful it can be to harness matching buyers and sellers more efficiently. This opened the eyes of consumers, freelancers and businesses about why they were still tolerating inefficient systems when things could be so efficient.
The high bar is now set by Uber and everyone is expected to at least match it. All these separate but important trends have set self-sourcing onto a fast growing path. This doesn't mean that self-sourcing is going to replace staffing agencies though. Read more about how self-sourcing and staffing agency models are actually complementary here.