Freelance Economy

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: The Freelance Economy in procurement is characterised by hiring freelancers instead of permanent employees, for instance by using "Expert to Rent" matchmaking platforms
• Impact: This trend addresses skill shortages and reduces costs related to personnel, office space, and facilities. It also offers the possibility to flexibly staff projects according to their scope and intensity

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Globalisation of Talent Pool: The digital era and increased globalisation broadened the access to a global pool of freelance talent, allowing but also requiring procurement departments to tap into a diverse range of skills and experiences
• Advancements in Remote Collaboration Tools: The advancement of digital collaboration and project management tools makes it easier to integrate freelancers into existing workflows, regardless of their location
• Increased Demand for Specialised Skills: Complex procurement projects often require specialised skills that are not always available in-house

Use Cases 

How to apply this trend? 

• Freelance Platforms: Flexible staffing of procurement projects
  Example: Upwork is a freelance marketplace that connects businesses with freelancers for a variety of services, including procurement to help them with tasks such as sourcing suppliers, negotiating contracts, and managing supplier relationships
• Flexible Project Support: Hire freelancers for projects that require urgent staffing or knowledge
  Example: Bosch LegendsLab allows freelancers to register and be provided with suitable projects, also from the procurement field, to efficiently support Bosch with its activities

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Develop a Freelancer Integration System: Implement systems specifically designed for onboarding, managing, and offboarding freelancers to streamline their integration
• Create Dynamic Project Allocation Models: Adapt project allocation models to dynamically include freelancers, ensuring optimal utilisation of both permanent and freelance resources based on project needs and complexity