Workday is closing out 2021 the same way it commenced it — with a major acquisition to fill a require in its HCM platform. It can be acquiring Vndly Inc., which makes a platform to help deal with non-employee workers, for $510 million.
Vndly’s system handles a assortment of external workforce needs, from management of outsourced contractors to personal contingent workers. It assists to give a company a total see of its workforce, both of those employee and non-employee.
The wide trend is for vendor management devices (VMSes) to mix contracting devices, which are primarily managed by IT and procurement, with contingent labor, generally controlled by HR.
In August, Vndly realized integration with Workday’s HCM platform. Workday plans to total the acquisition in its fiscal fourth quarter, which finishes Jan. 31, 2022.
Workday has invested in a related platform, Utmost Program Inc., which is also deeply integrated in its platform.
The Vndly acquisition puts Workday in an improved placement in opposition to its crucial rival SAP, said Arkadev Basak, vice president at Everest Group, who leads the research firm’s talent observe. SAP has an substantial VMS system, Fieldglass.
Some other major competition in the VMS market include Beeline Inc., in Jacksonville, Fla., and Pro Limitless Inc., in San Francisco.
Broader workforce traits
“Who wins the race will depend on a selection of things, specially the amount of integration,” Basak said. That features an potential to have a unified system of report to deal with a firm’s total workforce and expending, he said.
Arkadev BasakVice president, Everest Group
The integration of non-employee workforce management with HCM devices has been underway for a although. In 2018, for instance, ADP acquired WorkMarket, an prolonged workforce management platform, Holger Mueller, an analyst at Constellation Research, noted.
At last week’s third-quarter earnings phone with analysts, Aneel Bhusri, co-founder and co-CEO at Workday, said, “One particular trend that has been accelerated by the demands of the pandemic is the long run of perform, which demands new methods of considering about workforce composition and how to deal with different kinds of workers.”
Mueller did not characterize Workday’s planned acquisition of Vndly as a reaction to the pandemic, but said that he sees it extra as a shift to ongoing changes in the market and the rise of interest in VMS instruments.
In January, Workday acquired Peakon ApS, an employee comments software package system. It paid out $seven-hundred million for the Demark-based firm.
Patrick Thibodeau handles HCM and ERP technologies for TechTarget. He is worked for extra than two many years as an organization IT reporter.