Through the SAP Fieldglass integration into its systems, Red Hat now has a digital external workforce management platform that enables the company to improve the visibility and value of its contingent workforce.
According to a report by Research And Markets, the worldwide services procurement market will grow at a compound annual growth rate (CAGR) of 10.4% between 2020 and 2027, reaching a value of $1.5 billion. The large enterprise segment, one of the sectors analysed in the study, is expected to increase at a 9.5% CAGR and reach US$874.4 million by the end of the analysis period.
The abovementioned projections bode well for SAP Fieldglass integration applications and solutions. SAP Fieldglass applications refer to SAP’s cloud-based open vendor management system and are designed to help businesses manage their external workforce more efficiently. The company’s Q2 2021 financial results indicated that cloud revenue and the current cloud backlog in this division grew by double digits year-over-year.
In March, Capgemini, a global leader in consulting, technology, engineering, and outsourcing services, implemented SAP Fieldglass Contingent Workforce Management and SAP Fieldglass Services Procurement applications to manage its entire external workforce management operations — from procurement to invoicing and on- and offboarding processes.
Recently, SAP also announced that Red Hat, a leading provider of enterprise open source solutions, selected the SAP Fieldglass Contingent Workforce Management application to help centralise and standardise its contingent workforce management. This has so far allowed Red Hat to enhance its business processes and increase visibility into spend for better talent decision-making.
By adhering to market rates and laws, Red Hat has reduced costs and increased compliance for managing its contingent workers in North America since integrating SAP Fieldglass into its systems.
Jennifer Dudeck, Senior Vice President, Chief People Officer at Red Hat, said that the company needs a workforce that is specialised yet flexible, adaptable, and open to growth to help retain its position as the top provider of enterprise open source solutions in the industry.
“Our contingent workforce is a major contributor to our innovation and growth. Our work with Monument Consulting and the SAP Fieldglass application has enabled us to improve the visibility and value of our contingent workforce, helping us access top talent, accelerate hiring and streamline onboarding, all while reducing costs,” she explained.
Red Hat Streamlines its External Workforce Program Through SAP Fieldglass Integration
To source and manage highly competent contingent workers, Red Hat previously leaned on manual processes across several staffing vendors. The company needed to improve visibility into spending, headcount, and work quality while also streamlining processes across its North American operations to maximise the value of its contingent workforce program.
Furthermore, Monument Consulting, a global contingent workforce managed services provider (MSP) with an ecosystem of partners spanning 50 countries, helped Red Hat to deploy the SAP Fieldglass Contingent Workforce Management solution in just three months.
SAP Fieldglass integration has enabled Red Hat to improve its contingent labor management and helped the firm achieve the following value-driven results:
- Enhanced experience for candidates and hiring managers as the application provides a faster hiring process and better access to top talent with streamlined interviews and on- and offboarding operations.
- Streamlined and consolidated its multiple contingent workforce management processes such as payments and supplier management systems.
- Integration into data and workflows provided a highly configurable solution with diverse capabilities such as the consistent implementation of local tax and employment regulations across locations.
- Improved its contingent workforce management in North America and reduced costs from its staffing supplier network through real-time data and embedded analytics.
Commenting on the successful implementation of the SAP Fieldglass Contingent Workforce Management solution, Vish Baliga, Chief Technology Officer at SAP Fieldglass, said:
“Red Hat, well known for its community-driven approach to innovation, understands that to achieve its full potential, it must adapt to the unique demands of the contingent labor market and innovate with it to better engage highly sought-after talent.”
“Red Hat now has a digital external workforce management platform that can efficiently grow with its business as it continues to advance open source technology around the world,” Baliga added.
Last April, Red Hat stated that it added over 2,000 talent to its workforce and is continuing to ramp up hiring in the new year. Headquartered in North Carolina, the company has offices around the world including Australia and New Zealand. In a statement, Red Hat said:
“Our drive in 2021 is to further invest in emerging markets and continue to unlock the possibilities of open hybrid cloud for our customers. To do that we plan to add even more talent to our workforce in 2021, including more than 900 technical roles.”
