**Paris**: In an effort to optimise its external workforce management, Capgemini has successfully implemented SAP Fieldglass solutions across 30 countries, achieving significant improvements in cost efficiency and productivity. This highlights the increasing necessity for advanced technology in managing contingent talent amid evolving workforce demands.
In 2016, the Paris-based consultancy firm Capgemini identified a pressing need to improve the management of its global network of employees, particularly concerning its contingent workforce. At that time, the firm faced challenges with limited visibility into its external staff and sought a technological solution to consolidate insights and track various metrics, including headcount, performance, capabilities, and compliance. Furthermore, adapting to rapidly changing legislative requirements across different regions only added to the urgency of this initiative.
This situation reflects broader trends outlined in an SAP-sponsored report by Economist Impact titled “Flexible Futures: Navigating the Evolving External Workforce.” The report delves into how organisations are increasingly leveraging external workers to address skill shortages and enhance productivity. It also underscores the critical role of innovative technologies and strategic approaches in seamlessly integrating external talent, thereby helping companies remain competitive in a fluctuating workforce landscape.
To address its challenges, Capgemini implemented SAP Fieldglass solutions, which facilitate the management of its contingent workforce programme across more than 30 countries. These cloud-based solutions offer integration capabilities with other SAP tools and incorporate artificial intelligence (AI) for optimising external workforce management. As a result, Capgemini has improved its oversight of contractors and temporary workers throughout its entire supply chain, utilising data from over 50 nations and achieving a 26% increase in unitary cost savings alongside a 50% rise in productivity from its internal procurement services team.
Speaking to the SAP publication, Andreas Hettwer, group procurement category director at Capgemini, remarked, “The increased visibility into all external workforce-related outcome and process steps has enabled sharpened insights, along with smaller fulfillment time frames, higher fill rates, and improved compliance. We have truly optimised functions around the external workforce.”
The external workforce, which includes freelancers, contractors, consultants, and gig workers, has become an essential component for numerous organisations. However, hiring and managing this diverse talent pool efficiently while remaining adaptable to future needs can prove challenging. The Economist Impact report addresses the growing demand for effective recruitment strategies to meet increasing internal skill gaps.
Capgemini serves as a notable example of this recruitment strategy in action. In instances of heightened demand, the company notifies its preferred suppliers, and the SAP Fieldglass solutions generate recommendations from distribution lists of candidates who possess the required skill sets. This process accelerates hiring and allows Capgemini to select from an optimised pool of candidates. The data generated within SAP Fieldglass is subsequently extracted into Capgemini’s dashboards, providing an immediate overview of each supplier’s performance.
Effectively managing an external workforce entails juggling numerous variables, including talent sourcing, budget tracking, compliance assurance, and performance measurement. AI-driven automation can facilitate these processes, enabling companies to efficiently capture and compare critical information related to non-payroll labour. Such capabilities empower organisations to make well-informed decisions that enhance their return on investment (ROI).
In 2023, amid surging inflation, Capgemini encountered a significant influx of rate increase requests. Through constructive discussions with its supplier base, the company successfully managed a cost-rate evolution and communicated inflation impact KPIs to its board. This approach bolstered executive confidence in the continental workforce’s capacity to deliver productivity. By the end of the implementation phase, Capgemini had fulfilled 80% of its contingent worker demand.
Hettwer elaborated on the transparency afforded by the new system, stating, “We have full visibility. We know the number of contractors, we know our demand per geography, per business line, and we know the cost rates we pay for certain roles, and we measure how the cost rates evolve over time.”
Moreover, Capgemini is looking into new avenues to leverage the considerable data produced through the global deployment of SAP Fieldglass solutions, with a specific focus on AI integration. Economist Impact data indicates that many executives view marrying traditional systems with AI and machine learning as a crucial priority in the coming three to five years.
Hettwer noted, “AI will certainly be an important factor in our business. We’re being patient and methodical in order to make sure that we introduce it safely and effectively.”
Capgemini’s experience with the SAP Fieldglass suite exemplifies the transformative potential of advanced technology in managing and optimising an external workforce. By enhancing visibility, streamlining procedures, and utilising AI-derived insights, the firm has realised substantial improvements in talent acquisition, supplier performance, and cost efficiency. Consequently, Capgemini has managed to capture 98% of its global contingent workforce expenditure, with a 60% acceleration in fulfilment times compared to the programme’s inception.
As the landscape of work continues to evolve, SAP Fieldglass solutions equip organisations with tools essential for managing the lifecycle of external employees—from requisition and engagement to offboarding and evaluation. These functionalities prove vital for maintaining resilience, agility, and data-driven decision-making, ultimately transforming external labour into a flexible, value-generating resource. Capgemini’s emphasis on innovation and compliance sets a benchmark for other businesses seeking to fully exploit the potential of their contingent workforces in today’s competitive global market. Amber Roth, vice president of Global Presales & Strategy for SAP Fieldglass, has been instrumental in these developments.
Source: Noah Wire Services
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