For a long time, staffing suppliers and vendors have seen a vendor management system (VMS) as a threat. But as described in a recent article in Contingent Workforce Strategies, they are starting to see it more as an enabling tool for their customers. The most progressive suppliers are looking to integrate to the VMS in order to reduce their operational cost and hopefully gain more market share than their less proactive competitors.

Since Taleo has been a provider of a VMS solution called Taleo Contingent, it pushed Taleo Research to look at the ROI of these solutions. We published studies and have been puzzled by the lack of ownership in many large companies to this huge ROI!

The adoption growth has been slower in 2005 than before as shown below, but we believe that the recent threshold reached and supplier understanding of the value could make this market grow much faster in the future!