US payroll services provider ADP has acquired WorkMarket, which is number five in the contingent workforce management (CWM) space for an undisclosed sum.
Human capital management (HCM) software expert Albert Pang told Diginomica.com that the purchase would help WorkMarket expand its reach in the US$380 million HCM market, which is growing at 5% per year.
"With ADP’s considerable resources, WorkMarket will give SAP Fieldglass, Upwork and Beeline/IQNavigator a run for their money,” he said. “Similar to its recent purchase of Global Cash Card, the Work Market deal fits into ADP’s strategy of extending itself into the payment processing space."
In the contingent labour market space, “paying contractors promptly for their work is as important as the task of finding them in the first place", Pang added.
Meanwhile, HCM analyst Naomi Bloom said ADP was likely to focus on WorkMarket's Vantage CWM product first as it is used by its larger customers that are more likely to require its functionality.
"I also assume they’ll continue to offer WorkMarket on its own merits like they do many other acquired/built capabilities, for example background checking, tax filing, and benefits admin, which are offered to customers who aren’t running on an ADP core HRMS or even payroll," she added.
Diginomica.com suggests that savvy recruiters will use CWM as a no-risk way of testing candidate suitability in key areas.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
US payroll services provider ADP has acquired WorkMarket, which is number five in the contingent workforce management (CWM) space for an undisclosed sum.
Human capital management (HCM) software expert Albert Pang told Diginomica.com that the purchase would help WorkMarket expand its reach in the US$380 million HCM market, which is growing at 5% per year.
"With ADP’s considerable resources, WorkMarket will give SAP Fieldglass, Upwork and Beeline/IQNavigator a run for their money,” he said. “Similar to its recent purchase of Global Cash Card, the Work Market deal fits into ADP’s strategy of extending itself into the payment processing space."
In the contingent labour market space, “paying contractors promptly for their work is as important as the task of finding them in the first place", Pang added.
Meanwhile, HCM analyst Naomi Bloom said ADP was likely to focus on WorkMarket's Vantage CWM product first as it is used by its larger customers that are more likely to require its functionality.
"I also assume they’ll continue to offer WorkMarket on its own merits like they do many other acquired/built capabilities, for example background checking, tax filing, and benefits admin, which are offered to customers who aren’t running on an ADP core HRMS or even payroll," she added.
Diginomica.com suggests that savvy recruiters will use CWM as a no-risk way of testing candidate suitability in key areas.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
