The most utilized pricing model for direct sourcing is percentage of pay rate, representing just over half of all reported contracts, according to the “Direct Sourcing Platform Landscape” report released by SIA. As direct sourcing programs mature, there may be a shift to more RPO-like pricing models such as a management fee combined with a success fee (per hire). Approximately one-third of contracts are represented by “other” pricing models. For example, one provider has agreed to monthly minimum payment guarantees with some clients, but should the percentage of pay rate exceed the minimum for the client, then there is no minimum payment.


The “Direct Sourcing Platform Landscape” report is available to CWS Council members.