Direct sourcing is an increasingly attractive way for companies seeking cost savings and efficiency to grow their talent pool.

SIA’s most recent Workforce Solutions Buyers Survey asked respondents what percentage of their organization’s contingent workforce spend is sourced directly (without a staffing firm/from an internal pool).

Currently, just 1% of buyers’ spend at the median level is sourced without a staffing supplier; however, buyers plan to increase that to 10% in two years and 15% in 10 years.

Direct sourcing usage decreased to 26% in 2019 from 27% in 2017, but since then has steadily increased to 35% in 2022. In addition, since 2018 the number of respondents likely to seriously explore direct sourcing within two years has nearly doubled, increasing to 52% in 2021 from 27% in 2018; however, that percentage decreased to 49% in 2022.

The survey also queried respondents that do not have direct sourcing at their company, about what is preventing the organization from pursuing such a strategy. Respondents cited lack of corporate consensus and the absence of technology to support direct sourcing as the biggest reasons why their firms was not pursuing such a strategy.

The Workforce Solutions Buyer Survey 2022 Americas report is available to SIA’s CWS Council members.