Enterprise organizations stand to benefit from a vendor management system regardless of the size of their contingent workforce program, according to recent SIA research. Approximately 44% of the VMS market by spend is represented by programs of $100 million or less, signifying a thriving midmarket despite the perception that VMS adoption best suits large enterprises.
The total annual expenditure on VMS programs is spread almost evenly across different budget levels, with programs under $30 million per year accounting for 20% and those of more than $1 billion representing 22%. When measured by volume of clients, however, the majority of reported programs in 2022, 53%, cost less than $10 million.
Additionally, SIA predicts further mid-market growth as providers refine their midmarket offerings and workforce mix within smaller organizations becomes more weighted towards a contingent workforce.