Businesses worldwide spent an estimated $523 billion on statement-of-work projects in 2019, according to SIA research. The US accounted for nearly half of that, $250 billion, with the rest split between Germany ($51 billion), UK ($14 billion), Canada ($11 billion), France ($9 billion), Italy ($7 billion) and the rest of the world ($180 billion).
While SOW consultants are typically employed by consulting firms, a host of technology and other staffing firms have also entered the solutions space for its greater premium margins (the theory being that you are paying for the firm’s proven methodology and chemistry of the team). At times “rogue” line managers have used SOW arrangements to avoid internal restrictions on the use of temporary workers or agency consultants.
With billions on the line, many CW programs are eyeing SOW as a cost-savings opportunity. SIA’s most recent survey [1] of contingent workforce managers, 59% said they already have statement-of-work consultants incorporated into their CW program, while 37% will likely seriously explore the idea within two years.
Sources: The Global Gig Economy [2]; Workforce Solutions Buyer Survey: 2019 Full Report [1]