We are pleased to share this blog from Everest Group analysts, Krishna Charan, Vice President, and Akash Shukla, Senior Analyst.
With unprecedented talent shortages and economic slowdowns creating challenges for enterprises globally, talent acquisition and management remain top organizational priorities. While critical to building agility and resilience, traditional methods can be time-consuming, costly, and complex. By implementing a services-enabled technology model driven by an integrated technology ecosystem, enterprises can streamline talent acquisition and improve hiring outcomes. Explore the advantages and implications of using a service-enabled technology solution in this blog.
Features of a Service-Enabled Technology Solution
A services-enabled technology model brings all the benefits of digital solutions, deploying them at scale to meet varied technological expectations of diverse stakeholders and delivering a superior experience.
Here are the key characteristics of a services-enabled technology solution:
|Underlying philosophy||Completely digital solution with the flexibility to accommodate human intervention where required|
|Tools and platforms||Integrated ecosystem of tools and technologies|
|Flow of data||Seamless/uninterrupted data flow across multiple platforms through automated linkages, enabling better analytics and Artificial Intelligence (AI)|
|Multi-device access||Available with uniform experience across devices|
|User login||Single-user login across the entire ecosystem|
As the expectations for talent technology shifts toward a best-of-breed philosophy demanding extensive customization and broad functionality, a services-enabled technology approach with a strong underlying integrated technology ecosystem can be an ideal solution to meet enterprises’ needs. Let’s explore this further.
Integrated Ecosystem as the Key Differentiator
A prominent feature that sets a services-enabled technology solution apart is its ability to enable seamless integration among various third-party tools, applications, and the broader enterprise tech stack. This enables businesses to create a unified, end-to-end solution allowing for plug-and-play functionality for individual components that can be added, removed, or replaced. Typically, middleware serves as a bridge connecting various tools and systems like Vendor Management Systems (VMS), Applicant Tracking Systems (ATS), direct sourcing solutions, and other best-in-class third-party technologies. This facilitates effective communication and information exchange. Businesses can benefit from the strengths of various talent acquisition technologies while avoiding the limitations of an all-in-one platform.
But why is integration important? By adopting a services-enabled technology, forward-looking enterprises can pursue Total Talent Acquisition (TTA). This model acts as a gateway to operationalize the integrated view and implementation of common strategies across all talent
categories required for TTA.
Enterprises can use different core and add-on tools and technologies to attract, engage, acquire, and manage diverse talent categories. Integrating these tools rather than operating them in silos can create a comprehensive talent acquisition and management solution with several benefits.
The varied tools and technologies for managing various talent categories include:
- Permanent employees: Aside from core technologies like ATS and recruitment CRM (Candidate Relationship Management), enterprises are increasingly leveraging scalable point solutions that meet broader demands such as recruitment marketing, employee referrals, sourcing, screening, assessments, and interview scheduling.
- Temporary labor (staff augmentation resources): While a VMS is the core technology for Contingent Workforce Management (CWM), enterprises frequently use several augmentation tools for direct sourcing and talent pooling, analytics and benchmarking, sourcing, time and expense management, and onboarding/offboarding.
- Services procurement / Statement of Work (SOW): Several VMSs are designed to support functionalities like SOW creation, redlining, sourcing and evaluation, negotiation, headcount and asset tracking, billing and invoicing, and compliance management. In addition, enterprises increasingly are adopting add-on tools for supplier sourcing, SOW authoring, and benchmarking against peers.
- Independent Contractor (IC) / freelancers / gig workers: Beyond VMSs, enterprises also are using freelancer management systems (FMS), freelance marketplaces, and gig/crowdsourcing platforms to hire and manage ICs and freelancers. These technologies are expected to address the sourcing, onboarding, performance management, time and expense tracking, payment processing, compliance management, and reporting and analytics requirements.
Benefits of Services-Enabled Technology
Among the advantages of this approach are:
- Increased efficiency and cost savings: The services-enabled technology approach streamlines the talent acquisition process, reduces time spent changing between different systems, and saves costs associated with implementing multiple solutions. Enterprises can dedicate more time to focus on the strategic aspects of talent acquisition by automating routine tasks.
- Enhanced stakeholder experience: Enhanced collaboration among various stakeholders involved in talent acquisition can be achieved through easy access to information, shared feedback, and real-time communication. Also, the candidate experience is expected to
improve due to the smooth application process, automated and personalized communication, and real-time feedback.
- Increased visibility and analytics: Automated linkages across multiple tools can enable uninterrupted data flow across the entire ecosystem, facilitating real-time reporting and analytics. Enterprises and hiring managers can monitor key metrics, gain insights into talent pipeline and vendor spend, and make data-driven decisions to optimize the talent acquisition processes.
Recommendations for Enterprises
Developing a services-enabled technology requires careful consideration of enterprises’ varied and unique requirements and processes, which can often be competitive differentiators. This can sometimes be challenging due to the complexities involved. Companies also need to carefully consider the scope of the solution and its coverage – either addressing the total talent
spectrum or covering permanent and contingent categories independently yet holistically – based on their current maturity and appetite.
Enterprises also can partner with outsourcing providers, Managed Service Providers (MSP) or CWM and Recruitment Process Outsourcing (RPO) providers, that have the required expertise and a proven track record in building these solutions. Some of these providers have productized offerings backed by proprietary middleware, enabling plug-and-play functionality and facilitating smooth interoperability between various tools and technologies. Communicating the rationale for implementing new solutions to various stakeholders, training the talent acquisition teams to drive user adoption, and tracking the progress are some of the change management aspects that should be considered.
The bottom line: Before taking a services-enabled technology approach to talent acquisition, first assess your current technology stack and the potential return on investment (ROI). By using the appropriate technology for each talent category and integrating them effectively, enterprises can realize numerous benefits and fully optimize their talent acquisition processes.
About the Authors:
Krishna Charan is a Vice President at Everest Group and a member of the Business Process Services team. He assists clients on topics related to the entire talent acquisition and management value chain, covering permanent and contingent talent services and technology. Krishna’s responsibilities include managing Everest Group’s Recruitment Process Outsourcing (RPO), Contingent Workforce Management (CWM), Vendor Management Systems (VMS), and Freelancer Management Systems (FMS) research across both published and custom decision support offerings. Prior to joining Everest Group, Krishna was a Senior Business Analyst with Evalueserve. He holds a bachelor’s degree in pharmacy from Birla Institute of Technology and Science, Pilani, Rajasthan.
Akash Shukla is a Senior Analyst on Everest Group’s Business Process Services team. His primary focus areas are Contingent Workforce Management (CWM) and Managed Service Provider (MSP) research across published and custom decision support offerings. He assists clients by providing strategic insights, market trends, and competitive landscapes in areas like Diversity, Equity & Inclusion (DE&I), employer branding, talent acquisition technology, and other areas of talent acquisition. He holds a bachelor’s degree in engineering from Vellore Institute of Technology and a master’s degree in business administration from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai.