SAP Fieldglass Solutions Enable Transparent and Effective External Workforce Management in Mexico
Digital Technology Can Enable More Than 8 Million Mexicans to Work in a More Efficient, Transparent External Workforce Model in Compliance with Regulations
Global business dynamics have transformed as newer generations looking for more flexible job opportunities join the working age population. Leading organizations are engaging more external workers than ever before to help gain competitive advantage and drive the business forward, necessitating the adoption of new strategies to successfully manage this growing workforce segment. That is where SAP Fieldglass comes in with its industry-leading, cloud-based vendor management system that helps organizations around the world find, engage and manage their external workforces.
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According to the “Collaborative Economy in Latin America” study conducted by the IE Business School, Mexico ranks second in Latin America for greatest potential to develop an economy reliant on external workers, below only Brazil.
Based on this, companies in Latin America must be increasingly innovative and disruptive in the sourcing and management of their external talent. One solution is outsourcing, where a company delegates talent acquisition and management to a third-party expert, who will then take on the recruitment, selection, hiring, calculation and payment of salaries, and in some cases the mandatory fees to government bodies, until the conclusion of the working relationship.
According to the 2014 Economic Census of the National Institute of Statistics and Geography, outsourcing in Mexico doubled in the last 10 years, representing 16.6 percent of people employed, while in 2004 it was 8.6 percent; and this trend keeps growing, which could represent more than 8 million Mexicans today who belong to an external workforce.
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However, there are deficiencies in the implementation of outsourcing strategies. In fact, the Mexican government aims to regulate outsourcing to eliminate bad practices, as well as guarantee labor rights and compliance with tax obligations.
“A well-managed external workforce strategy and approach helps companies ensure transparency and efficiency to obtain the expected benefits, such as operating cost savings, improved worker quality, lower turnover and better workforce flexibility. All this, while helping to comply with the law,” says Eric Rossati, director of SAP Ariba and SAP Fieldglass in Mexico.
Cloud-based technology can help companies, of any industry and specialization, to ensure this transparency of the external workforce without sacrificing efficiencies. SAP Fieldglass solutions automate the entire process of finding, procuring and managing external talent, helping to reduce costs, enforce compliance and increase efficiencies. With the real-time connection to a network of global service providers and contingent workers, organizations can find specialized skills quickly, and scale up or down with speed and efficiency to build a better way of working.
Just as the SAP Fieldglass solution is making it easy for companies to achieve total workforce visibility and optimize external worker quality, more and more industries are relying on external talent to run business as usual, including manufacturing, finance and commerce. The tourism sector, due to its own nature of seasonality, demands external workers with highly specialized skills.
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