By Freya Purnell
SAP AG has announced plans to acquire contingent workforce management technology provider Fieldglass.
With contingent workforces expected to grow by nearly 30 per cent over the next three years, according to Ardent Partners research, the addition of Fieldglass’ cloud-based Vendor Management Solution will help SAP to meet growing demand among employers to manage flexible workforces.
SAP said the acquisition, combined with Ariba and SuccessFactors, will enable it to deliver a platform for businesses to manage their entire workforce through the entire lifecycle, by providing companies with the software, collaboration tools and networks need to engage and manage permanent and temporary staff in innovative ways.
Headquartered in Chicago, Fieldglass’ cloud-based solution is currently used in more than 100 countries, and was recognised by Forrester Research as the highest-scoring VMS provider in Contingent Workforce Management/Vendor Management System functionality and market presence.
Bill McDermott and Jim Hagemann Snabe, co-CEOs and members of the Executive Board of SAP AG, described the acquisition as a significant milestone in the company’s strategy, saying, “The acquisition of Fieldglass creates a compelling advantage for SAP customers as they access, attract and manage talent via a networked economy. This move reaffirms SAP as the undisputed lead of integrated human resources and procurement in the cloud for businesses of all sizes and industries.”
Fieldglass CEO and co-founder Jai Shekhawat said the company looks forward to extending its leadership position, increasing sales and delivery capability and entering new markets.
“Joining with SAP will allow us to dramatically accelerate our global growth plans and pace of innovation at the unique intersection of the human capital and procurement sectors,” he said.
SAP expects to complete the transaction in the second quarter of 2014.
