Excellence model - Market Reach

This is an extremely important parameter, in which most organizations have a gigantic improvement potential.

No matter how good you are in choosing the right contractor, you will always only be able to select the best one out of those you have to choose from.

The market for knowledge workers can be divided into two main groups:

  1. Freelance contractors
  2. Employees at consultant companies

The challenge for your organization is to create a setup that will let you access as large a part of the market as at all possible. Most enterprise companies work with a limited list of often 3-5 suppliers. If one or more of the companies on the list are specialized in finding and presenting freelance contractors, then the organization can have a fairly good reach in the freelance market, but you will never achieve a high coverage in the market of employed contractors using a model with just 3-5 preferred suppliers.

Digital platforms are creating a fixed process for minimizing the administration work of having many vendors. Organizations should identify their exact needs in terms of remote needs or onsite needs and then evaluate how digital platforms can help to increase market reach and bring down internal administration costs.

Many organizations allow their access to the market to be regulated by relations between employees in the organization and partners in the consultant companies. These relationships are (literally) worth gold for the consultant companies, as they in these bilateral relationships can charge a high price because the competition power of the market is not set into action. 

Organizations should build trustful relationships with vendors, but in order to get the highest quality and the best prices, they must continuously use the competitive power of the market and base their market access on objective criteria.

Read more about the phases here: 

If you want to talk about how we can help to enable your organization to be excellent in sourcing external workforce, then book a meeting directly in our calendar below: