Contingent Workforce Outsourcing
 | It has been suggested that this article be merged into Contingent work. (Discuss) Proposed since February 2007. |
| It has been suggested that this article be merged into Contingent Workforce. (Discuss) Proposed since September 2007. |
Contingent Workforce Outsourcing (CWO) denotes a provider who facilitates clients' ability to aggregate and track spending, billing, and performance of more than one type of non-W-2 worker. This includes traditional temps and independent contractors and consultants.
About
The size of the CWO market, according to the Bureau of Labor Statistics (BLS), is that nearly 10 percent of the U.S. workforce can be classified as contingent.[citation needed] The BLS predicts that the contingent growth will out pace FTE growth by a 3:1 ratio over the next 10 years, and that by 2010, nearly 25 percent of the U.S. workforce will be contingent or part-time.
The business trends behind the up-tick in contingent work are inexorable. Some retired employees with valuable skills may seek reentry to the workforce as outside consultants in their area of specialty. Two of the largest and most-talented segments of the U.S. workforce, retiring baby boomers and Generation Xers, are foregoing full-time employment as W-2 workers and opting to work as 'contingents'. Multi-earner families where one partner has company-funded employee benefits make it possible for the other partner to work freelance. With business expenses fully deductible, a self-employed consultant with 1099 income and proper planning can have a lower effective tax rate than a worker with W-2 income. Businesses are motivated to draw upon an experienced and valuable pool of workforce talent, which in turn may be cost-effective and beneficial to both parties.
CWO is a toolkit that has evolved to handle the non-W-2 business wave. As contingent workers continue to grow at a double-digit annual pace as a percentage of the overall workforce, companies are feeling an ever greater need to have tools to manage this quickly-growing phenomenon. Capturing and managing data that allows managers to see and control their entire contingent and full-time workforces is a complex task that is now possible with contingent workforce management or CWO tools.
See also
[Category:Working conditions]]