3 Reasons Buyers are Switching to Subscription-based VMS Pricing Models
While many contingent workforce programs still purchase VMS services under a 20-year-old percent-of-spend fee model, more programs each year are shifting toward VMS subscription pricing models similar to those employed by other enterprise software solutions.
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Industry consultants note that “VMS platforms are [now] being bought at a more strategic, enterprise level.”
Citing the need for better independent contractor (IC) compliance management and statement of work (SOW) based contract management functionality, they report that “the percent of spend model is increasingly challenging to implement” and a barrier to geographical and labor category expansion.
Experts predict that, “as the funding model changes to more of a corporate platform-type system, the additional labor category and global adoption should increase exponentially.”
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An Introduction to Funding Models and Pricing Methods for a Vendor Management System (VMS)