One of our key FTSE100 clients has been speaking about achieving a 6% year on year reduction in contract numbers; as such 1st Executive assessed the current health of the interim Procurement, Supply Chain and Sustainability market through conversations with our key clients globally in September.
95% of clients are using Interim Resource in Procurement, Supply Chain and Sustainability.
Contractor populations vary significantly from 2.5% - 50% of teams currently made up of interim contractors.
14% is the average % of interim contractors within a team.
Within Financial Services, FMCG and Pharma industry sectors in the UK, we identified a trend for engagement inside IR35, especially for indirect procurement notably in most cases utilising a blanket determination. These industry sectors were also those dominated by MSP led solutions.
Interim Use In Europe and the UK:
- Europe: Assignments typically came to market with longer contract periods and were more willing to consider a limited number of days per week.
- The UK: The UK continue to request 5 days.
Interim Use In the USA:
Following a 27% year on year rise in interim use across 2021 and 2022, we continue to see a noticeable trend in our US based clients. They are predicting further increase in their use of contract resource through 2024 with Supply Chain technology and Sustainability skill requirements playing a significant part.
We identified a huge range of contract duration:
From 4 years at the outside, to short term 3 month engagements. Market average tenure has not seen a significant change over the last 8 years and remains consistent at 10 months.
The routes now being utilised for larger programme and transformation projects are:
- Statement of Work
- Consultancy frameworks (MCF3)
- Alternate consulting solutions
We have identified a small decrease in the use of traditional interim resource via the MSP led/inside IR35 markets. We have also identified that our clients are being proactive in seeking alternate vehicles to engage highly skilled niche contract resource.
If you're in need of any specific MI or benchmarking in support of your Interim strategy, please don't hesitate to reach out to: email@example.com or firstname.lastname@example.org