SAP’s address Fieldglass extends SuccessFactors’ HR reach to contingent workers and Ariba procurement to labor and services.
SAP announced on Wednesday the planned acquisition of Fieldglass, which supplies a cloud-based vendor management system for procuring and managing contingent labor and services. The deal complements SAP’s cloud-based SuccessFactors human resources applications and its Ariba procurement network.
The deal positions SAP to aid companies “manage their entire workforce — both temporary and permanent staff — from initial recruiting and on-boarding to ongoing development, performance management, retention, and retirement,” SAP said in an announcement.
[Want more on SAP’s cloud plans? Read Can SAP Master Cloud & On-Premises?]
Based in Chicago, the 14-year-old Fieldglass has greater than 250 corporate customers starting from AIG and American Airlines to Johnson & Johnson and Verizon. The job descriptions range from lawyers, PR specialists, developers, and engineers to flight attendants, cashiers, clerical workers, and cooks. Managing contracts and statement-of-work services is attending to be a huge business; companies now spend $3.3 trillion annually on freelancers, contract workers, and temporary staff, SAP said.
Fieldglass customer VMware, as an instance, manages greater than $55 million in annual contingent labor within the US and Canada, including technical, business professional, and administrative positions, in keeping with a up to date case study (registration required).
Fieldglass had greater than $27 billion in workforce spending under management in 2012, consistent with a Staffing Industry Analysts report. The personal company has greater than 340 employees and was worth roughly $220 million in 2010, when it last raised venture capital funding.
The terms of SAP’s acquisition weren’t disclosed. The deal is subject to regulatory approval but is anticipated to shut within the second quarter. Fieldglass’s leadership team and employees are expected to affix SAP upon the completion of the deal, in accordance with an SAP spokesperson.
“Joining with SAP will let us dramatically accelerate our global growth plans and pace of innovation on the unique intersection of the human capital and procurement sectors,” Jai Shekhawat, CEO and co-founding father of Fieldglass, said within the release. The company’s cloud-based vendor management system is utilized in greater than 100 countries and 16 languages.
There’s a good number of pressure on SAP to extend cloud revenue in any respect costs. But when the measure of a successful acquisition is adjacency to one’s current market, SAP seems to have found a cloud-based vendor with natural connections to cloud assets including Ariba and SuccessFactors.
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Doug Henschen is Executive Editor of InformationWeek, where he covers the intersection of enterprise applications with information management, business intelligence, big data and analytics. He previously served as editor in chief of Intelligent Enterprise, editor in chief of … View Full Bio
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