Systems built for full-time employees are being re-engineered for the growing extended workforce. That was one of the key insights shared by David Francis, Global Head of Research at Talent Tech Labs, during a recent webinar on how technology is reshaping contingent workforce management. For many companies, this shift is also revealing how fragmented their own processes still are — from onboarding and classification to payments and reporting.
A supply chain for talent
Francis described the extended workforce as a network of connected players—clients, managed service providers (MSPs), suppliers, and technology platforms—all working together to deliver talent.
Visibility, he explained, remains one of the biggest challenges because data often lives in disconnected systems. That lack of connection is something many HR and operations teams face when trying to manage flexible workforces without a unified platform.
“The biggest issue is fragmentation,” Francis said. “You have all these systems collecting data in isolation, which makes it hard to get a complete picture of the workforce.”
And as companies add more tools, he noted, the need for platforms built specifically for contingent labor continues to grow.
“These systems need to handle compliance, classification, and payments across multiple worker types,” he said.
He suggested we think of the extended workforce as its own ecosystem “with its own supply chain,” rather than just an extension of HR or procurement.
Smarter data and analytics
Many of these same visibility gaps are helping to drive the next wave of workforce analytics.
Francis said, “Traditional dashboards are being replaced by tools that let you ask questions of your data and get dynamic responses.”
He added that this shift is powered by large language models, which move analytics “from descriptive to conversational.”
The goal, he explained, isn’t more data—it’s better access: “The goal is clarity. It’s making the data accessible and actionable for the people managing these programs.”
And that same clarity is what workforce teams need to manage schedules, budgets, and performance across distributed teams.
More companies managing programs directly
Francis also pointed to a growing trend of companies taking more ownership of their contingent workforce programs.
“Enterprises are bringing functions like onboarding, payrolling, and compliance in-house,” he said. “That doesn’t eliminate the role of external partners, but it changes the balance. It’s a rebalancing of who owns what within the program.”
He described this change as driven by both technology and control.
“As automation improves, companies are realizing they can handle more of the work themselves without losing efficiency.”
In turn, he said, we’re seeing more organizations “rethink the role of MSPs,” as it becomes “less about replacing them and more about deciding where internal ownership makes sense.”
It also reflects a broader shift toward tech-enabled, in-house management of contingent workforces (something AllWork’s clients are prioritizing as they scale).
Read more: You Hired Them—Now What? Managing Onboarding in a Flexible Workforce
Automation and AI in workforce technology
Francis said automation is shaping more than just recruiting: The same tools that help screen and schedule candidates are also improving how teams manage onboarding, classification, and payroll at scale.
“These aren’t chatbots anymore,” he said. “They’re workflow-driven systems that can actually hold conversations, qualify candidates, and even schedule interviews.”
Still, he cautioned that success really comes down to how the technology is used: “So much of the outcome depends on execution: how it’s communicated, how prompts are written. Those details matter.”
For workforce management, automation works best when it reduces manual effort in onboarding, time-tracking, and compliance (without replacing human oversight).
Workforce boundaries are shifting
Francis said workforce planning is becoming more integrated across HR and procurement.
“The walls between full-time and contingent planning are starting to come down,” he explained. “We’re seeing contingent workforce strategy included in total workforce discussions, not managed as something separate.”
And this reflects how most companies already operate: “Almost every large organization today has a blended workforce,” he said. “Employees, contractors, freelancers, project-based consultants—it’s all part of one system.”
He described this integration as a positive sign of maturity in workforce management.
“When HR and procurement work together,” Francis said, “you get better visibility, better data, and better outcomes.”
Read more: How Data and Technology Are Reshaping Contingent Workforce Management
Connecting the systems that run the workforce
So, what happens even when hiring is slow? Francis said investment in workforce technology continues to grow regardless.
“AI solutions, contractor payroll, online talent platforms, and direct sourcing are all expanding,” he said. “These are the areas where we’re seeing real investment.”
He also emphasized that the key factor isn’t necessarily the technology itself, but how it’s used.
“The differentiator is not the tool—it’s the connection between tools. It’s how organizations govern their data and who owns it.”
After all, he explained, the extended workforce isn’t a new concept. What is new, however, is the clarity around how to manage it and have it truly become a core part of business strategy for organizations.
“It’s no longer a side conversation,” he said. “It’s part of how companies think about talent overall.”
As more organizations re-evaluate how they manage flexible teams, it’s clear that the need for connected systems (and clear visibility) will keep growing.
Want to see how AllWork brings visibility to your extended workforce? Schedule a demo to see how AllWork helps companies connect people, payments, and programs in one compliant platform.