The human capital management platform Workday is finishing the year in the same way it started the year – with a big acquisition to boost its platform’s firepower.
Workday is purchasing Vndly, a contractor and vendor management system that helps handle non-employee workers.
The price tag was $510 million.
“VNDLY is at the forefront of the vendor management industry with an innovative and intuitive approach,” said Pete Schlampp, Workday’s chief strategy officer. “The powerful combination of our technologies and talent will help customers better manage their evolving workforce dynamics, helping them keep pace with today’s changing world of work,” Schlampp said in a statement.
The Vndly system covers a broad range of needs for the workforce, spanning outsourced contractor management to individual worker management. Overall, it provides companies with a holistic view of the workforce – whether it be employees or non-employees.
What we’ve been seeing is the general trend for vendor management systems to connect with contracting systems, which are managed by IT while labor managed by HR.
Vndly was integrated into the HCM platform of Workday back in August, and is expecting to finish the acquisition at the end of 2022.
Workday has already invested in a similar vendor management platform, Utmost Software, and is already deeply integrated in Workday.
The purchase of Vndly has strengthened the Workday platform and improved its positioning in relation to its rivals.
“Who wins the race will depend upon a number of factors,” said Arkadev Basak, VP at research firm Everest Group, which leads Workday’s talent practice, “especially the level of integration.”
This includes the ability of having a holistic system of record in order to manage the entire workforce and spending of a business.
For a few years now HCM systems have been integrating non-employee workforce management systems. Other milestones included ADP’s acquisition of WorkMarket back in 2018.
“One trend that has been accelerated by the demands of the pandemic,” said Aneel Bhusri, co-CEO of Workday, “is the future of work, which requires new ways of thinking about workforce composition and how to manage different types of workers.”