Freelancer Management Software (FMS) Market Size, Share, Growth, And Industry Analysis, By Type (Cloud-Based, On-Premise) By Application (Large Enterprises, SMEs) and Regional Forecast To 2031

Updated On: 29 April 2024

Freelancer Management Software (FMS) Market Report Overview

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global freelancer management software (fms) market size was USD 3912.7 million in 2021 and market is projected to touch USD 16045.23 Million By 2031, exhibiting a CAGR of 15% during the forecast period.

The COVID-19 pandemic has been unprecedented and staggering, with the freelancer management software (FMS) Market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

A freelance management system (FMS) is a digital platform used to manage human resources and freelancers who are not directly employed members of your company. It is often cloud-based and promises to handle everything from project management, invoicing, payments, and tax filings to recruiting people. It's a method frequently employed by marketing, finance, and human resources departments to efficiently manage individuals and outside initiatives. Freelancers from all over the world may locate work and get paid on freelancing platforms, which serve as a central gathering place for all independent contractors. Freelancers can build a profile on Freelance Platforms, showcase their body of work, and communicate with employers. Since they offer a technology, product, or service that generates value by permitting direct contacts between two or more distinct sides, in this example, between freelancers and customers, freelancing platforms may be regarded as multi-sided platforms (MSP). Three main actors commonly make up freelancing platforms: platform owners, who offer the infrastructure for mediating work, freelancers, who take on and submit work in exchange for payment, and buyers, who request tasks be done in exchange for payment.

The market's expansion may be ascribed to the rising demand for Freelance Management Software from Large Enterprises and SMEs throughout the world. The research offers information on the significant market prospects for freelance management software at the national level. A detailed cost, segmentation, trend, regional breakdown, and commercial development of the major important players internationally for the anticipated time are also included in the research.

COVID-19 Impact: COVID-19 viral outbreak hindered supply chain hence affected market growth

Since the COVID-19 viral outbreak in December 2019, the disease has spread to nearly every country in the world, and the World Health Organization has declared it a public health emergency. The market for freelancing management software will be significantly impacted by the global consequences of the coronavirus disease 2019 (COVID-19) in 2021. One effect of the COVID-19 outbreak has been a significant slowdown in the supply chain, stock market volatility, a decline in business confidence, rising public panic, and uncertainty about the future. Other effects have included flight cancellations, travel bans and quarantines, restaurant closures, restrictions on all indoor and outdoor events, declarations of states of emergency in over 40 countries, and restrictions on all indoor and outdoor activities.

Latest Trends

"Growth of The Market Is Driven by Rising Demand for Freelancers"

The growing need for freelancers is one of the elements influencing the sector. This is due to the fact that many big corporations and small- and medium-sized organizations (SME) like using independent contractors for their projects. This helps firms avoid the costs related to hiring a full-time employee.

Freelancer Management Software (FMS) Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Cloud-Based, On-Premise. Cloud-Based is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into Large Enterprises, SMEs. Large Enterprises will be the dominating segment.

Driving Factors

"Numerous Advantages and Fewer Restrictions Act as Market Drivers "

Being a freelancer has advantages. The time allotted to a freelancer is fixed. He may choose this time period whenever he wants. As a result, more workers are opting for part-time and independent work. They are also not constrained in their corporate operations. As a result, there are now more independent contractors, which has contributed to the growth of this industry.

Over the predicted period, demand for freelance management platforms is expected to increase as a result of the wide range of services provided by freelance management, including contract administration, consolidated billing and invoicing, live chat, and others. During this projection period, it is also projected that the rise in the replacement of vendor management systems with freelance management systems would propel the growth of the worldwide market for freelance management platforms. Market participants in the Freelance management platform market may anticipate enticing development potential in the future due to the expanding demand for Freelance management platforms on the global market.

"Rising Demand for Change in Vendor Hiring Procedures Drives Market Expansion"

The desire to replace vendor recruiting procedures is driving up demand for freelancing platforms. Businesses save time on vendor searches and negotiations by integrating freelance management tools. Some of the important services offered by freelance management platforms that are projected to improve the market for freelancing platforms in the upcoming years include payroll administration, invoicing, convergent billing, and contract management. Digital-age professionals who freelance may do practically anything without having to please the established gatekeepers. The amount a worker may make when freelancing is unrestricted. Another factor driving the use of the freelancing platform is the ability of individuals to select the working hours that work best for them. Virtually everyone in the world may work as a freelancer. Employees may work from wherever they choose when they freelance. It offers employment flexibility. the market in the upcoming years.

Restraining Factors

"Lack of security is limiting market expansion"

However, a job as a freelancer is seen as being unstable. A person's decision to work a full-time job is mostly the outcome of his or her way of thinking; specifically, because of the benefits offered. This constraint applies to this market. The high upfront costs associated with implementation and integration are the key concern that is projected to have an influence on the growth of the worldwide market for freelance management platforms.

Freelancer Management Software (FMS) Market Regional Insights

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"North America will dominate the market Throughout the projection period"

Based on geographical divisions, the market is divided into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. North America now owns the greatest market share in this industry, and it is predicted that over the course of the anticipated period, its market share will rise at a noteworthy CAGR. Europe and Asia-Pacific follow North America in terms of market share.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Kalo Industries (U.S.)
• Shortlist (U.S.)
• Upwork (U.S.)
• Freelancer.com (Australia)
• WorkMarket (ADP) (U.S.)
• Guru.com (U.S.)
• OnForce (U.S.)
• Field Nation (U.S.)
• CrowdSource (U.S.)
• Expert360 (Australia)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.