The acquisition is expected to allow Workday to offer a unified workforce optimisation solution for organisations to manage all types of workers
US-based enterprise cloud applications provider Workday has signed an agreement to acquire cloud-based external workforce management technology firm VNDLY for $510m.
The deal is expected to enable Workday to provide organisations with a unified workforce optimisation solution that helps in managing all types of workers, including salaried, hourly, contingent, and outsourced.
Combined with Workday Financial Management and Workday Human Capital Management, VNDLY is expected to help organisations gain a comprehensive view of all workers.
The unified solution allows organisations to plan, execute, and analyse their total workforce, by using Workday to manage the end-to-end process for permanent employees and unifying the external workforce data from VNDLY.
By providing a unified system of record to manage the entire workforce, the combination of Workday and VNDLY is expected to help in enabling enhanced collaboration with HR, finance, procurement, and functional leaders for workforce planning.
With a unified solution from the two companies, organisations will also be able to gain insights into headcount, projects, benefits, compensation, contingent spend, and their total workforce cost.
Also, Workday Prism Analytics and Workday Adaptive Planning provide an insight-driven approach for organisations to plan and analyse total rewards or contingent worker spend.
Workday chief strategy officer Pete Schlampp said: “As organisations expand the definition of their workforce to meet growing business and talent demands, they need solutions that provide a holistic view of all worker types — including contingent workers — so they can better plan for and meet the great opportunity in front of them.
“VNDLY is at the forefront of the vendor management industry with an innovative and intuitive approach. 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.”
The combined solution from Workday and VNDLY will also allow organisations to take a more collaborative approach to sourcing and hiring practices, helping them in responding to the increased competition for talent and manage labour shortages.
Under the terms of the agreement, Workday will invest in VNDLY’s expansive managed services provider network to provide critical service capabilities to customers.
The transaction is expected to be completed in the fourth quarter of Workday’s fiscal year 2022, ending 31 January 2022.
It is subject to the satisfaction of customary closing conditions, including required regulatory approvals.