Freelance Workers: The 'Next Generation' VAR Workforce?

Stephen DeWitt
Stephen DeWitt

What does the VAR of the future look like, then? Are they 100 percent freelance? 50 percent?

I don't think it's 100 percent freelance, but I think the percentage of non-W2 employees inside of the VAR is going to skyrocket. As a general percentage of their workforce, it's going to depend wildly on the nature of the VAR. If the VAR's primary purpose is as a service entity, I think the number is going to be massive, way north of 50 percent...Maybe even 100 percent on demand. I think when you start getting more into the area where you're going to be marrying curated labor with an engagement model, meaning that I'm doing multiple things for an end customer...I think you'll probably have a veneer of engagement, account management, territorial representation, that will probably remain W2, but a lot of the value add will be on-demand.

Do you have a sense for what the market penetration for freelance is today?

Let's put it this way – the answer is a little bit of a yes and no...On demand has been around for a while, it's just been un-tooled. They were driving cabs before Uber. Uber came along and what Uber brought to the table was the underlying system that makes Uber happen and how it takes all these disparate people and their cars and turns that into that beautiful experience that you use on your iPhone.

Is this change being made possibly by managed services really hitting its stride in the market?

Yes. I don't think there's a lot of crazy, brilliant visionary stuff going on here. I think this, like most things, it's time - right time, right place... We're that next generation, where having repositories of people in databases is about as valuable as having a repository for people in databases. I need to do something to that. I need to translate that into the on-demand dynamic of task in a world that is highly regulated and has a lot of rules and requires certain curation.

Let's say you're a VAR and you're trying to figure out if freelancers are the right option - what are some common use cases?

Of all of the markets that are out there, I think the biggest no-brainer is the VAR channel and the tech world for a couple of reasons...We have companies that are doing digital signage and they want to create a work market around a certain class of digital signage...I think the VAR community, and we're certainly seeing this, it's a no-brainer.

One thing a lot of VARs talk about is a general shortage of talent in the industry. Is this something that would help with that?

I think we're entering an era where everybody is in essence is incorporated, everyone in the workforce is incorporated and you are your own store front... In the new world order, everyone is their own incorporation. You can choose to be part of the on demand economy or you can choose not to be part of the on demand economy, but the simple reality is there is going to be a lot of on demand economy out there...This is going to move all the way up through the enterprise stack, through all the enterprise job personas and decisions will be made on how much of that remains traditional W2 labor and how much of that moves to an on demand model. It's coming and it's coming like a tsunami and it's not going to turn back...that era is long gone.