In a recent move to expand its workforce management offerings, Workday has entered an agreement to acquire VNDLY, a cloud-based external workforce management and vendor management software, for $510 million. The deal is expected to close in January 2022. 

In acquiring VNDLY, Workday will be able to provide companies with an all-around workforce solution to manage all types of workers—salaried, hourly, contractors, or temporary—according to a statement from the company. 

Why is Workday acquiring VNDLY?

VNDLY is a vendor management software that streamlines the management of contingent workers. Founded in 2017, VNDLY designed its software to integrate with other business platforms, including those that manage human resources, procurements, and finance.

“As organizations 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,” said Workday chief strategy officer Pete Schlampp in a statement.

“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.”

Founded in March 2005, Workday has created a multitude of products for managing HR and finance processes. These products can be found on G2 in categories such as Financial Management, Human Capital Management, Enterprise Planning, Spend Management, Talent Management, Payroll and Workforce Management.

Trends in the vendor management software market

VNDLY is a part of G2’s Vendor Management category, which is designed for software products that provide a centralized organization platform for communication, projects, and payroll management for businesses employing laborers such as vendors, contractors, or freelancers. 

Over the last two years, the number of reviews from users at small and mid-market businesses has outpaced those coming in from enterprise businesses, suggesting a growing interest in these products in those smaller market segments. 

With the ability to oversee the entire vendor relationship, from hiring to tracking time to paying, vendor management solutions can save small or mid-market businesses time and money in managing relationships with recurring vendors. 

With companies worldwide rethinking how to manage their workforces, it should be an exciting time for changes in the vendor management and workforce management spaces.