Last week, Randstad Holding announced its acquisition of twago, the largest freelancer marketplace platform based in Europe (founded in 2009 in Berlin). The acquisition is a significant event for a number of reasons, not the least of which is it being the first time a staffing and workforce solutions company has acquired a true online freelance marketplace.
Online work intermediation platform (WIPs) models are working their way into the already established contingent workforce supply chain, adding new ways to efficiently source and engage talent. This acquisition is a further evidence of that trend.
The acquisition has been reported as a win-win for Randstad and twago. “For the company, this is a great step forward,” twago Co-Founder and CEo Thomas Jajeh told Spend Matters. “Randstad is a great brand to be working under,” and in the talent market, “it creates credibility and trust” that a relatively small company could not achieve on its own.”
Jajeh also noted how being a part of Randstad will now allow twago to extend its pure freelancer marketplace model to a model that will give medium-to-large enterprises the ability to source and engage a new, growing population of freelancer talent but with the assurance that comes with being a Randstad customer.
From Randstad’s perspective twago’s platform and reach “can provide clients with enhanced access to freelancers,” Chris Heutink, member of the executive board at Randstad, said in a press release. The twago architecture “can be easily adapted to create client-branded freelance recruitment platforms” in Randstad regional and other recruiting and staffing organizations and integrate clients’ existing vendor management systems. “As a result, employers will be able to source talent more quickly and cost-effectively,” Heutink added.
Paul Jacquin, managing partner at Randstad Innovation Fund and a twago board member, also echoed that twago could be leveraged in a number of different ways with Randstad, and mentioned some innovative use cases under consideration. Besides noting that the acquisition by Randstad will give twago much more scalability and market visibility and give Randstad customers access to a whole new population of talent, Jacquin also spoke to the importance of bringing more technology capabilities and expertise into Randstad.
Randstad CEO Jacques van den Broek summed it up: “The acquisition of twago follows our success with RiseSmart, the first step towards offering new services through digital transformation. The addition of technology and business models that enrich our value proposition to clients and candidates is part of our ‘tech & touch’ strategy.”