How to enable the extended workforce without straining the enterprise

Modernizing external workforce management with automation and centralized technology enhances security, efficiency and competitiveness.

In brief

• Modernizing external workforce management with automation enhances operational efficiency and strengthens security against potential risks.
• Organizations face growing challenges in managing external workers, requiring a strategic approach to streamline onboarding and access control.
• Embracing technology partnerships and data-driven policies is essential for effectively managing an external workforce and mitigating compliance gaps.

Organizations today face growing challenges in managing their external workforce. Imagine a utility company responding to widespread outages after a natural disaster. It needs to quickly onboard contractors to restore power, but manual onboarding processes and disjointed systems delay deployment. Or consider a retailer during peak holiday shopping season. Temporary workers require immediate access to store operations systems, but outdated processes lead to inefficiencies, frustrated workers and potential security gaps.

These challenges aren’t unique to utilities or retail. In industries like health care, oil and gas, and supply chain operations, contractors, vendors and contingent workers are critical to meeting business demands. Yet traditional approaches to managing their access to systems and data often fall short. Manual processes, limited visibility and disjointed systems result in delays, inefficiencies and vulnerabilities that can ripple through the organization.

As organizations increasingly rely on third-party workers — 26% now manage over 250 vendors (The state of third-party risk management by Cyentia Institute, 2024), a figure that has doubled in just one year — the need for a more effective solution is urgent.

Technology drives security, efficiency

Managing access for external workers is inherently complex, as each role requires specific access permissions that must be updated as roles evolve. In fact, 51% of organizations have experienced a data breach caused by a vendor (Drata Report – Risk Trends Report, 2024), underscoring the need for robust and secure third-party access control and governance.

Inefficiencies extend beyond security risks, as it takes an average of 283 days to identify and contain breaches involving third-party storage (Cost of Data Breach Report 2024). Organizations that fail to modernize face high operational burdens, increased compliance gaps and significant delays in resource deployment. A strategic approach to external workforce identity management is imperative to keep businesses secure, efficient and competitive.

Managing an external workforce effectively requires a strategy that leverages automation, technology and visibility. Automated, policy-based processes reduce errors, speed up access provisioning and eliminate redundancies, leading to greater functional efficiency.

Centralized technology provides comprehensive visibility of identities, simplifying administration and improving the user experience. Real-time dashboards offer insights into access permissions. This enables organizations to identify and mitigate risks such as stale credentials or unauthorized access and lessen the risk of a breach. Additionally, data-driven policies allow for adjustments to access permissions based on contextual factors like role changes or updated certifications.

By taking these proactive steps, organizations can address current challenges and build a stronger framework for managing their external workforce.