Upwork shifts from talent acquisition to talent access by buying Bubty and Ascen

Hot off the heels of last week's M&A news (where SAP announced plans to acquire SmartRecruiters) the HR worlds sees yet more acquisitions.

This time, Bubty, a workforce management platform, and Ascen, a global compliance and EOR, are set to be acquired by Upwork, a platform that connects freelancers and companies.

UNLEASH explores more about these deals, and how it will impact the HR tech market.

Upwork on offering customers in-demand benefits

The two deals are expected to help Upwork build a stand-alone enterprise-focused business, in a bid to expand its market reach and to continue its evolution from talent acquisition to talent access.

This move, therefore, highlights a shift within the company's strategy to build a comprehensive, enterprise-ready solution, rather than focusing on connecting clients and freelancers.

Additionally, the acquisition aims to help the San Francisco-based company expand its offering to independent contract workers, opening opportunities to compete in new areas of the corporate staffing market.

Hayden Brown, Upwork president and CEO, explained that many of today’s providers “force” customers to choose between flexibility and compliance, speed and scale.

However, by integrating this new capability, Upwork is “refusing to compromise,” and instead offers customers in-demand benefits.

The deal comes after Upwork's recent launch of more than 75 new features, including AI-enhanced video meetings, instant interviews, and a reimagined job post experience.

Upwork will support all major types of contingent work, (what do these acronyms mean?) spanning ICs, W-2s, staff augmentation, and managed services.

It also aims to offer a single, tech-forward solution that integrates with existing Managed Service Provider (MSP) and Vendor Management System (VMS).

In a statement, Bubty Co-Founders Benjamin Schriel and Lee Willoughby said: “To our clients, users, fans, and friends: Thank you for giving us your trust before we had it all figured out.

“For growing with us. For pushing us to get better. You made this journey worth every second. And we’re utterly grateful for working with you.

“To our team: Thank you for always going all-in. For building, shipping, thinking, rethinking, caring, and carrying us through.

You are the heart of this company, one full of grit, kindness, and ambition. You've made this real. You gave your time, your talent, your late nights, and your belief. Nothing Bubty has achieved would exist without you.”You are the heart of this company, one full of grit, kindness, and ambition. You've made this real. You gave your time, your talent, your late nights, and your belief. Nothing Bubty has achieved would exist without you.”

Currently, Upwork's enterprise division brings in around $100 million of its $750 million annual revenue, but the company has shared much bigger plans.

In fact, it’s setting its sights on the $650 billion global contingent workforce market, with the goal of positioning itself as a major provider of comprehensive talent solutions.

More information on the acquisitions and the new stand-alone business will be unveiled later in the year.