Disclaimer: this article is a translation from the original french piece published by Décision Achats.
Used well, umbrella contracting (portage commercial, i.e., supplier intermediation) is a strategic lever, a vector of agility, and above all a revealing indicator of your organization’s maturity in supplier management.
It’s common for business teams to bypass the panel to secure the experts they need elsewhere. Umbrella contracting then becomes a reliable, compliant solution by engaging a partner whose role is to contract with non-panel suppliers. It suffers from an ambivalent image—often seen as a necessary evil—and some buyers push it to last-resort status. Yet it offers many advantages. It can, for example, address demanding operational needs or enable off-panel tests. Ultimately, it shines a light on non-referenced talents already at work in the company and raises a key question for procurement: how do we manage them intelligently?
Procurement’s role is to organize the use of umbrella contracting by setting clear processes for when and how to use it. They can no longer control 100% of professional services spend by simply prohibiting its use; they must offer controlled flexibility so business teams can benefit from this mechanism.
A mechanism with undeniable advantages
Umbrella contracting addresses a clear need: contracting easily and compliantly with a non-referenced provider. In some domains, the best experts sit outside traditional panels; this tripartite device lets teams seize the opportunity to work with rare—sometimes critical—experts for project success. It creates meaningful room to maneuver. Properly governed, umbrella contracting can play several strategic roles:
– Test a new supplier before potential onboarding into the panel—an extra layer of assurance when building the referenced panel.
– Continue working on ad-hoc topics with a firm that exited the panel. If a company no longer belongs in the panel, some consultants may still remain on a case-by-case basis via umbrella contracting.
– Cover ultra-technical or one-off needs that formal paneling cannot address.
– Break cascading subcontracting to gain transparency and economic efficiency.
Agile and reliable—provided it’s used properly
Umbrella contracting is not a shortcut to paneling. It should not enable business stakeholders to sidestep procurement rules they deem too constraining or don’t fully understand. Nor should it replace rigorous competition—otherwise costs may spiral. Finally, it must not become a way for experts to multiply off-panel engagements by preference, which would erode control over panels and potentially create dependency risks.
Its proper use rests on a simple rule: umbrella contracting is a release valve, not a default alternative. As a threshold, 20% of contractual flows via umbrella contracting should not be exceeded. If it is, your panel is either incomplete (it doesn’t cover real needs) or misunderstood (operations are bypassing it). That’s why structured reporting on umbrella contracting becomes a key procurement KPI. It reveals what the panel doesn’t cover, flags blind spots in cascading subcontracting, and highlights needs that the referenced panel addresses poorly. In reality, it is a revealer of panel performance. For instance, if umbrella contracting is disproportionately high on data roles, your traditional panel may lack sufficient suppliers with that expertise.
Toward a broader, higher-performing procurement vision
Marketplace, umbrella contracting (portage commercial), portage salarial (employment umbrella), consulting, temp staffing… a modern procurement function must orchestrate all contractual channels to balance flexibility and control. Leveraging all channels broadens sourcing options, especially for scarce skills.
Today, nearly everyone on the market offers umbrella contracting. But the real challenge isn’t just doing it—it’s doing it intelligently. The right intermediation partner isn’t always the one with the lowest markup; it’s the one who understands your needs and supports you with reporting, compliance, and panel strategy—with high service quality.
Disclaimer: this article is a translation from the original french piece published by Décision Achats.
