Circle8 - From Market Change to Strategic Market Position

Discover how Circle8, an established player in the Dutch IT staffing market, transformed the introduction of the Future of Pensions Act (WTP) into a strategic opportunity. Through a systematic approach from market validation to commercial viability, Circle8 developed a robust WTP pension proposition that not only delivered higher margins but also fundamentally strengthened their market position in a growing niche market.

Challenge

Circle8 anticipated the complex WTP transition and the expected peak in demand for qualified IT and data specialists in the pension sector.

Approach

Systematic validation through three sprints - market confirmation, feasibility assessment, and commercial viability - combined with intensive co-creation and market experiments.

Results

Successful market entry with strategic positioning as a frontrunner, improved revenue model with higher margins, and a proven framework for future market expansion.

About the client

Circle8 is one of the largest players in the Dutch flexible employment market, specializing in IT staffing and financial services for independent professionals. The company has established itself as a renowned party in the personnel market with strong expertise in IT recruitment and additional financial services such as administration and bookkeeping for freelancers. From their Dutch base, Circle8 serves various sectors with a focus on high-quality IT specialists and professional services.

The Challenge: Anticipating System Reform

With the introduction of the Future of Pensions Act (WTP) on July 1, 2023, the pension sector faced a fundamental system change where collective guarantees give way to personal pension pots. This change brought significant challenges for pension administrators, such as complex IT and data migrations, tight timelines, and an urgent need for specific expertise.

Circle8 identified this development early and anticipated the expected peak in demand for qualified IT and data specialists. The core problem was strategic: how can an established player in IT staffing transform this market change into a concrete business opportunity? The challenge lay not only in identifying the opportunity but also in systematically validating and developing a new proposition that fits Circle8's capabilities and ambitions.

Our Strategic Approach: From Market Validation to Commercial Viability


Business Models Inc. developed a trajectory with Circle8 that mapped market validation, feasibility, and commercial viability through three sprints respectively. The process was characterized by intensive collaboration and co-creation, where each step was supported by concrete market and customer insights.

This way of working was new for Circle8. With BMI's approach and knowledge from external specialists in the pension sector, we started working from problem identification in the market towards a solid development of a WTP pension proposition.

Sprint 1: Sprint 1: Marketvalidation & Opportunity Analysis

The first phase began with a fundamental question: does the problem we see actually exist in the market? Our team dove deep into the world of pension administrators and funds to understand where exactly the pain points lay. Through conversations with sector experts, we discovered not only that there was a problem, but also how urgent and specific the need was.

In parallel, this qualitative insight was confirmed by a broader market study. The results confirmed what the interviews had already suggested: the WTP transition indeed created a specific demand for hybrid IT pension specialists. At the same time, an analysis of the competition revealed that existing parties were not yet effectively serving this niche, giving Circle8 a first-mover advantage.

Sprint 2: Feasibility Assessment & Capacity Building

With this market validation, the team turned to the question: can we actually deliver this? This phase focused on matching market demand with internal capabilities. By analyzing the demand for specific skills, Circle8 gained clear insight into where their offering should align precisely.

Simultaneously, a thorough inventory was made of Circle8's existing network and capabilities. This exercise revealed both strengths and development points, leading to concrete action points for capacity building. It became clear that with targeted investments in training and network expansion, Circle8 could indeed deliver on the promise.

Sprint 3: Business Case & Market Confirmation

The third phase focused on the crucial question: is it commercially viable? Here, the strategic focus came to lie on confirming both the supply side and financial attractiveness. A targeted exploration among independent professionals showed that there were sufficient talented specialists who wanted to specialize in the pension domain.

Various growth scenarios were also calculated, where both cautious and ambitious forecasts were prepared. The outcomes confirmed that the pension proposition was strategically and commercially interesting, with significantly better margins than traditional IT staffing.

Concrete Results: From Validation to Market Position


Our systematic approach delivered concrete and strategically valuable results that realized Circle8's growth potential in a new sector.

Strategic Market Positioning


Circle8 secured a position as a frontrunner in a growing niche, enabling them to differentiate from generic staffing agencies and gain access to a sector with stable, long-term contracts. This proposition was tested through experiments with potential clients and IT professionals on desirability, feasibility, and viability.

Improved Revenue Model and Operational Capabilities


The new proposition opened doors to higher margins through specialist positioning, while simultaneously reducing dependence on standard IT services. A brochure was created based on a survey with IT professionals, three different business models were developed in various business cases based on H1, H2, and H3 innovation. A common thread was also found in the description of job profiles through the creation of a job profile format that can be deployed at the HR departments of pension administrators.

Future-Proof Organizational Development


By developing pension expertise, Circle8 gained not only a new service but also a methodology to proactively identify and utilize new market niches. The focus on a specific sector created network effects where satisfied clients became natural referral sources for other pension organizations. The process provided Circle8 with a proven framework for innovation and market expansion, enabling future opportunities to be utilized faster and more effectively.

"We now have a dedicated team for the pension proposition, which has recently been supplemented with new experts who immediately prove their value. The sessions were effective because they bridged the gap between daily business practice and the required theoretical foundation."

— Vivian Minten, CEO Circle8

The Next Step in Your Strategic Transformation

Circle8's transformation illustrates how systematic market validation and co-creation can deliver concrete growth results in new sectors. Through intensive collaboration and proven methodology, we helped an IT staffing company conquer a strategic position in the complex pension market.

The success of this project lay not only in the outcomes but especially in the process. Business Models Inc. believes in the power of co-creation. Not devising strategies from an ivory tower, but shaping the solution together with the client and their stakeholders. This approach was deliberately structured step-by-step, where each sprint learns from the previous one and adjusts where necessary, without losing sight of the big picture.

Is your organization also facing the challenge of transforming market changes into strategic opportunities? Business Models Inc. helps medium to large Dutch companies systematically develop new market propositions that enable sustainable growth.

Contact Business Models Inc. today to discover which market opportunities are within your reach. Your strategic transformation begins with one conversation.

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Rick Zeilstra
Rick Zeilstra