“Managed Service Program (MSP) suppliers have evolved and offer a wide array of services to clients to support the sourcing of contingent workers as part of a program approach.
“MSP providers are no longer expected to just support supplier management, SOW administration, compliance and pay rolling / billing, but are increasingly offering talent sourcing strategies that support wider business functions as well as look at the total talent landscape in a broader view. This is supported by a growing access to analytics data as well as new opportunities to leverage workers through newer online staffing and Freelance Management Systems (FMS).”
Staffing Industry Analysts (SIA) report “MSP Market Developments 2016” updates the current market size, participants and trends. With global annual spend exceeding US $100B and growing strongly, all industry participants need to be aware of the MSP environment and why larger corporate organisations are buying these services.
When surveyed, for the majority of buyers, the top six drivers for using MSP services are similar to those that drive Vendor Management System (VMS) adoption, however MSP services are used in addition to VMS products where organizations lack internal capability to support program change and delivery and also look to minimize legal risks:
- improved compliance
- cost reduction
- increased quality and performance
- support in implementing technology
- supporting peaks and troughs
- ability to scale
- assisting with significant organisational changes
Ability of MSP vendors to address organisational labour
Each of the MSP’s in the market have a particular focus – some on direct sourcing, some have a blended MSP/VMS focus, some are supply chain oriented, and some have an industry vertical or mid-market focus.
The MSP model and the role played by MSP’s will continue to evolve. “Particularly for hard to find resources, SIA sees direct sourcing using Contingent RPO models becoming a more popular approach to acquiring talent in the coming year. Contingent RPO can best be supported where forecasting and workforce planning are actively managed in an organization and for many companies the benefits can be significant.”
Corporate Members
Corporate members can download a copy of the report directly. The report offers a complete summary of the managed service program.
HHMC Global works with owners and leaders of staffing and recruitment businesses on market valuations, buy/sell transactions, growth strategy and advisory matters. If this article raises issues relevant to your business, we would be pleased to continue the conversation.
