In the context of recruitment process outsourcing, “managed services” refer to the supply and management of a contract workforce. This workforce includes task-ready contractors who can provide services either independently, or through a statement of work (SOW).
The phrase “managed services” is largely interchangeable with the phrase “managed service provider”, or MSP. Both terms are often used by talent managers and HR leaders.
An MSP typically refers to a specialist entity who manages contract services. For example, Hudson Talent Solutions is an MSP.
Weighing the advantages of managed services
When it comes to driving business growth, you might seek the services of an MSP if you:
- Urgently require gig workers and/or freelancers
- Need to ensure legal compliance at different levels
- Want to control vendor costs and mitigate contingent talent risks
Selecting the right MSP enables you to protect and strengthen your business in a multitude of ways. For example, sustainable business growth can be delivered with the turn of a talent tap. Managed services also help ensure your talent strategy aligns with local, national, and global employment laws.
When uncertainty looms, a robust contingent workforce empowers your business to pursue steady, sustainable growth. Relying (in part or in whole) on managed services means your business can scale up and down as needed. For both short-term and long-term objectives, a deeply embedded MSP solution grants access to a powerful talent pipeline.
The right MSP can also help you on-board and manage a pool of contingent talent. External support at this critical stage of delivery frees you to focus on other strategic business initiatives.
Managed services also ensure a greater degree of success from the start of a project. This helps achieve satisfaction both from the business and your contractors. On the business-side, high satisfaction rates can help ensure continued budget allocation. On the supply-side, keeping contractors engaged is also key, particularly as they evaluate your requirements and opportunities alongside others in the market.
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