Managed Services Program (MSP) partnerships are custom solutions wherein a company outsources the management of their contingent workforce. Managed Services Program partnerships drive cost savings, process efficiencies and improved quality of hire in contractor management. On average, MSP partnerships can deliver 10-20 percent cost savings in the first year. However the benefits of MSP stretch far beyond cost savings.
1. Transparency and control
Losing oversight and control of a contingent workforce is the most common challenge experienced by our clients. Gaining back control and creating a transparent and consistent extended workforce framework is also the most important benefit of an MSP partnership. Through a systematic, strategic, and tailored approach, your MSP partner will streamline the end-to-end process to ensure a reliable ‘one-source-of-truth’ is the foundation of your contingent workforce.
2. Cost savings
Partnering with an MSP can bring significant cost reductions to your contingent workforce management. We delivered 380k AUD in cost savings for our client in six months. Depending on the model, you either centralize your workforce management with one vendor or let the MSP handle vendor contracts. Additionally, managed services program providers can reduce time-to-fill and minimize productivity gaps.
The benefit of an MSP partner stretches far beyond cost savings. Improved processes, unparalleled scalability and partnership, and the peace of mind that comes from entrusting operations to expert hands is transformative. ”
– Nicki McCulloch, Regional Director of Client Solutions APAC
3. Reduced risks
Compliance is a critical aspect of flexible talent management. An MSP model means your partner will take on the risk and compliance management of your contingent workforce. A high-quality MSP partner will be well-versed in regulatory requirements and can ensure that all aspects of your contingent workforce remain compliant. They’ll also provide guidance and implement processes to mitigate risks in your hiring process, tenure management, and policy adherence, regardless of location.
4. Increased efficiencies
Utilizing automation and advanced recruitment technology platforms, your MSP partner also streamlines candidate sourcing, onboarding, time and attendance management, and invoicing. This ultimately creates an efficient ecosystem for your contingent recruitment and employment workflows, giving your team back precious time to focus on more strategic tasks.
5. Contractor and hiring manager experience
An MSP provides access to a team of talent experts with in-depth knowledge of your industry and unique requirements. As part of your custom solution, they will streamline your end-to-end contingent workforce processes and source top-quality candidates through expert talent strategies. With expertly crafted processes and strategies, you’ll soon recognize elevated experiences for both contractors and hiring managers.
6. Scalability and flexibility
An MSP provides the agility and flexibility your organization needs. It adjusts resources as needed, whether for rapid growth requiring hiring or scaling back during slower periods, ensuring you have the appropriate talent when it’s needed most.
Is MSP right for you?
Managed Services Programs offer numerous benefits. From driving process efficiencies to risk mitigation, MSPs play a key role in contingent workforce management. Leaving your flexible talent management in the hands of trusted experts allows you to remain focused on your core business. Learn more about our Managed Services Program service or talk to one of our talent experts today.
