What is a Managed Service Provider (MSP)? 

A managed service provider (MSP) or contingent workforce solution (CWS), manages the temporary worker recruitment for an organization and is responsible for the end-to-end management of the contingent workforce—from supplier management and strategic workforce planning to contractor care and offboarding. 

SRG’s Expertise  

One of the most effective ways a business can successfully manage its contingent workforce is by calling on the expertise of a third-party solutions provider—particularly one with a dedicated account management team, an optimized vendor management system (VMS), and a focus on control and cost savings. 

In the recruitment industry, the term ‘MSP’ can refer to either a managed service program or a managed service provider. The difference between the two is that a managed service program is a contingent workforce solution (CWS), while a managed service provider is a specialist who delivers this solution.  

In other words, ‘managed service program’ and ‘contingent workforce solution’ can be used interchangeably to describe the service offered by a managed service provider like SRG. To avoid further confusion, we’ll stick to full terms from here on out. 

  

What are the core pillars of a managed service program or contingent workforce solution? 

By using a vendor management system, a robust managed service program provides complete oversight into the status of each contingent worker at your company—optimizing contingent workforce management and driving performance through people, processes, and technology. The core components of a managed service program include: 

  • Management of the non-permanent workforce (timesheets, payroll, etc.) 

  • Qualified pools of talented candidates 

  • An efficient recruitment process 

  • Supplier management 

  • Contract management 

  • Candidate selection 

  • Data-driven analysis 

  • Invoice management 

  • Frequent progress reports 

  • Business reviews 

  • Payrolling 

  • HR management 

  • Metrics dashboard 

  

What are the benefits of a managed service provider or contingent workforce solution? 

In an increasingly competitive contingent talent market, turning to a managed service program brings several key benefits to a business. 

  • Control - Hiring managers can easily acquire strong talent thanks to streamlined, standardized processes across all suppliers—driving down time-to-hire. 

  • Visibility - A tailored VMS that provides regular reporting and a clear audit trail that will give you oversight of the entire contingent workforce. 

  • Compliance and risk mitigation - With external experts managing all legislative and governance requirements, you’ll be brought up to speed on compliance best practices and ensure your business is fully compliant. 

  • Supply chain efficiency -   By running all contractor and supplier engagements through a single trusted provider, you’ll significantly reduce administrative burden. 

  • Agility - With the experience of a managed service provider to call upon, you can better respond to market shifts and improve efficiencies—making your organization more agile in the process. 

  • Cost savings - A managed service provider will secure substantial cost savings through exercises such as supply base reduction and staffing benchmarking. 

  • Scalability -  Working with an extensive supplier base, a managed service provider can find you alternative sources of talent when your supply chain fails to deliver—enabling you to scale your program up or down according to your immediate business needs. 

  • Governance -  Ensuring internal mandating of rates, compliance, and processes. 

Utilizing SRG’s MSP program is a win-win for businesses with a sizeable temporary workforce. By building relationships with your business users to understand your organization's ins and outs, our dedicated team of industry experts manages your suppliers, sources top talent, and drives best practices on your behalf. 

Is an MSP solution right for my business? 

While contingent working has grown at a phenomenal pace in recent years, finding top contingent talent with the most critical skills is an increasingly costly and time-consuming process. With contingent workers (i.e. non-employees) making up 40% of the workforce, being able to attract the best talent is crucial. 

If your organization has a medium-to-large contingent workforce, a managed service program is the ideal solution. Whether you’re looking to improve visibility, compliance, or control or simply want a fresh recruitment strategy with a new partner, SRG can build a solution that works for your business. 

Managed service provider solutions don’t work for every business, particularly those without sizeable contingent workforces. If you’re a customer with a smaller contingent workforce, one of our other recruitment services may prove to be a better fit. 

To evaluate our MSP solution to see if it is a fit for your organization, Contact us today.