Managed Services Programs 101 – Are You Ready?
The managed services program (MSP) for human capital management is a method proven to effectively and efficiently manage sources of talent feeding your contingent workforce program.
These days, with the expanding array of channels for talent acquisition—and so many organizations leveraging contract/non-employee labor—MSP is a strategy increasingly embraced by small to mid-sized businesses (SMBs).
If you’re a mid-sized operation looking to engage an MSP for contingent labor sourcing and management, here is some basic info on what managed services programs (MSPs) do and how they work.
What Are Managed Services Programs?
First, let’s define a Managed Services Program. An MSP is an outsourced contingent or statement of work (SOW) management service. The MSP brings proven processes, broad industry experience, and (often) technology to the tasks associated with supporting your organization’s temp, gig, direct-hire, or independent contractor sourcing and administration.
The MSP essentially manages the relationships with the vendors of each talent type on your behalf—helping absorb the administrative burden you’d carry if you were driving the process yourself.
MSPs also assume responsibility for all your contingent procurement and HR functions from requisition through settlement. They are a conduit between the supplier community and your organization, and they deliver deep insight into the process so that your programs are always up to date.
Benefits of MSPs
The primary benefits associated with using a managed services program for contingent labor commonly include:
- Access to staffing market expertise
- Improvement in process efficiency
- Effective use of technology
- Flexible program scalability
- Improved compliance with laws and regulations
- And most importantly, increased spend visibility and cost-savings.
Altogether, the benefits promised by using an MSP are a compelling argument in favor of engaging this strategy.
If you’re increasing your usage of contingent labor or if you’ve already been leveraging contract workers but want to improve your results, the MSP is a viable option. However, deciding if and when it suits your particular use case can be challenging, but nextSource is here to help with all your managed services program needs.
Why Choose nextSource?
Employing contingent workers can significantly benefit your company, but you might feel unprepared to address the financial, management, and regulatory issues involved with their use.
That is where nextSource fits into the picture. Having helped develop strategies and programs for numerous organizations of all sizes and compositions, we’re pretty experienced in helping make critical decisions about managed services program utilization. So much so that we wrote a highly regarded white paper to help clarify the concepts.
Click here to download the nextSource white paper, “Getting Started with a Managed Services Programs: The Definitive Guide,” to learn more about how MSPs work, if one is right for your business if you should also engage VMS automation, and how to get the ball rolling once you’ve answered these questions for yourself.