Why Does a Company Need a Managed Service Provider?

need a managed service provider

With the competitive talent market, every business could use some help with recruitment. Instead of relying on in-house teams, more companies are turning to managed service providers (MSPs) for temporary staffing needs. Not to be confused with Recruitment Process Outsourcing (RPO). Although both are talent acquisition methods, RPO targets permanent staff—while managed service programs focus on contingent personnel.

In addition to staffing your company, a managed service program can also help with contract management, business progress updates, supplier selection, and invoice processing. Here’s why you need a managed service provider for recruitment.

Lower Costs

Though you pay MSPs to staff your business, the costs are nowhere close to in-house recruitment. First, you pay to advertise the opening through sponsored social media posts, job boards, radio, and even print media. The next cost is interviewing applicants and conducting background checks.

Not to mention training costs. Candidates may meet all the job requirements, but you still need to acquaint them with company values. That is not the case when an MSP supplies the workforce. Since they have a talent network, service providers evade most recruitment costs. Moreover, MSP charges are straightforward. By paying a one-off fee, you cater for interviews, background checks, and advertising.  


Consistent work isn’t guaranteed in business: Sales may increase for one month and drop the next.

To meet fluctuating labor demands, you need a managed service provider to staff your company according to your workload. That way, you can tap into specialized talent pools without committing financially.

Hire Faster

Staying too long with an open vacancy can stall your business. For starters, your employees handle bigger workloads, increasing the risk of errors. Additionally, staff members are unhappy and less productive when they work long hours. They might even quit their jobs, leaving you with a larger gap to fill.

Your reputation is also at stake; nobody wants to hire or work for a slow-paced company. However, an MSP supplies employees when you need them. You don’t have to wait months for your HR team to advertise positions and hold interviews. Even if they connect you to an unsuitable candidate initially, MSPs can provide a replacement from their large talent pools.  

Do You Need a Managed Service Provider?

An MSP is the solution to your contingent workforce needs. However, such services aren’t for every company. The business should have a high labor demand to make MSPs cost-efficient. Do you need a managed service provider to help with recruitment? Engage us now to access the best talent.

More Articles