What Is a Managed Service Provider (MSP)?
MSPs typically manage services procurement, staffing supplier relationships, and other talent sourcing and administration functions—using relevant technologies like Vendor Management System (VMS) platforms and other tech tools. Learn more and discover answers to questions like: “What is a MSP (staffing)?” and “What are the benefits of MSPs?”
What Is a MSP (Staffing)?
A MSP or Managed Service Provider is a service that enables customer organizations to outsource the responsibility for maintaining a range of business processes and operational functions to deliver the benefit of technology solutions and services instead of managing said processes internally.
A Managed Service Provider is a staffing outsourcing solution that brings to its customers all the personnel, expertise, experience, and infrastructure needed to source, field, manage, and monitor today’s complex external workforce. Today’s leading MSP providers deliver everything a mid-sized organization needs to succeed in managing an array of staffing suppliers and other contingent labor sourcing relationships.
With deep expertise in the services supply chain, MSPs are valuable for their ability to effectively negotiate rates with staffing suppliers to ensure costs stay under tight control. They’re also invaluable for protecting customers from ever-changing regulatory mandates like proper worker/independent contractor classification, co-employment rules, healthcare and benefits administration/reporting, and tax laws.
What Are the Benefits of Using a Managed Service Provider (MSP)?
The primary benefit of a MSP for human capital is cost-savings through outsourcing the labor-intensive tasks associated with managing contingent workforce management processes. However, there are numerous significant, secondary benefits of using a MSP for human capital, including:
- Enhanced visibility into workforce management program spend and performance visibility
- Increased regulatory compliance and risk mitigation
- Enhanced access to top talent in specific roles/skill sets
- Improved supply chain efficiency
- Talent branding expertise
- Data-driven decision-making through predictive analytics
- Improved workforce flexibility and more effortless scalability
- Ability to leverage the latest innovative technologies and best industry practices
Why Might My Organization Need a MSP?
Top Five Reasons to Consider a MSP for Your Organization
#1: You’re responsible for lowering operational costs in workforce management
#2: You need to reduce headcount in workforce management -OR- if your current HR staff is stretched too thin between managing the full-time workforce and the contingent workforce
#3: If you’re seeking consistent and audited risk mitigation practices when it comes to administering today’s complex variety of worker classifications and types
#4: If scalability is essential (common for organizations that are subject to seasonal demand fluctuations or are anticipating rapid growth)
#5: If your organization has operations across a more extensive, decentralized geography requiring staffing activities in divergent markets with disparate regulatory strictures
What Makes nextSource the Best Provider of MSP Solutions?
What sets our solutions apart from the rest?
Firstly, we are genuinely vendor-neutral and independent of staffing organizations. We take the signature “white glove” approach to deliver collaborative partnership and decrease your operational risks by channeling exceptional focus into downstream implications, compliance management, and quality measures.
Furthermore, our experienced program architects have deep expertise in process, planning, and configuration. Our solutions have proven effective at increasing access to the right talent and job fulfillment, and those increased process efficiencies drive visibility and cost-savings.
Choose nextSource for Exceptional Workforce Solutions
If today’s blog has you interested in MSPs for your business, or you’re looking for other workforce management solutions, you’re in the right place—that’s our specialty!
To read more on this subject and learn how our experts can offer custom, practical solutions for your business to streamline employee management, staffing, and more—turn to our experts at nextSource!
Get our professional guidance on workforce management and career advice by contacting us, visiting our Managed Service Provider page, and exploring the many free resources and literature we offer for employees and employers—all right here on our website!
