What Is a Managed Service Provider (MSP)?

Image of a finger pressing a key on a keyboard that is labeled MSP Manages Service Provider

An 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. 

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.

Now that you have this refresher on the basics of MSPs, let’s dive into what our experts in workforce solutions here at nextSource have to say to staffing-related questions like What is an MSP in staffing?”

What Is an MSP in Staffing?

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 effectively negotiate rates with staffing suppliers to control costs. 

MSPs also protect 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 an MSP?

The primary benefit of an 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 an 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 via predictive analytics;
  • Improved workforce flexibility and more effortless scalability;
  • Ability to leverage the latest innovative technologies and best industry practices.

How Does nextSource Differentiate Among MSP Solution Providers?

  • Truly vendor-neutral, nextSource is independent of staffing organizations;
  • The signature “white glove” approach delivers collaborative partnership;
  • Experienced program architects with deep expertise in process, planning, and configuration;
  • Exceptional focus on downstream implications and compliance;
  • Proven effective at increasing access to the right talent and job fulfillment;
  • Decreased risk through compliance management and quality measures;
  • Increased process efficiencies drive visibility and cost savings.

 Why Might My Organization Need a MSP?

Top Five Reasons to Consider an MSP for Your Organization:

  • You need to lower operational costs in workforce management
  • You’re seeking 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;
  • You want consistent and audited risk mitigation practices when it comes to administering today’s complex array of worker classifications and types;
  • Scalability is essential for your organization due to seasonal demand fluctuations or anticipation of rapid growth).
  • Your organization has operations across a more extensive, decentralized geography requiring staffing activities in divergent markets with disparate regulatory strictures.

For more on Managed Service Providers and other workforce management solutions, turn to nextSource for our expert guidance! Connect with us today to ask what we can do for your organization, and read more on our blog.

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