6 Reasons to Use a Vendor-Neutral Managed Service Provider (MSP)

According to a recent industry report, SIA predicts the staffing industry will grow 2.4% in 2024 to reach an industry value of $216.9 billion. Yet despite these figures, many companies struggle to identify and track external labor spend. In addition, they often lack the resources and expertise to effectively source and manage these contingent workers.

Given these challenges, many organizations choose to partner with a Managed Services Provider (MSP) to help in managing this area of business. The MSP then becomes a vendor management or project management office for its client, with the objective of consolidating and managing all aspects associated with external labor.

6 Key Reasons to Use an MSP

While there are many benefits to using a purely vendor-neutral managed services provider – especially when integrated with a leading-edge Vendor Management System (VMS) – here are six key reasons to use an MSP.

1. Cost Savings
   Many organizations spend millions of dollars on their contingent workforce programs. An experienced MSP can identify strategic cost savings opportunities and help with implementation of these initiatives, driving significant cost savings. (Read more: “ConnectiveRx Achieves Time & Cost Savings with Magnit and Glider AI.”)
   
   
2. Improved Cycle Times
   Organizations often lack a centralized hub for managing contingent labor, leading to fragmented communication and inefficient protocols. A strong MSP will help streamline and automate processes, providing welcome uniformity and consistency. (Related reading: “3 Ways the Latest Technology Can Help Optimize Your Contingent Workforce”)
   
   
3. Mitigated Risks
   Employing contingent workers means complying with ever-changing local and national laws. An MSP with deep expertise in co-employment regulations and compliance can provide guidance and help minimize risk in these areas. (Get more insights: “Debunking Length of Stay Policy Myths: Proven Practices for Managing Contingent Worker Liability”)
   
   
4. Higher-Quality Workers and Suppliers
   MSPs who have worked to build deep partnerships with staffing agencies provide improved access to higher-quality contingent labor resources from higher-quality suppliers. Furthermore, purely vendor-neutral MSPs level the playing field for suppliers, incentivizing them to provide the best talent at the most competitive rates. (Learn more: “The New Role for the MSP in Human Capital Management”)
   
   
5. Superior Tracking and Reporting
   Many organizations lack the necessary technology, integrations and know-how to gain deep visibility into the contingent workforce, let alone glean actionable insights from this data. A leading-edge MSP – particularly when coupled with an industry-leading, integrated VMS – can provide company-wide tracking and reporting on spending, headcount, supplier performance and more. (Read more: “5 Most Important Questions to Ask Around Your Contingent Workforce Metrics”)
   
   
6. Improved Flexibility
   Whether due to economic fluctuation, seasonal variance or countless other factors, a company’s workforce needs frequently change. An MSP can help drive improved agility through the strategic use of the contingent workforce, adapting to shifting business needs and providing access to specialized skillsets. (Related reading: “Is the Contingent Workforce Your X Factor for Organizational and Business Agility?”
   

While the reasons to use an MSP may vary a bit depending on industry, geography and other factors, a leading MSP will always enable its clients to more strategically use the contingent workforce, creating a competitive advantage in the war for talent and freeing up clients to focus on their core business competencies.

If you’re interested in learning more about how Magnit is helping organizations implement winning contingent workforce programs globally, please contact a Magnit representative at info@magnitglobal.com

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.