What is a Managed Service Provider?

PRO UnlimitedBy PRO Unlimited 1 year ago
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Today, 40% of the total global workforce is comprised of non-employee talent, including independent contractors, freelancers, professional services and temporary workers. The gig economy is growing beyond organizational capabilities to manage it, causing individual departments and managers to directly engage staffing suppliers to meet their contingent workforce needs without a centralized process to track and control spend. Without standardization of and visibility into their workforce, organizations that rely on professional, white-collar workers are exposed to higher costs, increased taxes and looming regulatory risks. This influx of contingent workers that fall outside the lines of the typical full-time job is creating a new set of challenges for organizations, pushing them to reach outside of their internal resources for an external partner – a Managed Service Provider (MSP).

When an organization chooses an MSP to outsource its contingent labor management, it becomes the responsibility of the MSP to leverage its expertise to combine best practices and process with technology to centralize and optimize the non-employee workforce, for increased visibility and control while realizing cost savings.

However, all MSPs are not created equal when delivering the greatest value from your contingent workforce management program. While the traditional MSP aligns to a specific staffing provider to deliver talent, this practice isolates other suppliers, creating missed quality talent opportunities and rate markups. Instead, an MSP that is purely vendor-neutral, not aligned with any staffing provider, has an inclusive model that allows all staffing providers to participate, which ensures the presentation of the best qualified candidates on the market for organizations to choose from.

Benefits of outsourcing to a vendor-neutral Managed Service Provider

With a vendor-neutral MSP, organizations gain access to an expert partner with the task to deliver on your workforce goals. At a high level, MSP services include:

  • Dedicated team of resources: An expert team that is fully dedicated, acting as an extension of your organization – consistently accessible to your internal team, driving strategic initiatives, change management, supplier management, and resolution of critical escalations and non-employee relations.
  • Access to the highest quality candidate pool: Facilitated by the vendor-neutral MSP and delivered by staffing providers, talent is sourced and managed through a streamlined process and presented to the organization based on their internal needs.
  • Interactive supplier engagement and management: In a vendor-neutral MSP model, a level playing field is created among suppliers to proactively communicate requisitions at market-driven worker rates. The MSP drives program adoption, compliance and more effective management of labor spend.
  • Holistic workforce planning: The MSP acts as a partner to the organization, providing strategic, consultative recommendations on regulatory changes, and securing and engaging top-quality workers.
  • In-depth benchmarking, analytics and reporting: Access KPIs and performance metrics via analytics and reporting created by the MSP that deliver valuable insights for making better business decisions.
  • Increased overall cost savings: Achieved through streamlined operational processes and the submission of high-quality candidates at rates that are competitive in the market, ensuring that organizations don’t overpay for talent, but also pay talent to the full extent of its worth.

As the way we work continues to evolve, sourcing from a growing pool of talented contingent workers can help an organization meet changing demands, but managing these workers to ensure success can be an overwhelming task. As 71% of today’s businesses list being more agile as the top challenge in managing non-employee labor, the ability to be agile may come from the external expertise of an MSP. If your organization has lost sight of its contingent workforce operations and seeks to regain its footing, it may be time to consider outsourcing to help you fully embrace the benefits that a MSP can deliver.

 If you’re interested in learning more about how PRO is helping organizations implement winning contingent workforce programs globally, please contact a PRO representative at 800.291.1099 or email at info@prounlimited.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 PRO Unlimited and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.

  Industry InsightsWorkforce Management
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