An MSP or Managed Services Program is a service that enables customer organizations to outsource the responsibility for maintaining a range of business processes and operational functions in order 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.
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 celebrated for their ability to effectively negotiate rates with staffing suppliers to ensure costs stay under tight control. They’re also invaluable for protecting their customers from every 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 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 easier 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 from staffing organizations
- 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 that drive visibility and cost savings
Why Might My Organization Need and MSP?
Top Five Reasons to Consider an MSP for Your Organization:
- If you’ve been tasked with lowering operational costs in workforce management
- If 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
- If you’re seeking consistent and audited risk mitigation practices when it comes to administering today’s complex array of worker classifications and types
- If scalability is important (for orgs that are subject to seasonal demand fluctuations or are anticipating rapid growth)
- If your organization has operations across a larger, more decentralized geography requiring staffing activities in divergent markets with disparate regulatory strictures
To read more on this subject, turn to nextSource for expert guidance and visit our Managed Services Provider page.