MSP typically stands for Managed Services Provider but is sometimes referred to as a Managed Service Program.
When an employer is considering partnering with a Managed Services Provider (MSP), it's important to consider whether the MSP has the required processes, personal expertise and technology stack to manage the organization's contingent and Statement of Work (SOW) workforce in part or in its entirety.
Managed Services is one of the fastest growing outsourced talent acquisition solutions today.
As the world of work remains vulnerable to an uncertain economy, employers across the globe are implementing more forms of contingent workers in their post coronavirus recovery strategies.
Why? The flexibility of operating a contingent workforce will help employers gain access to talented, qualified workers who can be engaged on a contract basis when the demand for service(s) arises, saving on many of the costs associated with hiring and managing traditional workers.
Why do you need a Managed Services Provider?
While the rise of the contingent workforce provides many inarguable benefits, it also leaves employers with the complexities of managing temporary workers. A Managed Services Provider will have the IT infrastructure, expertise and remote monitoring and management solutions in place to provide employers with complete visibility into their contingent workforce.
A Managed Services Provider will help a business to streamline and manage its entire contingent workforce by improving efficiency, controlling costs and mitigating the fines, penalties and reputational damages associated with certain contingent workforce risks.
While early Managed Services models focused on process improvements and cost savings, more mature Managed Services Providers, however, are now seeking ways to increase access and service delivery of high caliber talent while reducing time to hire.
What makes a good Managed Services Provider?
A Managed Services Provider will also:
• Mitigate compliance risks.
• Prevent issues before they arise.
• Quickly deal with issues that do arise before they affect internal staff, clients and customers.
• Understand the latest security threats.
• Deliver exceptional candidate experience.
• Meet technology demands.
• Review current supplier and vendor contracts.
• Manage contingent and SOW worker contracts.
• Provide reporting and analysis.
• Manage supplier base.
• Manage and pay staffing suppliers.
• Provide strategic advice on key labor trends.
• Create and implement tailored workforce solutions customized to an organization.
Is a Managed Services Provider (MSP) right for me?
An MSP will require organizations to have a minimum amount of contingent worker spend in order for the relationship to be successful and self-sufficient. When deciding whether or not an MSP is the right solution for your organization’s needs, there are first some basic and more complex factors to consider.
First, it’s critical to understand how much contingent workers are currently costing your business. It’s a unique number to an individual organization, yet can be difficult to account for, as nearly 60 per cent of contingent worker costs is unaccounted for in the average business.
Choosing a Managed Services Program
If your organization is considering Managed Services, the right Managed Services Provider will deliver a level of service expected of your organization's key stakeholders, clients, customers and staff - while also helping employers to manage their contingent business needs. Here's what to consider when choosing a Managed Services Provider:
Is the Managed Services Provider an expertise in its respective industry categories?
When choosing the right MSP provider, it's important to make sure to look for a provider that has tenure in its respective industry categories. A good Managed Services Provider will have the reputation of being a thought leader and Subject Matter Expert in its field(s). An organization's relationship with its MSP should be a long lasting engagement, as such, it's also important to ensure the provider has healthy relationships with current clients.
Can the Managed Services Provider deliver the candidate experience expected of your employer brand?
Negative employer branding makes it all the more difficult for organizations to hire top talent, with 55 per cent of job seekers abandoning an application after reading a negative company review online. Now, more than ever, the candidate experience matters. Good Managed Services Providers will execute a comprehensive review of your employer brand and make sure your brand architectures are demonstrated at each stage of every engagement with candidates and vendors.
Can the Managed Services Provider scale to business business growth?
A good Managed Services Provider will understand an employer's business and business goals. It's important to partner with an MSP who has the technology infrastructure and expertise to contribute to the evolution of your organization with insights into shifts in technology and market trends. As such, employers must make sure to determine whether the MSP can maintain and grow their organization's IT infrastructure in line with business goals and technology needs.
Does the MSP have a proven track record of maintaining industry best practices?
Services Providers must demonstrate they have the expertise, technology and experience to follow best practices.
They should be able to show you that they have the knowledge, technology, and experience to partner with you. They should know how to follow these industry practices, so they can ensure the seamless migration from one existing infrastructure to another, in order to apply the latest technology without sacrificing uptime or security. Your MSP should be able to offer customized IT services and solutions that will keep your data protected and your hardware running smoothly
Does the MSP provide transparency?
Transparency in the MSP's process in managing your contingent workforce is essential. Employers should have access to all relevant reports and analytics as they pertain to screening and onboarding processes, payroll accuracies, compliance and more.
Does the MSP have an in-depth understanding of the latest advances in Cyber Security?
A MSP must be aware of the latest network security threats to an organization's business and the steps needed to monitor services, while also protecting an organization from digital security threats.
What is the MSP's order fulfillment history?
Engaging talent quickly and cost-effectively is critical; how fast can the MSP fill a job order? It's important to be aware of the provider's job order fulfilment rate. This data will help manage costs and improve the quality of contingent candidates.
Will the MSP help your business achieve cost savings?
When an organization partners with an MSP, the provider assumes responsibility for the engagement and management of the organization's current vendors. This provides an opportunity for the MSP to introduce new vendors and negotiate rates with existing ones.
The right Managed Services partner will help to achieve cost savings, while continuously finding ways to increase access and delivery of high caliber talent.
When considering partnering with a MSP, it's important to make sure to choose a provider that can decrease costs, reduce IT and compliance risks, while also source and manage qualified talent.
Are you interested in learning more about Managed Services?
View our Case Study to gain deeper insights into how Procom's MSP and VMS solution helped one client company achieve cost saving and compliance: