The world of work continues to evolve – quicker than it ever has before – and competitive organizations are increasingly investing in the power of a contingent workforce to become more agile in these disruptive times. As employers everywhere are using more forms of contingent workers, it’s likely that your organization is also getting on board with the same transformation.
According to McKinsey, up to 30 per cent of an organization’s workforce in the U.S. is made up of contingent workers, with employers having unprecedented access to a talent pool of 42 million of them. And while the rise of flexible talent provides many benefits, it also leaves employers grappling with the hurdles of managing the many complexities that come with these types of workers.
For answers, organizations committed to a more strategic approach to contingent talent management are turning to a Managed Services Program or Managed Services Provider (MSP) as an effective resource.
If you’re considering investing in a Managed Services Program or are interested in learning how an MSP can help optimize contingent workers to drive real business value across your organization, the following insights will help you make an informed decision.
What is an MSP?
A Managed Services Program, also often referred to as a Managed Services Provider, is the outsourcing of the management of an organization’s contingent workforce by an external resource under a single model of governance.
Today, Managed Services is one of the fastest growing outsourced talent acquisition solutions, with Everest Research Group reporting that the global MSP market surged 10.1 per cent between 2015-2016, with experts predicting the solution to outpace global economic growth.
Why do organizations partner with an MSP?
As tech and globalization continues to drive business strategies, it’s critical for employers to become more agile, and a contingent workforce is the widely-adopted answer to bridging skills gaps and driving both growth and innovation.
At its most basic delivery level, an MSP will help an organization easily streamline and manage its entire contingent workforce program by improving efficiency, controlling costs and mitigating unforgiving fines, penalties and reputational damages associated with compliance risks.
While early MSP models maintained a focus on process improvements and cost savings, more mature MSPs, however, are now seeking ways to increase access and delivery of high caliber talent while reducing time to hire. To do so through the use of technology stacks, MSPs are leveraging direct sourcing solutions for greater access to talent pools and niche skills, sourcing alternative acquisition resources like Artificial Intelligence (AI) and other initiatives that increase savings while ensuring quality talent engagement and retention.