MSP stands for Managed Service Provider. It is a business model where a company outsources the management of their contingent workforce to a third-party expert to drive cost savings and avoidance, process efficiencies, enhanced talent quality, improved visibility over spend as well as assistance in managing the risks associated with contractor management.
The Third-party MSP vendor is responsible for managing the contractor workforce. When managed well with a quality provider, an MSP can deliver on average costs savings between 10-20% in the first year.
A managed service provider is the right choice for recruitment when you lack a cohesive contingent workforce strategy. Common flexible talent issues that benefit from an MSP:
The difference between a recruitment process outsourcing (RPO) solution and a managed service provider (MSP) solution is that MSP falls under the umbrella of RPO. You may partner with an RPO for an exclusive contingent workforce solution, or an MSP engagement may be one of several solutions your RPO partner provides.
Quality experience – Having an MSP gives you an embedded team of experts who know your business, have access to quality talent and can manage the end-to-end recruitment process.
Financial benefits include increased visibility and control over your contingent workforce program, reduced costs and access to quality talent faster.
Operational efficiency is achieved by having a single vendor to manage your contingent workforce who can automate processes, provide consolidated invoicing ad workforce agility.
Reduced your risks around regulatory and process compliance, on and off-boarding and tenure and policy management.
Vendor Neutral Managed Service Provider (MSP) is when one provider manages the contingent workforce but via third-party agency suppliers.
Direct Sourcing Managed Service Provider (MSP) is when one provider manages the contingent workforce and directly sources a percentage of the workers.
VMS refers to Vendor Management System It is technology that helps an organisation manage its contingent workforce.
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