10 benefits of working with a managed services provider (MSP)
In an increasingly competitive contingent talent market, turning to a managed service programme brings several key benefits to a business.
Whether we like it or not, uncertainty is the order of the day in modern business. Through these times of rapid technological change, global pandemics and wholesale reordering of old business models, getting ahead in the talent game requires an agile, progressive and collaborative approach.
Meanwhile, the contingent or temporary workforce is growing exponentially thanks to the proliferation of and advantages of using freelancing or outsourcing solutions. “The new normal” may be a phrase we’re all sick of hearing, but it certainly applies to flexible working arrangements. According to a recent McKinsey survey, 70% of business leaders plan on hiring more contingent workers after the pandemic than they did before.
For any business with a sizeable contingent workforce, knowing how to ensure employees remain engaged and productive is a make-or-break endeavour.
By calling on the expertise of a managed service provider (MSP) — a third-party company that takes on responsibility for your organisation’s contingent workforce programme — you’ll be able to harness the latest recruitment tech and expertise to give you full oversight of people. You’ll also gain a vital strategic partner in the process.
So, what are the main advantages of teaming up with a managed service provider (MSP)?
When you engage an MSP, you decide exactly which operations you want managing externally and which ones you want to remain in-house. You will also retain some managerial control and responsibility for the services or processes being outsourced. The MSP, meanwhile, will take over the more time-consuming, complex and repetitive tasks.
2) Talent acquisition and retention
Hiring managers can easily acquire strong talent thanks to streamlined, standardised processes across all suppliers — driving down time-to-hire.
3) Access to new technology
With the latest recruitment technology evolving so quickly, implementing the most up-to-date tech can be extremely costly. Often, it’s simply not commercially viable to invest in single-use technology. With an MSP, however, a business can access the latest tech without having to make huge financial concessions. This will help set you apart from your competitors.
As part of their technological portfolio, most MSPs are armed with a tailored vendor management system (VMS) that provides regular reporting and a clear audit trail. A good VMS will give you full oversight of the entire contingent labour force — allowing you to accurately track critical workforce metrics and build a more robust strategic workforce plan.
5) Compliance and risk mitigation
With external experts managing all legislative and governance requirements, you’ll be brought up to speed on compliance best practices and ensure your business is fully compliant.
6) Supply chain efficiency
By running all contractor and supplier engagement through a single trusted provider, you’ll significantly reduce the administrative burden of having to manage multiple suppliers at once.
With the experience of a managed service provider to call upon, you can better respond to market shifts and be better primed to improve efficiencies — making your business more agile in the process. By equipping you with more organisational agility and resilience, an MSP partnership will help you find the right talent even when the chips are down.
8) Global reach
For businesses operating in multiple geographies, accessing a steady pool of top-quality global talent can be an issue, particularly when expanding to new locations. If your MSP operates on a global scale, they’ll have the capacity and know-how to help you attract, onboard and retain the best people across different domains — all while complying with local labour laws and adhering to cultural mores.
9) Cost savings
Thanks to predictable pricing models (including outcome-based pricing), reduced third-party recruitment fees and a more strategic approach to recruitment, MSPs help businesses experience significant cost efficiencies. They’ll also secure you further cost savings through exercises such as supply base reduction and staffing benchmarking.
Working with an extensive supplier base, a managed service provider can find you alternative sources of talent when your supply chain fails to deliver — enabling you to scale your programme up or down according to your immediate business needs.
The bottom line?
An experienced MSP can call upon vast amounts of insider knowledge acquired across multiple sectors. This comprehensive, cross-sector intelligence provides you with real-time data insights into your market, giving you all the tools you need to attract, onboard and retain high-quality contingent labour and drive positive organisational change.
Utilising an MSP is a win-win for any business with a sizeable temporary workforce. By building relationships with your business users to understand the ins and outs of your organisation, the MSP’s dedicated team of industry experts manages your suppliers, sources top talent and drives best practice on your behalf — under your terms.
This content is taken from our Quick guide to MSP: How to partner with the right managed services provider. Download it now for more insights into the business benefits of MSP solutions.
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