White Papers & Research

Going Mainstream: Managed Service Programs are Graduating from Experimental to Standardized, but the Evolution isn't Over Yet

Going Mainstream
Managed service programs are graduating from experimental to standardized, but the evolution isn't over yet.
By Russ Banham

Hays is increasingly hearing from clients who want technology not only to manage their contingent workers, but also to provide statement of work (SOW) and applicant tracking system (ATS) functionality. Anne Osty, vice president of sales and marketing Staff Management | SMX, cites the same requests. "Ultimately, our clients want to include all nonemployee worker types in their programs - contingent and SOW consultants as well as outsourced services, which include diverse functions from call center operations and IT help desks to food and lawn care services," she says. Other clients are integrating deliverable-based services that wouldn't traditionally fall under an MSP, "but because the supplier management process is similar, such as learning and development, they can obtain the benefits of MSP management," she adds.

As companies continue to increase their reliance on contingent staffing, Osty believes that MSP growth will continue. "That said, we do recognize a shift taking place in the marketplace. Many of the largest users of contingent staffing have implemented an MSP program, so new client acquisition in the largest program segment may be leveling off," she says.

Osty projects a "tremendous opportunity" to drive continued growth by focusing on "bringing MSP services to clients with smaller contingent labor expenditures," she says. "MSP providers have generally not invested in an effective solution to meet the needs of the smaller market ($10 million or less of primarily domestic spend). While we managed some of the largest and most complex MSP programs in the industry, we also continue to focus on smaller and mid-sized clients, and believe that those users will yield further opportunity for growth and expansion."