Managed Service Providers – Why Now?
MSPs Manage Diverse Talent As Companies Focus on Contingent Labor is the first article in a five-part series exploring the nature of MSP programs. Staff Management | SMX President and COO Joan Davison was featured in the article that dives into why more companies than ever are turning to MSPs to manage their contingent labor programs on www.outsourcing-center.com.
MSP providers help companies plan for and scale up for wide varieties of hiring needs by vetting suppliers, communicating with suppliers and providing the technology necessary to enable clients to manage and suppliers to respond effectively to hiring ramps. The overarching goals of an MSP are similar across all types of clients and include visibility to spend, wages and margins, risk mitigation, cost savings, improving time-to-fill ratios and streamlining their staffing program.
Two of the biggest trends seen gaining traction over the last 12-18 months, and that are expected to continue to dominate the space, are the global expansion of MSP programs and the incorporation of labor types beyond traditional temporary – independent contractor (1099), Statement of Work (SOW) and other services – in MSP programs.
“Companies are more sophisticated today and need global help,” points out Davison. Companies are increasingly interested in global expansion because they want to realize the same program efficiencies, risk mitigation and cost savings that they have achieved in the U.S.
The incorporation of Statement of Work (SOW) spend management into MSP programs, is a logical next step for program managers looking to continue to drive continuous cost savings
To read more please visit the part one of the series, MSPs Manage Diverse Talent As Companies Focus on Contingent Labor.