The global MSP (managed services program) market continues to see strong growth. Total spend under management reported by MSPs grew 19% (both in the US and on a global basis) according to estimates released by Staffing Industry Analysts in September 2014.
The market’s evolution and increasing sophistication are now underscoring differentiation among providers. It also indicates how solutions are maturing and delivering greater value than ever before in response to customer needs. Besides the traditional MSP drivers such as cost reduction, greater spend and workforce visibility, and compliance management, new drivers focused on optimizing the blend of permanent and contingent workers and access to quality talent are emerging. This is driving change in MSP solutions models such as the types of labor under management, delivery models, service provider landscape, pricing models, and geographic scope.
5 tips for gaining strategic value from an MSP program
|1. a holistic approach: How can your MSP program best support your holistic talent strategy and workforce plan? Identify future program goals and gaps, and examine your overall strategy to steer the MSP program in the right direction.|
|2. create a partnership: Most MSP programs begin as customer-vendor relationships, but as they develop, the relationship evolves into a strategic business partnership focused on achieving joint goals and results. Continuously assess your approach to make sure you and the MSP service provider grow in the same direction and share common goals.|
3. take a deep dive: Many solutions providers are enhancing their ability to deliver deep, insightful analytic data about a client’s contingent workforce. Look for ways your program can provide the same meaningful information to drive workforce planning.
|4. supply chain best practices: Although supply chain management is part of the basic deliverables in a program, buyers can gain even greater efficiencies by working with their provider to conduct a thorough analysis of suppliers — from temporary staffing agencies to SOW providers.|
|5. scope expansion: By leveraging a successful program across all of its markets, a buyer can maximize cost savings, program visibility, and governance. Consider whether you can expand an existing solution to other areas of your business or new geographies to realize a greater impact.|
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