Introduction
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www.everestgrp.com | EGR - 2021 - 25 - V - 4434
Over the last 25 years, the Manager Service Provider (MSP) industry has successfully and
continuously evolved in terms of service portfolio and value proposition to effectively deliver
on enterprises' contingent workforce requirements. This evolution ensured significant expansion
for MSP services globally, with organizations of all shapes and sizes leveraging MSP services
extensively. Generally speaking, the industry was doing well, innovating to keep pace with
the changing times, and providing the right support to clients to help them with their temporary
workforce requirements.
Then came 2020 and the out - of - the - blue lightning strike that was COVID - 19, shocked the world.
Amid one of the widest spread and most impactful humanitarian and economic crises in modern
history, the MSP industry demonstrated leadership and resilience. Initial speculation and concern
about supply - side constraints impacting service fulfillment and quality quickly gave way to
appreciation for the industry's stability, demonstrated expertise, and commitment from both
organizations and individuals. While the industry swiftly adapted to Work From Home (WFH)
delivery, ably fulfilling services as part of its flex - and - scale value proposition to cater to dramatic
fluctuations in hiring requirements and resolutely maintaining service quality levels, it was clear
that another major disruption was around the corner.
Albert Einstein once said, "In the midst of every crisis, lies great opportunity." Indeed, the
COVID - 19 - induced crisis has paved the path for the industry's evolution to MSP 4.0 – the next era
for this sector, which will be more dynamic, more reliable, and significantly more agile in driving
and shaping clients' next - generation talent needs. Both enterprises and MSPs see the pandemic
as the cloud with a silver lining, taking the opportunity to revamp, rejuvenate, and revitalize
contingent workforce models as critical both to meet talent needs in the future and to better
manage risk, especially in uncertain and difficult times. This change will come through a dramatic
acceleration of some current levers as well as the introduction of some new levers that have
emerged during the crisis. This report explores these key levers and explains how they will shape
the industry.
This Everest Group research answers key questions that will shape the MSP industry's future,
including:
l What is MSP 4.0, and what is its value proposition?
l What are the key levers necessary to realize value?
l What are the implications for the industry?
l What should industry stakeholders do to effectively capture value?
