MSP 4.0: FROM CONTINGENT WORKFORCE MANAGEMENT TO CONTINGENT TALENT EMPOWERMENT
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While the variable fee ensures buyers pay as they consume, the fixed fee ensures some protection
for the provider from volume fluctuations and enables it to make the necessary long - term investments
into the relationship, leading to a win - win for both parties.
Execution to orchestration: MSPs need to have a holistic strategy around the 8D levers as they look
to fulfill the value proposition of MSP 4.0 around active contribution to enterprise business outcomes,
superior stakeholder experience, and resilience and agility with less risk. The nature of engagement
will transform from piecemeal or siloed execution of certain processes to strategic and coordinated
orchestration of multiple elements with the ability to fundamentally impact organizations' contingent
and permanent talent - related objectives. Moving forward, MSPs will play a larger role in enterprises'
HR and talent plans through more interaction with CHROs and other senior HR and business leaders
and will have the opportunity to play the role of an orchestrator, impacting business outcomes by
becoming more engaged in strategic workforce planning and helping create nimble and flexible
workforces that respond in an agile fashion to market shifts.
Consequently, MSPs will play a far more significant talent advisory role, guiding enterprises as talent
expectations change, as well as driving / executing those strategies. This involvement can take various
shapes such as digital/technology consulting and advisory, skills advisory, location advisory, DE&I
consulting, and strategic workforce planning.
Provider portfolio rebalancing: As enterprises elevate their relationships with MSPs, they will also
reconfigure their provider portfolios with a particular focus on provider rationalization, ultimately having
fewer, more strategic relationships for a variety of reasons:
l Better risk management
l Improved visibility across global operations
l Ability to better orchestrate 8D elements and achieve transformation
l Gaining cost advantages
Exhibit 12 offers some details on enterprise provider portfolio strategies.
EXHIBIT 12
Provider portfolio strategy (percentage of enterprises)
Source: Everest Group Key Issues Survey, 2019 and 2020
19%
30%
23%
26%
No changes in the service provider mix,
but rebalance work across providers
No changes in the service provider mix; will
continue to use incumbent providers for the
same work
Significant changes in the service provider
mix, with inclusion of new providers
Consolidate/rationalize the
service provider portfolio
2020
30%
26%
24%
20%
2021
