MSP 4.0: FROM CONTINGENT WORKFORCE MANAGEMENT TO CONTINGENT TALENT EMPOWERMENT
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The MSP story so far and the arrival of MSP 4.0
The MSP industry has undergone successful evolution in the past 25 years to meet changing business
requirements as illustrated below.
EXHIBIT 2
Evolution of MSP
Source: Everest Group (2021)
MSP 1.0
(1995 - 2000)
MSP 3.0
(2010 - 2020)
MSP 2.0
(2000 - 2010)
Key value proposition / focus
l Cost
l Compliance
l Visibility
l Vendor neutrality (due to
information asymmetry)
Coverage
l Functional: staffing supplier
management, administrative
processes (billing, payments,
etc.)
l Technology: Vendor
Management System (VMS)
Key value proposition / focus
l Cost
l Compliance
l Agility, scalability, flexibility
Coverage
l Functional: end - to - end
traditional staff augmentation /
temporary worker
management
l Technology: Vendor
Management System (VMS),
basic analytics
Key value proposition / focus
l Cost
l Compliance
l Agility, scalability, flexibility
l Talent quality
l Ability to hire niche talent
Coverage
l Functional:
– End - to - end traditional staff
augmentation / temporary worker
management
– Basic SoW / services procurement
management (headcount tracking,
classification)
– Partial freelancer / IC management
(compliance and classification)
l Technology: Vendor Management
System (VMS), ad hoc use of add - on
tools, analytics portals, and
dashboards
