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how to select the best MSP solution to support your contingent workforce strategy 3 the business impact of MSP how leveraging an outsourced solution can drive organizational performance A managed services program (MSP) is a centralized approach in which an outsourced service provider oversees a client's process for acquiring and managing contingent labor. The internal benefits are clear, but how can an MSP support the business? There are many ways in which an outsourced program can aid business leaders' goals, including cost-, resource-, and time-related benefits that impact a company's bottom line. Here are some examples: cost efficiencies Every business unit needs to watch its bottom line, so when contingent hiring is poorly controlled and managed anywhere in the organizarion, it has an impact on financial performance. An MSP enables business leaders to rein in its labor costs by acquiring talent based on negotiated discount rates. If a statement of work employee is involved, an MSP may be able to significantly reduce costs by qualifying a lower-cost professional in place of a consultancy. visibility and measurability Organizations that invest in a vendor management system ensure they have better control and visibility of their contingent workforce spend, but without the technology and process expertise of MSP partners, they won't be able to fully realize all the benefits. By measuring KPIs around contractor performance, compliance rate, and fill ratio, MSPs help their customers gain greater business insight. They further enhance process visibility and performance by setting up relevant benchmarks, collecting the appropriate analytical data, flagging inefficiencies and gaps, and recommending remedial actions. access to talent MSPs' dedicated supply chain experts intimately understand the availability of talent from various suppliers in the marketplace. Knowing which suppliers can fill specific job profiles quickly and effectively reduces time to hire and improves tenure and continuity. More importantly, MSPs work closely with clients to rate supplier performance and determine how to rationalize the supply chain and retain the best vendors. risk and compliance support Increasingly, organizations are at risk for non-com- pliant hiring practices. With the growing use of independent contractors and other freelancers, the potential for misclassifying employees, for instance, is on the rise. Additionally, companies that expand into new markets and territories may be at risk for failing to identify regulations that apply to their business. MSPs employ robust legal departments and possess thorough knowledge of all applicable labor regulations in the areas in which they operate. Through their expertise and best practices, they can help clients mitigate risks and navigate local mandates so the business can more quickly execute on their plans. The supplier landscape is full of competent providers specializing in different types of programs. For instance, they may be specialists in specific industries, by geography, or program size. Some may have a very large portfolio spanning a number of categories while others may be focused on IT or financial services only, for example. One thing to keep in mind is make sure the ones you are considering can grow to your aspirational state and not just meet your current needs. If you intend to implement only in one country today but eventually roll out the program across multiple countries or even globally, the prospective provider should have a global footprint and the resources to support your ambitions. Once you've identified suitable providers, develop a Request for Information (RFI) document that will be circulated to all those on the list. Through RFI responses, you will have a clear idea of the services provided by the supplier, the strategy they may take in developing a program for you, customer references, geographic delivery capabilities, and access to talent. Typically, pricing is not yet discussed at this stage. by assessing the issues and needs of the business, the functional requirements become clear

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