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how to select the best MSP solution to support your contingent workforce strategy 4 The results of the RFI are analyzed and scored. This helps you to create a shortlist of 3 to 5 parties to receive a Request for Proposal (RFP). The RFP may be based on the technical specifications (detailed information on services offered, the hiring process, invoicing, vendor management software, etc.). The total costs of services and how they are funded should be clarified; your options are either a supplier-funded model (in this case, the third party pays for the service) or a customer-funded model (the customer pays the costs of the MSP). Typically the internal assessment team compares the RFP responses and invites a small selection of parties to give a presentation to explain their services more in depth and answer questions. This is an opportunity for the client team to familiarize themselves with the provider delivery team. It's an important interaction because these gatherings offer insights on whether there is a personality fit and a cultural fit. They also help answer more important questions of whether the provider shares the vision and is committed to achieving the business objectives together and is it a genuine strategic business partner. Answering these and other critical questions will help you determine which party is the best fit. The next phase, then, is signing a letter of intent, followed by an operational assessment. This gives the MSP service provider a more detailed view of the number, type, and level of required external workers and how the acquisition process currently functions in the client organization. Following the assessment, the MSP service provider can develop a final proposal in which the solution is described. In this phase, the two sides negotiate a service level agreement and key performance indices. Depending on the goals of the client, KPIs can be based on cost, service performance, value-added services, and compliancy. The MSP provider will typically collaborate with the customer in defining which KPI's are most appropriate and achievable to support critical business needs. developing the contract In the contracting phase, the agreement is finalized. In practice, this is done by entering into a master service agreement tailored to the customer's goals. It should be also aligned with any agreements made with third- party suppliers to avoid potential conflict. The MSP usually provides legal advice and regulatory expertise to ensure hiring practices comply with country-specific legislation covering data protection or other labor- related issues and financial terms (i.e., invoicing currency). Based on the countries involved in the agreement, the buyer develops specific agreements with third-party suppliers in each country. In finalizing the contract, the client's legal and procurement teams develop supplier agreements based on input from the HR and finance departments. At the same time, the MSP's legal and business development specialists collaborates with the client to reach an agreement that satisfies all parties involved. conclusion Implementing an MSP solution is one of the most effective ways for organizations to better manage their growing contingent workforce program. By leveraging all the resources of an outsourced partner, buyers can be assured of access to high-quality flexible talent quickly, cost-effectively, and compliantly. However, to ensure the service provider is best aligned to their needs, employers should carefully navigate each step of the selection process as discussed above. While it may seem like an arduous task, time and effort invested upfront will repay itself many times over because the right partner will ultimately deliver the measurable results you require and the business impact you desire. n about the author Read more about how MSP can benefit your business at: www.randstadsourceright.com Erwin Duits is Supply Chain Manager, EMEA for Randstad Sourceright. He has extensive experience in procurement and has helped many multinational organizations improve their procurement processes and achieve a competitive business advantage.

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