#5 are you ready to expand your managed services program? | MSP series.

January 2, 2020

elevate contingent workforce success through a broader engagement.

elevate contingent workforce success through a broader engagement

A managed services program (MSP) can deliver many benefits to your growing contingent workforce, and a truly successful program can continue to generate new value for your organization. For instance, if you implement a solution in one market or business unit, you may want to duplicate the same positive results across the enterprise. In fact, expansion is a natural part of the MSP process, with many practitioners typically seeking to grow their program, whether by scope of services, geographical footprint, work arrangements or business lines.

Expansion may not always be possible, based on factors such as a service provider’s competencies, legal restrictions in certain markets or economic feasibility. Then there is the issue of stakeholder buy-in. In your own business, you’ve probably witnessed contingent workforce participation vary among different groups, and this may be a significant barrier to program expansion. If you can address these challenges, however, the benefits of a broader program can be exponentially multiplied. MSP expansion can occur in a number of ways.

ways to expand your MSP.

widening scope of service

When companies adopt an MSP program for the first time, they often look to address specific pain points. A robust MSP program, however, can improve processes throughout the organization, lifting performance in services other than the initial challenges. Payrolling, for instance, can be onboarded after a successful launch, or you may want to include statement of work (SOW) services.

greater geographical reach

Most MSP programs are launched covering a defined geography for service. Because every country has specific laws regulating contingent workers, some buyers of global MSPs typically roll out programs in stages across various markets. Some expand the footprint only after an initial launch has proven successful. Expanding a solution to additional countries is one of the most effective ways your organization can ensure consistent contingent workforce practices around the world.

new work arrangements

Many employers are adopting a more holistic approach to managing talent, as demonstrated by growing interest in managing SOW talent under the MSP, for example. Beyond SOW talent management, the growth in independent, freelance and gig workers is leading some companies to implement human cloud platforms to better engage and manage this type of talent. Your MSP partner can integrate this source in your overall contingent talent management strategy for greater visibility and control.

adding business lines

Often, a new program omits certain businesses due to complexity or stakeholder resistance. As the program matures and validates its value and effectiveness, it may be expanded to include additional lines of business. For some organizations, this type of expansion is the least disruptive because it only adds to the existing scope with few changes in service or work arrangements. At the same time, you will need to consider that additional lines of business may have data challenges or use different types of talent.

integrated talent solutions

The most promising evolutionary step in MSP practices, an integrated talent approach enables an employer to break down silos, allowing companies to manage both contingent and permanent workers through a single talent model. Both your MSP or recruitment process outsourcing (RPO) program can be elevated to a complete, holistic model that delivers a host of organizational benefits. Companies that take this approach experience exceptional value as a result of aligning talent acquisition capabilities with business needs. This allows organizations to deploy the most appropriate resources at the right time, regardless of whether the talent is contingent or permanent. Your talent strategy partner can support all talent acquisition activities, including advisory, fulfillment and reporting. The result is a consistent, high-touch program customized to your unique culture, industry and geographical footprint.

why grow your MSP?

If your existing MSP already delivers great value; does it make sense to change the status quo? Since you have invested in an outsourced solution, your organization has clearly demonstrated a forward-thinking approach to flexible talent. Expanding this success to other areas of your enterprise aligns with your overall workforce strategy. Whether you are broadening the services or footprint, by bringing the same processes, discipline and technology together, you can be sure to optimize talent agility for all of your business lines.

Should you decide to embark upon a journey of expansion, be sure to engage all stakeholders as to what's involved. Any program change should be taken on with an in-depth understanding of the company’s current and future talent needs.

Consider the following to ensure success:

  1. evaluate your current program. Make sure the existing MSP is stabilized and has achieved its initial goals for your contingent workforce. Unresolved issues will only be magnified when an expansion is initiated, so make sure they are mitigated well before you tackle any changes.
  2. address unique circumstances. Rather than replicating all aspects of the existing program in a different business unit or geography, consider the unique needs and mandates of the additional businesses. Your MSP provider can help identify those nuances and customize the program as necessary.
  3. minimize the disruption. Implementing new services and launching them in additional lines of business and markets requires a lot of attention from program owners, but make sure you aren’t distracted from the needs of your current program.

driving MSP innovation.

As you look to optimize your contingent workforce and ensure a more agile talent model, consider how expansion of an existing MSP can accelerate your talent strategy further and help you reach new goals. You will need to work with your MSP partner to determine the best approach for your expansion, but the new program is likely to roll out more smoothly because you already have a clear understanding of the process, goals and technologies. In the end, you’ll ensure a greater level of consistency and rigor in the management of your flexible talent.

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#4 how to work with your MSP provider to get the best results | MSP series.

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