One of the increasingly popular practices that have proven to be highly effective, is the creation of a centre of excellence (program office) for organizations to gain visibility and control over their contract labor spend by partnering with a managed service provider (MSP).
Many organizations make the strategic decision to outsource the management of their contingent labor procurement process (including managing the VMS software tool used to automate the process), taking advantage of MSP capabilities and experiences, while avoiding the direct cost of managing the program themselves – and freeing their key resources to concentrate on more critical initiatives and tasks.
An MSP is a specialist in the management of a specific business process – in this case, vendor and procurement management around the use of Contingent labor.
MSPs support the implementation and delivery of best practices through experienced professionals, who can design and roll-out improved processes, and deploy VMS software to automate the full lifecycle for managing contract labor.
Under an MSP program, an organization’s requisition and procurement process supporting the use of contract services, is centralized and automated, vendor contracts are standardized, and billing rates are realigned to the most competitive market rates, all of which results in significant cost savings and enhanced process efficiency.
An MSP program supported by a VMS tool provides full visibility into all vendor/ contractor-staffed initiatives by managing, overseeing, and continuously analyzing an organization’s full range of contingent workforce and vendor management issues. When staffing changes are required, the program and the MSP adapt to meet the need – from requisition, engagement and payment – for all types of labor classifications.
The Benefits of Using An MSP
The most tangible benefits of outsourcing your contingent labor management through an MSP arrangement, are that a company no longer has to dedicate staff to manage the entire “req to check” lifecycle.
In addition, the company gains significant benefits from leveraging an MSP that specializes in this area, leverages years of experience and lessons learned, and provides experienced personnel to quickly establish a fully functional and effective program.
With a contingent workforce MSP solution, there is no need to build the expertise to manage the program in-house, the process, or the software tool that supports the process – the MSP will manage all of that.
For most organizations they can rely on following key benefits from a contingent workforce MSP:
- Adoption of best practices
- Quicker and more effective implementations
- Outsourcing of the management of the process to reduce costs
- Compliance management
- Continuous management and improvement
- The VMS tools are managed
- The MSP manages the vendor pool
- MSP vendor performance management best practices
- Consolidate invoicing
- Built-in scalability
- Companies can leverage the MSPs vast knowledge and experience
We are a contingent workforce service provider helping organizations gain better access to talent through the use of independent contractors, consultants, temporary workers, freelancers and other non-payrolled employees. We provide the expertise, the technology, and processes to help you reduce your workforce costs, mitigate against misclassification and co-employment risks, and increase the efficiency and timeliness of your contingent recruitment process. Read more about what our clients say about us here.