The Growth of MSPs And Why You Should Consider Using Them

Over the last 5 years, the staffing industry has seen a major change. At the end of 2013, nearly three-fourths of Fortune 1000 companies said they were currently using or planning to use managed services providers and/or vendor management software to handle contingent workforce needs. In fact, the percentage of companies using MSPs rose from 53 percent to 66 percent between 2009 and 2013. So what do those companies know that you don’t?

1) Working with an MSP means that somebody else will handle all of the responsibilities of managing your outsourced employees. An MSP will take care of reporting and tracking, supplier selection and order distribution, and may even consolidate billing. Imagine how much time that would save whoever is in charge of the staffing functions in your company.

2) Those staffing firms that enjoy long standing relationships with their MSP partners have seen greater growth and profitability. For many contingent workforce specialists, the bulk of their business is a result of partnering with an MSP. In other words, employing professionals with expertise in this industry does pay off!

3) MSPs save you money. Because they have relationships with multiple staffing vendors, they have greater pull and can help to negotiate bill rates for you. They can also easily track and manage supplier performance across many partnerships. And, of course, managed staffing can help you turn fixed costs into variable costs.

4) An MSP’s shared services structure offers accountability and flexibility. Fixed costs associated with staffing can be distributed over multiple clients, which can reduce the costs to your organization. This also allows them to more quickly respond to any service or performance concerns so that you have the necessary staffing when – and where – you need it.

The use of temporary workers has become a semi-permanent solution for many businesses. If your goals include greater efficiencies, reliability and cost savings, you may want to consider hiring an MSP to manage your contingent workforce program. Not convinced? Contact Contemporary Staffing Solutions if you’d like to learn more about what an MSP can do for you!