As organisations increasingly rely on flexible talent to remain agile, understanding how to manage a compliant contingent workforce has become essential. Managed Service Provider (MSP) solutions offer expertise and support in overseeing temporary staffing, navigating compliance, optimising supplier relationships and souring the best non-permanent talent.
This article answers the ten most frequently asked questions about MSPs, with insights into helping organisations make informed decisions about their workforce strategy.
1. What is a Managed Service Provider (MSP) in contingent workforce management?
A Managed Service Provider (MSP) in contingent workforce management is an external organisation that oversees the entire process of tracking, sourcing, managing, and optimising a company’s temporary labour workforce. This can include temporary workers, contract workers, and even freelancers.
MSPs handle relationships with staffing suppliers, streamline hiring and onboarding, ensure compliance with labor regulations, manage technology, and provide visibility into workforce spend and performance. Their expertise enables businesses and organisations to efficiently manage contractors, freelancers, and temporary staff while reducing costs and minimising risk associated with a flexible workforce.
2. How does an MSP differ from a Vendor Management System (VMS)?
An MSP (Managed Service Provider) is a service-based workforce management solution where an external team manages the contingent workforce process for an organisation, including supplier relationships, compliance, and optimisation.
In contrast, a Vendor Management System (VMS) is technology - a software platform used to automate and track the procurement, management, and reporting of temporary labour. While a VMS provides the tools, an MSP delivers the expertise, processes and resources to actively oversee and optimise the entire contingent workforce programme.
3. What are the benefits of using an MSP for contingent workforce management?
, consolidating supplier relationships and invoicing, and driving cost savings through preferential negotiated rates and consolidated supplier contracts.
It ensures compliance with complex labour regulations, minimises risk, and provides real-time visibility into spend and workforce data.
Access to industry expertise and market intelligence empowers organisations to acquire top talent efficiently with enhanced talent acquisition strategies.
In addition, robust reporting and analytics facilitate informed workforce decision-making and continuous programme optimisation, all of which support sustainable workforce agility.
Specialist expertise gives organisations access to market insights, analytics, and research.
4. How does an MSP manage multiple staffing suppliers?
An MSP manages multiple staffing suppliers by acting as a central point of contact, distributing job requisitions based on supplier strengths, and monitoring performance through agreed metrics.
They negotiate contracts, standardise processes, and ensure clear communication between suppliers and the client. Regular scorecards and/or reviews hold suppliers accountable for quality, speed, and compliance, while fostering competition and collaboration. This structured approach optimises fill rates, maintains consistency, and ensures the client receives the best talent from a diverse supply base.
5. What industries benefit most from MSP solutions?
Industries that benefit most from MSP solutions are ones that experience high demand for flexible, project-based, or seasonal talent. These include technology, healthcare, manufacturing, finance, logistics, local government, hospitality, and retail, where large volumes of contingent workers and complex regulatory environments are common.
MSPs help these sectors access specialised skills, efficiently manage diverse suppliers, and ensure compliance. This enables organisations to swiftly adapt to market shifts and maintain workforce agility while controlling costs and minimising operational risk.
6. Can small or mid-sized companies benefit from an MSP, or is it just for large enterprises?
MSP solutions are highly scalable and can be adapted for companies of any size, not just large enterprises. Small and mid-sized businesses can use an MSP to gain access to industry expertise, improve compliance, and streamline vendor management without the need for dedicated internal resources.
By centralising processes and supplier relationships, MSPs help organisations of all sizes control costs, reduce risk, and remain agile in rapidly changing markets, making the advantages of MSPs accessible beyond just the largest employers.
7. How do MSPs ensure compliance with labour laws and regulations?
MSPs ensure compliance by staying up to date on local, national, and international labour laws, implementing standardised onboarding and documentation processes, and conducting regular audits.
They use advanced technology to track worker classifications, adhere to co-employment guidelines, and manage required certifications. With dedicated compliance teams and robust supplier management protocols, MSPs proactively identify and mitigate risks, ensuring all contingent workforce engagements align with relevant regulations and industry best practices across every location and assignment.
8. What’s the difference between a “Master Vendor” model and an MSP model?
The “Master Vendor” model involves a single staffing supplier taking primary responsibility for filling most or all contingent workforce needs, often using their own network or subcontractors.
In contrast, an MSP model acts as a neutral programme manager for multiple suppliers, overseeing the process, optimising supplier performance, ensuring compliance, and providing unbiased access to talent. The MSP model offers greater supplier diversity, independent oversight, and advanced analytics, promoting both competition and collaboration across the supply chain.
9. What should I look for when selecting an MSP provider?
When selecting an MSP provider, prioritise industry experience, a robust network of qualified suppliers, and proven technology partnerships for seamless integration. Evaluate their reporting capabilities, transparency, and approach to compliance and risk management.
Cultural alignment with your organisation and a commitment to continuous programme improvement are also important. It is also important to assess their ability to scale solutions, provide real-time analytics, and offer personalised support to meet your evolving contingent workforce needs and strategic business goals.
10. Why is Guidant Global the leading MSP solution provider?
For nearly a decade, Guidant Global has sparked innovation, fostered collaboration, and challenged boundaries, creating industry leading breakthroughs that accelerate business growth on a worldwide scale.
Guidant Global is recognised as a top MSP provider for its industry expertise, advanced technology, broad supplier network and industry awards. They emphasise transparency, compliance, and custom management, delivering measurable talent solutions. With a focus on partnership and analytics, Guidant Global enables organisations to adapt quickly and effectively manage their contingent workforce.
If you have any further questions about MSP solutions, Guidant Global’s team is ready to provide the expertise and guidance you need to navigate your contingent workforce challenges with confidence. Get in touch today.
