With today’s rapidly changing technology and IT support needs as well as growing dependence on digital data, it is increasingly difficult and time-consuming for enterprises to maintain competitive edge. Companies require a unique blend of traditional (internal) employees and contingent workers to achieve their business goals. Often this means internal resources are managing complex supplier networks and large talent pools across multiple locations.
As a result, to achieve greater control, transparency, and efficiency, around 63% of workforce solutions buyers’ surveyed partner with a Managed Service Provider (MSP) who can deliver the necessary capabilities and expertise needed to improve IT portfolio and sustain long-term success in today’s rapidly changing business environment. Typically, an MSP manages the temporary worker recruitment for an organization and is responsible for the end-to-end management of contingent workforce from strategic planning to off-boarding. A Managed Service Programme gives organizations complete visibility over their non-permanent workforce.
Defining Managed Service Provider (MSP) and Vendor Management Systems (VMS)
- Managed Service Providers or Managed Staffing Providers (MSP) is a third party firm that manages the company’s contingent workforce solutions. An MSP program utilizes a centralized staffing model combining people, processes and technology, keeping in control the healthcare of the staffing resources. MSP’s manage Staffing suppliers who provide temporary workers, Independent Contractors (1099), Statement of Work (SOW) service providers and Freelance Talent. MSP’s can also manage traditional workforce providers, including direct hire firms and Recruitment Process Outsourcing (RPO) firms.
- Vendor Management Systems (VMS) is a technology that allows organizations to enhance the management associated with risk and compliance features required to address the overall needs of any type of organizations. VMS assists in effectively organizing and managing services related to workforce-professional, consultation and contractual. It helps to leverage these services in a more strategic manner to effectively compete for the enterprise human capital management service.
MSP’s - The Key Benefits
- MSP’s provide simplified IT expenses and billing. Many of the programs are available at one low monthly rate. We can get services and support as a part of one package that makes planning and budgeting much easier.
- Managed Service provider helps to have more productive employees, save money and stay ahead of the technology issues. MSPs are not simply a theory for program management, it’s a collection of best practices that have proven to be highly effective in several industries.
- MSP’s protect the data with backup and disaster recovery solutions. According to reports usually within a year, 70% of small firms that experience a major data loss go out of business.
- Many businesses deal with multiple technology vendors. With an MSP, we can resolve the struggle in finding the right people for the right job. MSP gives one point of contact to handle all the issues.
- MSP are known for practicing Proactive management rather than waiting for something to go wrong with the business technology. They monitor IT and anticipate problems.
- Human error accounts for roughly 25% of all IT incidents. When an MSP brings the analytical tools to the table,it helps to track these incidents and develop automated solutions that prevent issues from happening again in the future.
Overcoming IT Challenges with an MSP
- Changing Technology: Technology is changing at a rapid rate and with the advancement of this technology it’s changing the way companies are beginning to operate. We are seeing more and more companies adopt a remote and mobile workforce. In addition to the growth of Big Data, technology is also changing the way IT leaders should be making decisions. They need to shift towards a more analytical approach and make data-driven decisions but figuring out the right tools to collect and analyze that data is going to be a challenge.
- Spending Wisely: Determining which technology to buy is more challenging.But only 33% of IT spends is on technology. This means even after purchasing new technology, we still need to worry about the cost of defining a new process and finding the right people to use and manage that technology and determine the right solutions that will give the best return on investments.
- Optimizing Customer Experience: Think back at dial-up internet or even when you had to wait for more than 10 seconds for a web page to load. Technology is getting faster and IT leaders need to know what to do to continue to optimize this experience. An MSP can help to overcome these problems.
Future in this Industry
MSP’s offer a tried and tested framework for program management. It outlines every step from planning a program to bringing it to a successful conclusion.There is still a lot of friction and inefficiency in this staffing space and a great model is yet to emerge. To conclude
- Programs will revolve around the concept of “total talent management”. Analytics will become more of a focus.
- Contingent labor will be relied upon even more so as to achieve critical business and corporate objectives.
- Industry becoming more “talent-focused” instead of “commodity-focused”.