MSP 4.0: the Future of Contingent Workforce Management | Market Insights™
December 16, 2021
MSP 4.0
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MSP 4.0
VIEW THE FULL REPORT
While still nascent in its use for talent acquisition, blockchain has the potential to revolutionize transactional aspects of the recruiting process
Evolution in the role of MSPs and the services they offer
Buyers are requesting that service providers address both their permanent and contingent hiring, bringing the TTA model into play. TTA offers a wide range of benefits, but challenges remain, limiting the speed of adoption.
Direct sourcing involves leveraging the employer brand to create internal and external talent pools to source candidates. Either the employer company itself or the third-party provider can manage the talent pool.
PO BPO vs. MSP: Clash of the Titans
Spend on third-party services is huge and growing, bringing attention to the need for better spend management capability.
Enter the titans of third-party services spend management – contingent workforce MSPs and Procurement Outsourcing BPOs. Given their history and expertise, these types of service providers are well-positioned to help manage this spend, but they have varying capabilities that are vital to understand when choosing between them.
The MSP and Contingent Labor Markets
Spend on third-party services is huge and growing, bringing attention to the need for better spend management capability.
Enter the titans of third-party services spend management – contingent workforce MSPs and Procurement Outsourcing BPOs. Given their history and expertise, these types of service providers are well-positioned to help manage this spend, but they have varying capabilities that are vital to understand when choosing between them.
US-based companies pushing to expand their MSP (managed service provider) roll-outs globally were the main drivers behind double-digit growth in the MSP global market in 2018.
In a statement sent to recruiter.co.uk, Vishal Gupta, practice director at Everest Group, concurred with Smith’s explanation for the growth in the market, before going on to outline some additional drivers. These included MSPs’ ability to source hard-to-find talent, and minimise non-compliance, “a significant surge in adoption of MSP by SME enterprises”, as well as an extension in categories of spend managed by MSPs or in services provided by them. Among the expanded services being offered by MSPs are services procurement.
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