Tag: talent acquisition

Double-Digit Growth in Managed Service Provider Market May Continue, Driven by Global Demand for Contingent Workforce—Everest Group | Press Relelase

Everest Group report describes rapid evolution of MSP technology model as next-generation digital technologies unlock powerful new avenues of value creation.

The global Managed Service Provider (MSP) market is growing steadily on the back of rising demand for contingent workforce globally. The total annual contingent spend managed by MSP service providers stood at US$127-132 billion in 2017, representing 11 percent growth year on year, and Everest Group predicts growth in 2018 of 10 to 12 percent, with total annual contingent spend reaching US$140-150 billion.

These findings are discussed in more detail in “Managed Service Provider (MSP) – Annual Report 2019: Navigating Through Unchartered Territories: Is the Industry Compass-Ready?.”  This research provides comprehensive coverage of the 2017-2018 MSP market and analyzes it across various dimensions such as market overview, evolving market situation, and buyer adoption trends.

Everest Group research identifies these key themes in the MSP market:

• Clash of MSP and PO: Procurement outsourcing (PO) and business process outsourcing (BPO) providers hold a significant chunk of the global MSP spend and are increasingly clashing with MSPs as they defend their share of the services procurement space.
• Services Procurement: While traditional temporary labor services still constitute a major part of the MSP spend, services procurement / Statement of Work (SOW) spend managed by MSPs is slowly capturing an incremental share of the pie, owing to its rapid growth across regions.
• Total Talent Acquisition: In 2017, the market also witnessed an uptick in the number of Requests for Information (RFIs) for Total Talent Acquisition (TTA). While Europe remains the largest TTA adopter, activity in North America and the Asia Pacific region increased as well.
• Digital technologies: Application of digital technologies in talent acquisition is advancing rapidly, and as contingent workforce across industries and buyer segments is taking different shapes and forms, the role of technology in MSP is becoming all the more crucial.

“Today, analytics is increasingly becoming an integral part of MSP engagements, with a wide variety of use cases such as spend analytics, supplier analytics, workforce analytics and peer benchmarking, among others,” said Arkadev Basak, vice president at Everest Group. “Other next-generation digital levers are typically still in pilot phases today, but we will soon see digital technologies impacting all aspects of talent acquisition, resulting in the transition from a traditional organizational structure to a digitally-enable one.”

***Download the complimentary report abstract.***