A Managed Service Provider (MSP) is a company that takes on primary responsibility for managing an organization’s contingent workforce program. An MSP may or may not be independent of a staffing supplier. Typical responsibilities of an MSP include overall program management, reporting and tracking metrics, supplier selection and management, order distribution, and consolidated billing across program suppliers

The first thing to consider is that a company whose main responsibility is managing an organization’s contingent workforce program, must have a particular volume of contingent staff of a certain complexity.

For this to take place, it might probably be the case of a player that may consolidate operations among different countries within the region. Such operations must be performed efficiently by a team of highly specialized and very experienced professionals.

The vast majority of MSPs also provide their clients with a vendor management system (VMS) and may have a physical presence on the client’s site.

A VMS is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services (temporary help as well as, in some cases, permanent placement services) as well as outside contract or contingent labour. Typical features of a VMS include order distribution, consolidated billing and significant enhancements in reporting capability over manual systems and processes.

Our region’s increasing growth and business sophistication shall make MSP and VMS become progressively more frequent names in business strategy discussions. With out any doubts, it is the upcoming challenge on contingent workforce administration.