12 May How to Choose the Right Managed Services Provider
When an employer is considering partnering with a managed services provider (MSP), it’s important to consider whether the MSP has the required processes, personal expertise, and technology stack to manage the organization’s contingent and statement of work (SOW) workforce.
Managed services are one of the fastest-growing outsourced talent acquisition solutions today.
As the world of work remains vulnerable to an uncertain economy, employers across the globe are implementing more forms of contingent workers in their post coronavirus (COVID-19) recovery strategies.
Why? The flexibility of operating a contingent workforce will help employers gain access to talented and qualified workers who can be engaged on a contract basis when the demand for services arise. In turn, this helps save on many of the costs associated with hiring and managing traditional workers.
Why do you need a trusted MSP?
While the rise of the contingent workforce provides many inarguable benefits, it also leaves employers with the complexities of managing temporary workers. A trusted MSP will have the information technology (IT) infrastructure, expertise, and remote monitoring and management solutions in place to provide employers with complete visibility into their contingent workforce.
The right MSP will help a business to streamline and manage its entire contingent workforce by improving efficiency, controlling costs, as well as mitigating the fines, penalties, and reputational damages associated with certain contingent workforce risks.
While early managed services models focused on process improvements and cost savings, more mature MSPs, however, are now seeking ways to increase access and service delivery of talent while reducing time to hire.
What makes a good MSP? The right MSP will also:
- Mitigate compliance risks
- Prevent issues before they arise
- Quickly deal with issues that do arise before they affect internal staff, clients and customers
- Understand the latest security threats
- Deliver exceptional candidate experience
- Meet technology demands
- Review current supplier and vendor contracts
- Manage contingent and SOW contracts
- Provide reporting and analysis
- Manage the supplier base
- Manage and pay staffing suppliers
- Provide strategic advice on key labour trends
- Create and implement tailored workforce solutions customized to an organization
Is the MSP solution right for me?
An effective MSP will require organizations to have a minimum amount of contingent worker spend in order for the relationship to be successful and self-sufficient. When deciding whether or not a provider is the right solution for your organization’s needs, there are some basic and more complex factors to consider.
Firstly, it’s critical to understand how much contingent workers are currently costing your business. It’s a unique number to an individual organization, yet can be difficult to account for, as nearly 60% of contingent worker costs are unaccounted for in the average business.
Choosing the right MSP
If your organization is considering Managed Services, the right Managed Services Provider will deliver a level of service expected of your organization’s key stakeholders, clients, customers and staff – while also helping employers to manage their contingent business needs. Here’s what to consider when choosing a Managed Services Provider:
Does the MSP have expertise in its respective industry categories?
It’s important to make sure to look for an MSP that has tenure in its respective industry categories. A good MSP will have the reputation of being a thought leader and subject matter expert (SME). An organization’s relationship with its MSP should be a long-lasting engagement. As such, it’s also important to ensure the provider has healthy relationships with current clients.
Can the MSP deliver the candidate experience expected of your employer brand?
Negative employer branding makes it all the more difficult for organizations to hire top talent, with 55% of job seekers abandoning an application after reading a negative company review online. Now, more than ever, the candidate experience matters. Good MSPs will execute a comprehensive review of your employer brand and will make sure that your brand architectures are demonstrated at each stage of every engagement with candidates and vendors.
Can the MSP scale to business growth?
A good MSP will understand an employer’s business and business goals. It’s important to partner with an effective MSP that has the technology infrastructure and expertise to contribute to the evolution of your organization. The right MSP should have insights about shifts in technology and up-to-date information about market trends. As such, employers must make sure to determine whether the MSP can maintain and grow their organization’s IT infrastructure to align with business goals.
Does the MSP have a proven track record of maintaining industry best practices?
Services providers must demonstrate that they have the expertise, technology, and experience to follow best practices.
They should know how to follow these industry practices in order to ensure the seamless migration from one existing infrastructure to another. This would result in the application of the latest technology without sacrificing uptime and security. Your MSP should be able to offer customized IT services and solutions that will keep your data protected and your hardware running smoothly.
Does the MSP provide transparency?
Transparency in the MSP’s process in managing your contingent workforce is essential. Employers should have access to all relevant reports and analytics as they pertain to screening and onboarding processes, payroll accuracies, compliance, and more.
Does the MSP have an in-depth understanding of the latest advances in cybersecurity?
The right MSP must be aware of the latest network security threats to an organization’s business and the steps needed to monitor services. At the same time, it should also protect an organization from digital security threats.
What is the MSP’s order fulfillment history?
Engaging talent quickly and cost-effectively is critical. How fast can the MSP fill a job order? It’s important to be aware of the provider’s job order fulfilment rate. This data will help manage costs and improve the quality of contingent candidates.
Will the MSP help the business achieve cost savings?
When an organization partners with an effective MSP, the provider assumes responsibility for the engagement and management of the organization’s current vendors. This provides an opportunity for the MSP to introduce new vendors and negotiate rates with existing ones.
The right MSP will help to achieve cost savings and continuously find ways to increase the access and delivery of talent.
When considering MSP options, it’s important to make sure to choose a provider that can decrease costs, reduce IT, reduce compliance risks, and source and manage qualified talent.
Are you interested in learning more about managed services?
View our case study to gain deeper insights into how Flextrack’s MSP and VMS solutions helped one client company achieve cost saving and compliance.