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#5 are you ready to expand your managed services program? | MSP staffing series.


elevate contingent workforce success through a broader engagement.

| 5 min read |

A managed services program (MSP) can deliver many benefits when growing and managing your contingent workforce during an uncertain economic landscape. A truly successful program should also be able to generate new value for your organization as you navigate the challenges and opportunities that lie ahead.

For instance, if you implement a solution in one market or business unit, you may want to duplicate the same positive results across the enterprise. In fact, this is a natural part of the MSP process. Many companies seek to expand MSP — whether by scope of services, geographical footprint, work arrangements or business lines.

Expansion may not be always possible, based on factors such as a managed service provider’s competencies, legal restrictions in certain markets or economic feasibility. There may also be an issue of buy-in if there is a different set of stakeholders involved. If you can overcome these barriers, however, the benefits of MSP expansion can be exponentially multiplied. This can occur in a number of ways, including:

1. widening scope of service

When companies adopt an MSP staffing solution for the first time (first-generation MSP), they often look to address only a specific set of pain points. A robust MSP program, however, can improve processes throughout the organization, lifting performance in services beyond the initial challenges. Payrolling, for instance, can be onboarded after a successful launch, or you may want to include statement of work (SOW) services.

2. greater geographical reach: global MSP

Most MSP staffing solutions are launched across a defined geography. Because every country has specific laws regulating contingent workers, buyers of global MSP typically roll out programs in stages across various markets. Some expand the footprint only after an initial launch has proven successful. Expanding MSP to additional markets is one of the most effective ways to ensure consistent contingent workforce practices around the world.

3. new work arrangements

Many employers are adopting a more holistic approach to managing talent, including an interest in SOW services procurement. Growth in independent, freelance and gig workers is also leading some companies to implement managed talent pools and/or human cloud platforms to better engage and manage independent talent types. Your managed service provider can integrate all of these types of talentin your overall contingent talent management strategy for greater visibility and control.

4. adding business lines

Due to complexity or stakeholder resistance, some business lines may not be included in the initial MSP engagement. As the program matures and validates its value and effectiveness, however, it may be expanded to include additional lines of business. This type of expansion is the least disruptive because it simply adds to the existing scope with few changes in service or work arrangements. Of course, additional lines of business that have data challenges or use different types of talent may need more work to integrate under the MSP.

5. total talent management solutions

The most promising evolutionary step in MSP practices is an integrated talent strategy that breaks down talent silos and enables companies to manage both contingent and permanent workers through a single talent model. Either your MSP or recruitment process outsourcing (RPO) program can be elevated to a complete, holistic model that delivers a host of organizational benefits.

Companies that take this approach experience exceptional value as a result of aligning talent acquisition capabilities with business needs. This allows organizations to deploy the most appropriate talent resources at the right time, regardless of whether the talent is contingent or permanent. Your talent strategy partner can support all talent acquisition activities, including talent advisory, fulfillment and reporting.

The result is a consistent, high-touch program customized to your unique culture, industry and geographical footprint.

why grow your MSP?

Since you have invested in an outsourced solution, your organization has clearly demonstrated a forward-thinking approach to flexible talent. Expanding this success to other areas of your enterprise aligns with your overall workforce strategy. Whether you are broadening the services or footprint, by bringing the same processes, discipline and technology together, you can be sure to optimize talent agility for all of your business lines.

Should you decide to embark upon a journey of expansion, be sure to explain what’s involved to all stakeholders. Any program change should be pursued with an in-depth understanding of your company’s current and future talent needs. Consider the following to ensure success:

  • evaluate your current program
    Make sure the existing MSP is stabilized and has achieved its initial goals for your contingent workforce. Unresolved issues will only be magnified when an expansion is initiated so make sure they are mitigated well before you take on any changes.
  • address unique circumstances
    Rather than replicate all aspects of the existing program in a different business unit or geography, consider the unique needs and mandates of the additional businesses. Your managed service provider can help identify those nuances and customize the program as necessary.
  • minimize the disruption
    Implementing new services and launching them in additional lines of business and markets requires a lot of attention from program owners, so make sure you aren’t distracted from the needs of your current program.

driving MSP innovation

As you look to optimize your contingent workforce to ensure a more agile talent model, consider how expansion of an existing MSP can accelerate your goal. You will need to work with your MSP partner to determine the best approach for your expansion, but the new program is likely to roll out more smoothly since you already have a clear understanding of the process, goals and technologies. In the end, you’ll ensure a greater level of consistency and rigor in the management of your flexible workforce.

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