Back to BlogWhy more enterprises are turning to MSP recruitment companies to manage contingent talent
How can enterprises stay agile when the global workforce is shifting faster than ever? Contingent labour already accounts for nearly 30% of the average company’s workforce—a proportion set to rise as businesses seek more flexibility in uncertain markets.
Managing this shift will be complex. Fragmented suppliers, hidden costs, and compliance risks are stretching HR, Talent Acquisition, and Procurement teams thin.
To address these challenges, organisations are increasingly partnering with MSP recruitment companies. How do they help with overcoming these challenges? Let’s dive in and find out.
The rise of MSP recruitment companies in workforce strategy
Enterprises are rethinking their approach to talent strategy as workforce dynamics continue to shift.
Permanent hiring alone can no longer satisfy the need for agility, and contingent talent is now a core component of organisational resilience.
In this environment, MSP recruitment companies play a pivotal role, helping businesses manage contingent workers at scale while ensuring compliance, cost control, and operational efficiency.
What are MSP recruitment companies?
MSP recruitment companies act as dedicated partners that oversee an organisation’s entire contingent workforce programme. Their responsibilities include:
- Managing staffing suppliers
- Enforcing compliance with labour regulations
- Streamlining procurement workflows
- Delivering actionable workforce insights
Overall, MSPs provide the visibility and governance that internal HR, Talent Acquisition, and Procurement teams often lack when operating independently by serving as a central hub between enterprises and staffing vendors.
Why enterprises are turning to MSP solutions now
Several converging factors are driving enterprises to seek support from MSP recruitment companies. Skill shortage, for one, is one of the most significant risks facing organisations globally.
At the same time, global compliance demands are intensifying, with misclassification of workers leading to significant and reputational risks. Added to this are mounting cost pressures and the need to achieve more with leaner teams. MSP recruitment companies directly respond to these challenges by:
- Consolidating vendors
- Reducing inefficiencies
- Ensuring compliance across jurisdictions
- Strengthening access to scarce skills.
Who benefits most from partnering with MSP recruitment companies
The value of MSP recruitment companies is particularly evident for HR, Talent Acquisition, and Procurement leaders:
- HR and TA teams gain the ability to reduce time-to-hire while focusing on strategic workforce planning, rather than addressing administrative bottlenecks.
- Procurement leaders benefit from optimised supplier management, improved spend visibility, and consistent compliance across borders.
Together, these advantages empower decision-makers to scale their contingent workforce with greater confidence and agility.
Key business challenges driving the shift to MSP recruitment companies
As the use of contingent talent expands, enterprises are discovering that traditional management approaches are no longer sufficient. Disconnected systems, fragmented suppliers, and region-specific regulations are creating inefficiencies that burden internal recruitment teams.
Complexity of managing contingent talent across borders
Expanding operations into multiple countries exposes organisations to a complex web of labour laws, tax rules, and employment classifications. Without a centralised solution, vendor management becomes highly fragmented, resulting in delays and costly errors.
MSP recruitment companies simplify this complexity by consolidating supplier relationships, ensuring that organisations consistently meet local compliance requirements while maintaining global programme visibility.
Lack of visibility and control over workforce spend
For many enterprises, contingent workforce costs are hidden across different departments, systems, and geographies. This lack of transparency makes it difficult to track spend, measure supplier performance, or forecast accurately.
MSP recruitment companies provide centralised reporting and analytics, giving leaders the data they need to control costs and make more informed strategic decisions.
Compliance risks and worker classification issues
Misclassification of workers remains one of the most significant compliance risks for organisations, often leading to severe penalties and reputational damage. With regulations varying widely between countries, HR and procurement leaders face mounting pressure to mitigate these risks.
MSP recruitment companies address this challenge through:
- Robust compliance frameworks
- Regular audits
- Expert legal oversight
How MSP recruitment companies deliver value
Enterprises that partner with an MSP for contingent workforce management can remove complexity, reduce costs, and gain a clearer picture of their talent strategy. Here’s an overview of how MSP recruitment companies deliver value:
1. Centralised supplier and vendor management
Managing multiple staffing agencies often results in duplicated contracts, inconsistent service levels, and unnecessary costs.
What MSPs can do: MSPs act as a single point of coordination, consolidating supplier relationships into one streamlined programme. This enables enterprises to:
- Reduce inefficiencies caused by fragmented procurement processes
- Negotiate better terms and rates through consolidated vendor spend
- Standardise supplier performance with consistent KPIs and SLAs
- Simplify communication by working through one central partner instead of dozens of agencies
This level of consolidation not only drives cost savings but also improves supplier accountability.
2. Compliance and risk management at scale
Global operations also involve navigating a complex web of labour laws, tax regulations, and worker classifications that vary significantly by country. Failure to comply can expose organisations to fines, legal disputes, and reputational damage.
What MSPs can do: MSPs reduce this risk by offering:
- Robust compliance frameworks tailored to each jurisdiction
- Worker classification expertise to prevent misclassification penalties
- Regular audits and monitoring to ensure ongoing compliance
- Access to local legal and regulatory knowledge through in-country experts
With these safeguards, enterprises can expand their contingent workforce across borders without fear of non-compliance.
3. Data-driven insights and workforce analytics
One of the most powerful benefits of MSP partnerships is improved visibility into the workforce. Many organisations currently operate with siloed data, making it challenging to measure spend to supplier performance.
What MSPs can do: MSPs overcome this challenge by providing:
- Real-time dashboards showing contingent headcount, costs, and supplier performance
- Trend analysis to identify skills gaps and predict future talent needs
- Benchmarking data to compare performance against industry standards
- Actionable insights that empower HR, TA, and Procurement leaders to make smarter, faster decisions
These analytics transform contingent workforce management from a reactive process to a proactive, strategic function.
Strategic benefits of partnering with MSP recruitment companies
Beyond solving immediate challenges, MSP partnerships unlock long-term strategic advantages for enterprises. Overall, organisations gain the agility needed to adapt to changing market conditions while optimising their workforce.
Cost efficiency and elimination of leakage
One of the most immediate benefits of working with an MSP is the ability to control and optimise costs. Many enterprises lose money through inconsistent rates, duplicated supplier contracts, or hidden administrative expenses.
An MSP addresses this by:
- Consolidating supplier spend to leverage economies of scale
- Enforcing consistent rate structures to eliminate price discrepancies
- Providing visibility into hidden costs across departments and regions
- Reducing administrative overhead by centralising invoicing and reporting
Faster access to contingent talent
Speed to hire is crucial when project timelines and business objectives are at stake.
MSPs ensure organisations can access contingent workers quickly and reliably by:
- Streamlining hiring workflows to remove bottlenecks
- Leveraging established supplier networks to access niche and hard-to-find skills
- Reducing time-to-hire through pre-vetted candidate pipelines
- Ensuring quality of hire by enforcing supplier performance standards
Agility and scalability in volatile markets
Uncertainty is now a constant in the global economy, from sudden demand spikes to shifting regulatory environments.
MSPs provide the flexibility enterprises need to adapt by:
- Scaling the workforce up or down quickly in response to demand
- Supporting entry into new markets with built-in compliance expertise
- Adjusting supplier strategies to match changing business priorities
- Building workforce resilience that protects against future disruptions
Overall, MSPs give HR, Talent Acquisition, and Procurement leaders the confidence to respond to challenges without sacrificing compliance or control by enabling agility at scale.
Why choose CXC as your MSP recruitment partner
While many providers offer managed services for contingent workforce programmes, CXC stands out for its ability to deliver compliance, visibility, and scalability across more than 100 countries.
CXC enables HR, Talent Acquisition, and Procurement leaders to manage their contingent workforce with confidence by combining global reach with local expertise.
Global reach with local expertise
Expanding into new markets often comes with layers of complexity, from local tax obligations to cultural considerations that impact how work is delivered.
CXC combines worldwide coverage with in-country specialists who understand these nuances. This ensures enterprises benefit from:
- Consistent global reporting across multiple regions.
- Local compliance expertise to navigate regional labour laws.
- Cultural insights that support smoother onboarding and worker engagement.
- Scalable solutions that adapt as organisations expand or contract their operations.
This blend of global visibility and local knowledge allows enterprises to grow confidently, without being hindered by regulatory or cultural barriers.
Proven compliance and governance frameworks
Compliance will always be one of the greatest risks associated with managing a contingent workforce. As a quick reminder, misclassification of workers can result in significant penalties, reputational damage, and strained relationships. CXC mitigates these risks through:
- Established governance frameworks designed to ensure ongoing compliance.
- Regular audits and monitoring to catch issues before they escalate.
- Specialist legal and tax expertise across multiple jurisdictions.
- Worker classification support to avoid misclassification risks.
Tailored solutions for HR, TA, and Procurement leaders
Every organisation has unique workforce challenges. CXC recognises this by designing MSP solutions that reflect each enterprise’s goals and operating model. Benefits for leadership teams include:
- For HR leaders: Reduced administrative burden, freeing time to focus on employee experience and long-term strategy.
- For Talent Acquisition leaders: Faster access to skilled contingent workers, supported by established supplier networks.
- For procurement leaders: Greater visibility and control of spend, improved supplier performance, and reduced cost leakage.
CXC’s flexible, scalable solutions ensure that leaders across HR, TA, and Procurement gain the tools they need to manage contingent talent with efficiency and confidence.
Ready to transform your contingent workforce strategy?
Managing a contingent workforce in today’s complex business landscape requires more than just oversight—it demands a partner who can deliver compliance, visibility, and strategic value to scale.
Partner with CXC and gain the confidence, compliance, and competitive edge your business needs. Explore how our MSP solutions can work for you—contact us today!
FAQs on MSP recruitment companies
What does an MSP recruitment company do?
An MSP recruitment company manages an organisation’s contingent workforce programme on its behalf. This includes supplier management, compliance oversight, workforce analytics, and streamlining the hiring process for temporary, contract, and freelance workers.
Why are enterprises increasingly using MSP recruitment companies?
Enterprises face growing challenges such as global skills shortages, compliance risks, and cost pressures. MSP partners provide a structured way to manage contingent talent, helping businesses stay agile while reducing risk and inefficiency.
What challenges can MSP recruitment companies solve for HR, TA, and procurement teams?
MSP recruitment companies help HR leaders reduce administrative workload and improve compliance. They also help Talent Acquisition leaders gain faster access to niche skills, effectively reducing time-to-hire. For Procurement leaders, MSP recruitment companies help with centralised supplier management, improved visibility over spend, and the elimination of cost leakage.
How do MSP recruitment companies ensure global compliance?
They maintain robust governance frameworks, conduct regular audits, and provide in-country legal expertise. This ensures worker classification, tax obligations, and labour laws are managed correctly across borders.
What are the main benefits of partnering with MSP recruitment companies?
The main benefits of partnering with MSP recruitment companies include cost efficiency and spend optimisation, faster access to skilled contingent workers, improved workforce visibility and data insights, compliance and risk mitigation, and scalability and agility.
Is MSP recruitment only suitable for large multinational enterprises?
No. While multinational organisations often see the more immediate benefits, mid-sized companies operating in multiple regions also gain significant value from MSP partnerships, particularly in areas such as compliance and supplier management.
Why should organisations consider CXC as their MSP recruitment partner?
CXC combines international scale with local expertise, proven compliance frameworks, and tailored solutions for HR, TA, and Procurement leaders. With coverage in over 100 countries, CXC helps enterprises confidently manage contingent talent, ensuring efficiency, compliance, and workforce agility.
