MSP – Managed Service Provider

A managed services program is a highly effective way for employers to manage their contingent workforces.

Learn more about Managed Service Providers

MSP Solution

Are you doing enough to build a pipeline of qualified contingent talent in the new world of work? From enhancing the hire-to-deploy experience leveraging techniques from the B2C world, sourcing flexible talent directly, to advancing diversity in contingent workspace, learn how you can rethink your contingent talent strategies with MSP 4.0.

What is MSP?

MSP is much talked about in business but what is it?

MSP or a managed service provider is where a business outsources a service to a specialist organisation. While outsourcing is generally used as cost cutting measure MSP can provide many more benefits.

A managed services provider (MSP) is most often an information technology (IT) services provider that manages and assumes responsibility for providing a defined set of services to its clients either proactively or as the MSP (not the client) determines that services are needed.

A managed services program is a highly effective way for employers to manage their contingent workforces. An MSP provider can deliver a host of benefits, including:

  • market expertise
  • process efficiencies
  • technology expertise
  • program scalability
  • compliant practices
  • spend visibility and cost savings

Why choose a MSP?

Typical responsibilities of an MSP include overall program management, reporting and tracking, supplier selection and management, order distribution and often consolidated billing.

MSPs have evolved beyond the traditional role of transactional service providers. Today’s MSP is increasingly transformational: data-driven decision making is now possible across all facets of contingent worker management, supply chain performance, even strategic workforce management.

Benefits of MSP

While MSP solutions are often viewed as cost saving measure there are many benefits that come with implementing an MSP solution.

Improved rate of onboarding and offboarding compliance and worker classification.

Cost Management and reduction through greater visibility.

Increased quality and performance.

The development of alternative sourcing models to attract contingent workers.

Supporting peaks and troughs with a more effective way to manage business cycles.

Support in implementing technology in conjunction with delivering process change.

Our Solution

At CXC we help you grow your business and meet the needs of today’s workforce, with flexible access to high-quality contract and temp talent through our Managed Service Program (MSP) solution.

Our solution supports temporary, contractor and statement of work to fulfil all of your contingent hiring needs. CXC’s tailored solution scales with your organisations needs through the peaks and troughs of your hiring cycle.

Our MSP solution has been successful managing 20-100 contingent workers for organisations. Our speciality managing small and medium sized contingent workforces has increased visibility, quality and cost savings for our clients.

Types of MSP

There is no one-size-fits-all MSP solution, we help businesses select the right model while managing the risk and impact. While legislation varies from country-to-country, there are generally three main types of MSP solutions.

Vendor Neutral MSP

As the name suggests Vendor Neutral has a complete separation between the MSP and the supply chain i.e. vendors and suppliers.

Master Vendor MSP

Master vendor is where the MSP also prioritises the supply of workers through one single proivder typically the MSP provider. In instances where the supply is exhausted a secondary supplier can be engaged.

Hybrid MSP

Many organisations needs for staffing change over time. A hybrid model MSP allows businesses to implement elements of vendor neutral and master vendor services combined into one MSP solution.

Case Study

The Situation

Across Europe, our client, a global aircraft manufacturer, faced rising contingent worker costs business wide.  Before engaging with CXC, our client’s contingent workforce management had led to inflated margins, non-compliant practices, potential risk and process inefficiencies.

The client had no ability to report on their contingent workforce within the business and no standardisation to their approach to suppliers. Each supplier had varied margins and contracts held at country level.

The Client required a new model that allowed them to have full visibility of their contingent worker population across each country with a streamlined process to recruit and hire. The business also required  the ability to lower contingent worker costs whilst remaining competitive and fully compliant at all times. In addition, standardisation of supplier agreements  and margins.

In 2018, CXC working with a  partner, implemented an MSP programme in Germany, Poland and Sweden for all contingent workers. Using Beeline as the global VMS tool chosen by the client, CXC negotiated new contracts and took full responsibility of the entire supply chain to enable central management of suppliers and the contingent workforce.

After a successful programme launch in February 2019, the client outsourced to CXC their Global Navigation Services (GNS) departments full recruitment and assessment centre programme based in Poland.

The Results

  • Efficient screening process with directly sourced candidates, filling on occasion assessment centres with 5 days’ notice
  • Improved manager experience due to one stop shop direct sourcing process
  • Compliance with taxation and local legislation in country
  • Improved candidate experience
  • Process efficiency and improvements
  • 100% of Invoices sent on time and 100% of  suppliers paid on time – 33 suppliers in total
  • Streamlined invoicing process with one invoice per country issued by CXC, demonstrating more detailed and accurate spend data
  • Monthly statistics circulated by country to each of the key stakeholders for analysis and support with forecasting
  • 100% of GNS workers employed by CXC paid on time every month

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