Managed Service Provider (MSP) Business Model

MANAGED SERVICE PROVIDER (MSP) Business Model could transform your business

In these uncertain times, workforce agility, cost efficiencies and the ability to upscale or downsize quickly are becoming more important than ever for cross-border businesses right across the globe.

Yes. Contingent and remote workforce talent can help you to achieve all these goals, and give you access to skilled staff when and where you need them. But many companies soon realise that they do not have the expertise or resources in-house to properly manage all the complexities of a contingent workforce themselves. Too hard. Too confusing. Too time consuming. That’s the main reason many companies throughout Asia and the world turn to an outsourced Managed Service Provider (MSP) – a specialist organisation with the resources, knowledge and expertise to successfully manage their contingent and remote workforce.

The idea of an MSP is not new. Nor revolutionary. Originally, it was associated with IT infrastructure or device-centric services; but proved so successful in terms of improving operations and cost efficiencies that the concept soon spread to other operational areas where continuous, regular management, maintenance and support was required; for example office furniture, procurement and sourcing, training and contingent workforce management etc.

Today, it is commonplace throughout the business world and is even utilised by many companies as a strategic tool to drive cost savings, streamline work processes and enhance efficiencies, as well as introduce new technologies into the business.

The MSP model has been proven exceptionally popular with companies that have a contingent workforce(s) operating internationally, for a number of reasons.

Partnering with an MSP enables to develop a centralized management strategy for your company’s contingent workforce management. An MSP will also ensure you have access to specialised technologies – called a vendor management system (VMS) – to support sourcing, acquisition, management and payment of your contingent workforce, all within one centralized database. This system will also give you access to critical data to improve your hiring decisions, cut costs and improve the efficiency of workers. More significantly, by streamlining and automating a wide range of management processes it will also help you cut costs even further and drive efficiencies across the board.

When you partner with an MSP, you can also choose the service model that suits your business and your budget. Opt for a traditional,  end-to-end or bundled solution that includes a full suite of technologies and services if you simply want to outsource your contingent workforce management program in its entirety – leaving you to focus on your day to day business priorities – or benefit from only the services you need by unbundling it and choosing the solution offering(s) you want.

Unbundling offers a number of advantages. It could help reduce costs. It enables you to retain a degree of control by managing critical aspects of the resourcing process in-house; plus it makes it easier if you want to disengage from your provider down the track. The drawback of unbundling? With different or competing providers, it can sometimes be difficult to manage accountability. Unbundling may also equate to lower service quality because providers are often less knowledgeable working with systems they didn’t develop on their own.

Whether you’re looking for a completely outsourced MSP solution or an unbundled modularized MSP plan, CXC’s delivery model flexibility can help you achieve your contingent workforce management goals.

In addition to choice and flexibility, CXC also offers a range of Global Employment Outsourcing/Professional Employer Organisation, as well as EoR and AoR, (GEO/PEO) service models to ensure a streamlined and customized approach to your workforce management regardless of talent source, as well as clear accountability for all stages of a contingent worker’s contract through a single provider – all aligned to your HR strategy.

With CXC, you team up with a partner with global knowledge and experience across a wide range of contingent workforce problem areas such as recruitment, compliance, payroll and OHS, onboarding and training etc. In addition you benefit from specialised, state of the art technologies and strategies to implement and successfully manage every aspect of your contingent workforce operations, with expert efficiency.

If you’re interested in seeing what CXC can do for you, or if you have any questions about how to improve your contingent workforce program, please contact us today on