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MSP Service

An MSP solution helps you get more from your contractor workforce — without inflating costs. Read our guide to MSPs to learn more. 


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Building a contractor workforce is hard.

Using contingent labour can help your organisation to save money, access high-quality talent and build flexibility into your operations. But building and managing a contingent workforce comes with a whole host of challenges, costs and risks. 

An MSP solution can help you overcome these challenges and confidently grow your contractor workforce.

What is a managed service provider?

A managed service provider (MSP) is a specialist organisation that delivers, manages and optimises business-critical services for another organisation. Traditionally, MSPs provided outsourced IT services to companies without the internal infrastructure or resources to manage this themselves. 

But an MSP is also an effective way for businesses to manage their contingent workforces, allowing them to reduce costs and increase efficiency.

How does an MSP work?

An MSP handles the sourcing, hiring, onboarding and management of a business’ contingent workforce. At CXC, for example, we begin by assessing your current processes, identifying opportunities to improve efficiency and cut costs. We’ll then build a custom solution and provide ongoing support to your business. 

Depending on your needs, our MSP solutions might include: 

Sourcing, vetting and compliantly engaging contractors
Building candidate pools 
Reviewing supplier contracts and negotiating better rates
Introducing new vendors
Providing workforce analytics and insights
Managing and paying supplier invoices
Advising on labour market trends

Types of MSP

Vendor-neutral MSP

In a vendor-neutral model, there’s a complete separation between the MSP and the supply chain. The MSP doesn’t prioritise any one particular supplier, but engages workers from whichever one offers the best price or conditions. 

A vendor-neutral MSP may work with your existing suppliers or introduce new ones. 

Master vendor MSP

A master vendor MSP prioritises a single, primary supplier when sourcing workers. The supplier is almost always the MSP itself or a staffing agency affiliated with it. 

Under this model, the MSP will only turn to other suppliers if their primary vendor can’t provide the workers you need.

Hybrid MSP

A hybrid MSP takes elements of both vendor-neutral and master-vendor programs. For example, the MSP might have a primary supplier that they prioritise for technical roles while sourcing workers for other roles from different vendors.

This model also allows for changes to the client’s staffing needs over time.

Is a managed service provider the right solution for your business?

An MSP might be a good solution for your business if:

You need to quickly scale your workforce up and down in line with seasonal or rapidly changing needs
You want better control over your supply chain and your staffing costs
You need to ensure greater compliance and risk management
You want access to detailed reporting, workforce analytics and insights

Cost savings

MSPs introduce new vendors and negotiate better deals with the ones you have, which could significantly reduce your staffing spend. Plus, MSPs typically issue you with one global invoice, and handle supplier payments themselves — saving you time and confusion.

Governance and compliance

MSPs understand the legal and compliance issues that apply to non-permanent workers. That means your risk of things like worker misclassification is vastly reduced when using an MSP vs managing your contingent workforce in house.

Access to tech

An MSP will use various tools and technologies to find and engage the best contractors for your organisation. Often, you’ll also be given access to a vendor management system (VMS): a piece of software that lets you keep track of your contractor workforce.

Process efficiency

When you work with an MSP, you can manage your entire contractor supply chain through one point of contact. This simplifies things from an HR and admin perspective, freeing up your time to focus on what’s important.

Access to talent

MSPs are experts in attracting talent, even in competitive markets. Master vendor MSPs typically have large pools of pre-vetted, pre-qualified candidates ready for you to tap into. And vendor-neutral providers can introduce you to new vendors that you may not otherwise have been able to access.

Flexibility and scalability

With an MSP, it’s easy to quickly ramp up your workforce when you need it, and scale it back when you don’t. That means you’re never left short-staffed, and won’t have to waste money paying for workers you don’t need at quieter times.

CXC’s MSP solution

We understand that every organisation is different. 

That’s why we’ve created a modular, à la carte MSP solution, which lets you choose the level of support you need in four key areas: sourcing, engagement and payment, supply chain management and compliance. 

And if your needs change in the future? No problem. 

Our solution is designed to scale up and down to match our clients’ requirements.

Here’s what we can offer in those four areas:


  • Redeployment of current contractors
  • Building candidate pools
  • Augmented recruitment
  • Multi-channel sourcing programmes

Supply Chain

  • Managing supplier payments
  • Reviewing supplier contracts
  • Negotiating commercial terms
  • Introducing new vendors

Engagement and payment

  • End-date management
  • Contractor payroll services
  • Onboarding and offboarding
  • Performance management


  • Right-to-work checks
  • Worker classification
  • Background checks
  • Client-specific compliance requirements


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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.