SERVICES
MSP Service
An MSP solution helps you get more from your contractor workforce — without inflating costs. Read our guide to MSPs to learn more.
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
The benefits of using an MSP
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 developed a modular, Human+ MSP solution that gives you the freedom to choose the level of support you need across four key areas: sourcing, engagement and payment, supply chain management, and compliance.
If your needs evolve in the future? No problem. Our solution is designed to scale up or down effortlessly, combining automation with expert insight to match your changing requirements.
Here’s what we can offer in those four areas:
Sourcing
- Redeployment of current contractors
- Building and maintaining talent pools
- AI-supported candidate search and shortlisting
- Multi-channel sourcing programmes
Supply Chain
- Managing supplier payments and relationships
- Reviewing supplier contracts
- Negotiating commercial terms
- Introducing new vendors and streamlining supply chains
Engagement and Payment
- End-date and contract management
- Global contractor payroll services
- Seamless onboarding and offboarding
- Ongoing performance management and reporting
Compliance
- Automated right-to-work checks verified by local experts
- Worker classification reviews
- Background checks and vetting
- Client-specific compliance management
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FAQ's
What is managed service provider recruitment?
Managed service provider recruitment is a model where one partner manages contingent workforce sourcing, supplier relationships, worker engagement, compliance and reporting through a centralised programme.
A recruitment managed service provider typically oversees contractors, temporary workers, project workers and other contingent labour across multiple suppliers or business units. Instead of hiring managers working directly with several staffing agencies, the MSP creates one structured process for requisitions, supplier activity, worker engagement and programme reporting.
This gives businesses better visibility across their contingent workforce and reduces fragmented supplier management. The commercial benefit is greater control over workforce activity, costs and performance while maintaining access to multiple sources of contractor talent.
How do MSP recruitment solutions work?
MSP recruitment solutions work by assessing current contingent workforce processes and then creating a structured operating model for sourcing, suppliers, worker engagement and programme oversight.
An MSP may manage requisitions, supplier submissions, sourcing workflows, onboarding, compliance checks, timekeeping, reporting and invoicing. Technology such as a vendor management system can provide visibility across these activities and support consistent workflows.
CXC’s modular MSP managed service provider recruitment model can bring together sourcing, supply chain management, engagement and payment, and compliance support according to client needs. The result is fewer disconnected processes, clearer ownership and stronger control across the contingent workforce without requiring every function to manage suppliers independently.
What are the benefits of MSP recruitment solutions?
MSP recruitment solutions help businesses improve cost control, supplier performance, talent access, compliance and workforce visibility through one coordinated contingent workforce model.
Centralised supplier management can reduce rogue spend, improve adherence to agreed commercial terms and give organisations a clearer view of supplier performance. An MSP can also support faster access to contractor talent by creating more consistent requisition and sourcing processes across approved suppliers.
Managed service provider recruitment also strengthens reporting, workforce planning and compliance oversight by bringing data and processes into one operating framework. For contractor-heavy organisations, this creates a more scalable way to manage growing workforce demand while giving HR, procurement and business leaders better information for workforce decisions.
When should a company use a recruitment managed service provider?
A company should use a recruitment managed service provider when contingent workforce activity has become too fragmented to manage consistently across teams, suppliers or locations.
Common signs include using multiple staffing suppliers, difficulty tracking contractor costs, inconsistent processes across regions, hiring managers working outside approved supplier channels or growing demand for contingent labour. Weak reporting and limited visibility into supplier performance are also strong indicators.
Managed service provider recruitment can work for both mid-sized and enterprise organisations that need greater structure without losing workforce flexibility. The model creates clearer governance, more consistent supplier processes and better workforce visibility while allowing the business to scale contingent labour according to demand.
How is MSP recruitment different from traditional staffing?
MSP recruitment centralises the management of contingent workforce suppliers, while traditional staffing usually involves working with recruitment agencies individually to fill specific roles.
With MSP managed service provider recruitment, one partner oversees supplier performance, rate cards, requisitions, compliance processes, invoicing and reporting across the wider programme. The MSP may continue working with existing staffing agencies, introduce new suppliers or manage a combination of both.
The focus is not simply filling vacancies. MSP recruitment solutions are designed to improve workforce governance, visibility and programme performance across multiple suppliers and worker requirements. Traditional staffing remains valuable for individual hiring needs, while MSP is more strategic than transactional staffing.
How is MSP recruitment different from RPO?
A recruitment managed service provider focuses on contingent workers and supplier ecosystems, while RPO primarily manages permanent employee recruitment.
MSP recruitment solutions typically cover contractors, temporary workers, staffing vendors, contingent workforce spend and related governance. RPO supports permanent recruitment processes such as sourcing, screening and hiring delivery.
Some organisations use both models because permanent and contingent recruitment create different operational needs. The important distinction is the workforce being managed: MSP supports the contingent workforce, while RPO supports permanent hiring.
How does an MSP improve supplier management and cost control?
Managed service provider recruitment improves supplier management by bringing staffing vendors, commercial terms and workforce activity under one coordinated programme.
An MSP can consolidate suppliers, standardise rate cards, review contracts and track performance through supplier scorecards. This gives procurement and HR greater visibility into which suppliers are delivering quality talent, meeting agreed timelines and operating within commercial expectations.
MSP recruitment solutions can also help reduce rogue spend by directing hiring activity through approved channels and creating clearer reporting across contractor costs. Consolidated data supports better workforce analytics and more informed negotiations with suppliers.
The result is stronger commercial control without making invoice processing the centre of the programme, giving teams a clearer view of workforce spend and supplier value.
How does technology support MSP recruitment solutions?
Technology supports MSP recruitment solutions by giving businesses visibility and process control across contingent workforce activity.
A vendor management system or workforce platform can manage job requisitions, supplier submissions, worker onboarding, compliance documentation, time and attendance, invoicing and reporting dashboards. This creates a consistent data trail and gives programme teams a clearer view of supplier activity, worker status and workforce demand.
Analytics can also highlight trends in fill rates, supplier performance, costs and workforce utilisation. Technology alone, however, does not manage an MSP successfully. CXC combines workforce platforms with Human+ expertise, bringing experienced people alongside technology to interpret data, manage relationships and keep the programme working effectively.
How does MSP recruitment improve compliance and governance?
MSP managed service provider recruitment improves compliance by creating one controlled process for contingent workers, suppliers and workforce documentation.
A recruitment managed service provider can standardise onboarding, worker classification checks, right-to-work verification, background screening where appropriate, supplier compliance and contract controls. Centralised reporting also creates clearer audit trails and helps organisations identify gaps across regions or business units.
This approach supports more consistent governance because suppliers and hiring managers follow agreed processes rather than separate local practices. It does not eliminate risk, but it can reduce exposure to classification errors, missing documentation and inconsistent controls.
What should businesses look for in a managed service provider recruitment partner?
Businesses should choose a managed service provider recruitment partner with strong contingent workforce expertise, supplier management capability, flexible technology and the ability to scale across regions.
Key criteria include experience managing staffing suppliers, local and global compliance capability, transparent pricing, clear governance, reporting technology and strong human support. The right recruitment managed service provider should also offer a flexible operating model that can adapt as workforce volumes, markets and priorities change.
CXC’s modular Human+ MSP approach combines technology with experienced workforce specialists. With 34 years of operation, services across more than 100 countries and a 98% client retention rate, CXC supports programmes ranging from around 30 to 3,000 workers without forcing every client into the same model.
How does CXC support organisations with MSP recruitment solutions?
CXC supports organisations with MSP recruitment solutions through a modular model covering sourcing, supply chain management, engagement and payment, and compliance support.
Our Human+ approach combines technology, workforce data and experienced people to give clients clearer visibility across contractors, suppliers and workforce activity. We’ll help create a structured operating model that can manage sourcing channels, supplier performance, worker engagement and programme governance according to business needs.
CXC’s managed service provider recruitment capability supports both regional and global programmes, helping organisations improve cost control, workforce visibility and compliance oversight as contingent workforce demand changes. The outcome is a more scalable contractor workforce model with clearer processes, stronger control and fewer disconnected supplier and workforce activities.
34
years of operationServices to
100+
countriesPrograms from
30 to 3,000
workers98%
client retention rateSaving costs from
6-14%
99%
payroll accuracyContact us
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.
Australia/New Zealand Head Office
Asia Head Office
EMEA Head Office
North America Head Office
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Level 3, 99 Walker Street
North Sydney, NSW 2060 Australia
