Let's know in detail about MSP (Managed Service Provider) in Staffing Industry
What is MSP (Managed Service Provider) ?
MSP (Managed Service Provider) comes into picture in the staffing industry while handling contingent workforce. MSP is kind of business model in which you one company (Specialized company) handles all the aspects of contingent workforce of another company.
MSP business model is still evolving in most of countries.
Few players in MSP domain are as follows - Pontoon solutions, Randstand, Hays, ProUnlimited, Alegis etc
Benefits of MSP (Managed Service Provider) for any organisation :
1) It helps in risk mitigation : Nowadays most of the MNC's have global presence due to their diverse business activities. As each country has their own rules and regulations it is becoming difficult for companies to understand the complex policies and to be compliant. An expert MSP player helps companies to be in compliance with regulatory bodies.
2) Helps companies to focus more on their core businesses : Handling of contingent workforce (contract labors) is very tedious if the organisation is very big with thousands of contract laborers. For example, if you consider a FMCG (Fast Moving Consumer Goods) companies their core business is production of goods for consumers. If they adopt MSP business model, they can focus more on R&D of their products and increases their profits, rather than wasting huge sums of money on handling contingent workforce.
3) Helps to safeguard the brand of a enterprise : In the modern economy job security is very scares. We often here companies laying off their employees maybe due to recession or cost cutting initiative from top management. If the company is a publicly listed one, it creates volatility in the stock market, whenever there is mass layoff of the workforce. In-turn it affects the stock value and market capitalization and decline in brand value. To safeguard the brand, most companies go for MSP in staffing. Since all the contract employees are under third part payroll even if there is mass layoff there is no damage to the enterprise.
4) Cost effective : As MSP providers have many vendors/suppliers under their umbrella the beneficiary company or organisation which adopts MSP gets cheaper workforce with competitive rates, which helps in reducing the overall cost of contract hiring.
5) Vendor neutrality : MSP players are like the gatekeeper of the process, they help to achieve the vendor neutrality while get the talented pool of candidates in competitive price. It also eliminate the insider dealings in a organisation. No favoritism in choosing vendors or suppliers to program.
6) Streamlining the contract workforce : MSP helps in streamlining contingent workforce process. So that it gives you accurate information of total money sent of the contractor laborers, active workers at any given point of time, over spending in a particular department and much more. So that it helps in making business decision of a organisation.
What is MSP (Managed Service Provider) ?
MSP (Managed Service Provider) comes into picture in the staffing industry while handling contingent workforce. MSP is kind of business model in which you one company (Specialized company) handles all the aspects of contingent workforce of another company.
MSP business model is still evolving in most of countries.
Few players in MSP domain are as follows - Pontoon solutions, Randstand, Hays, ProUnlimited, Alegis etc
Benefits of MSP (Managed Service Provider) for any organisation :
1) It helps in risk mitigation : Nowadays most of the MNC's have global presence due to their diverse business activities. As each country has their own rules and regulations it is becoming difficult for companies to understand the complex policies and to be compliant. An expert MSP player helps companies to be in compliance with regulatory bodies.
2) Helps companies to focus more on their core businesses : Handling of contingent workforce (contract labors) is very tedious if the organisation is very big with thousands of contract laborers. For example, if you consider a FMCG (Fast Moving Consumer Goods) companies their core business is production of goods for consumers. If they adopt MSP business model, they can focus more on R&D of their products and increases their profits, rather than wasting huge sums of money on handling contingent workforce.
3) Helps to safeguard the brand of a enterprise : In the modern economy job security is very scares. We often here companies laying off their employees maybe due to recession or cost cutting initiative from top management. If the company is a publicly listed one, it creates volatility in the stock market, whenever there is mass layoff of the workforce. In-turn it affects the stock value and market capitalization and decline in brand value. To safeguard the brand, most companies go for MSP in staffing. Since all the contract employees are under third part payroll even if there is mass layoff there is no damage to the enterprise.
4) Cost effective : As MSP providers have many vendors/suppliers under their umbrella the beneficiary company or organisation which adopts MSP gets cheaper workforce with competitive rates, which helps in reducing the overall cost of contract hiring.
5) Vendor neutrality : MSP players are like the gatekeeper of the process, they help to achieve the vendor neutrality while get the talented pool of candidates in competitive price. It also eliminate the insider dealings in a organisation. No favoritism in choosing vendors or suppliers to program.
6) Streamlining the contract workforce : MSP helps in streamlining contingent workforce process. So that it gives you accurate information of total money sent of the contractor laborers, active workers at any given point of time, over spending in a particular department and much more. So that it helps in making business decision of a organisation.
Let's know in detail about MSP (Managed Service Provider) in Staffing Industry
Reviewed by Admin
on
October 27, 2019
Rating:
Reviewed by Admin
on
October 27, 2019
Rating:
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