MSP – What is a managed service provider and what added value does it offer?

Introduction

Strategic management of external specialists is rapidly gaining importance in times of increasing project work, skills shortages and regulatory requirements. Companies are faced with the challenge of ensuring transparency, efficiency and compliance in a complex market environment – especially in the area of external resources.
As a Managed Service Provider (MSP), Hays offers a structured solution with its Managed Service Program that goes beyond traditional recruiting: It centralizes, digitizes, and optimizes all processes related to the management of freelancers, temporary specialists, and project-based service providers (contracts for work). 

What is an MSP?

A managed service provider is an external partner who takes over the complete management of external personnel deployment for a company as part of a managed service program. This includes the organization, coordination and quality assurance of all processes related to the procurement, management and billing of external employees – often supported by a digital vendor management system (VMS).

What specific tasks does an MSP perform?

As part of our Managed Service Program, Hays acts as a central interface between companies, HR departments and external service providers, providing the following services, among others:

• Needs assessment & tendering processes
• Supplier management and qualification
• Contract and compliance management
• Rate card management & benchmarking
• Digital processing via a VMS
• Performance reporting & analysis
• Billing processes 

The aim is to consistently standardize, transparently map and sustainably optimize the entire process, from the initial notification of requirements through supplier selection, contract design and deployment management to service billing.

For which companies is an MSP suitable?

An MSP is particularly suitable for organizations with complex or decentralized structures that regularly employ external specialists. 
Typical prerequisites for this are:

• Multiple departments with external personnel requirements
• Use of different personnel service providers
• Need for structure, transparency and quality assurance
• Desire for efficient resource management

Both medium-sized companies with growth prospects and large companies with existing supplier structures benefit from a centralized control model.

At the same time, however, the suitability of a managed service program cannot be determined solely by company size or structure. Smaller or specialized companies can also benefit from a targeted, needs-based solution, depending on their individual level of maturity and specific workforce management requirements. A careful analysis of internal processes and challenges is therefore crucial in order to find the right solution for your company.

What are the benefits of an MSP?

Implementing a managed service program delivers a variety of operational and strategic benefits:

• Cost control through standardized procurement processes
• Compliance security through uniform contract and audit routines
• Market transparency through benchmarks
• Process speed through digital tools and automated workflows
• Relief for internal resources through complete operational processing
• Improved data for reporting, control and forecasting to ensure continuous regulatory compliance

In addition, an MSP promotes a cooperative and long-term supplier structure. 

Conclusion: More control, less complexity

An MSP provides clarity and control in an often confusing environment. For companies that want to strategically align the use of external resources, this model is a future-proof response to operational and regulatory challenges.