To manage or not to manage. That is the question. This question needs to be posed and answered by every company that uses contingent workers along with a Vendor Management System (VMS) to manage it. As with everything in life, the answer is – ‘It depends!’ A business has every reason to evaluate the requirements and benefits of both options before making a call.
To properly manage a Managed Service Provider (MSP) internally, a business needs to have an efficient internal team that’s capable of evaluating their supply base on a range of criteria, other than cost alone. An MSP offers much more than mere administrative oversight, which is what an internal team definitely offers. To decide if these benefits can be offered by an external team, or foregone in the interest of keeping the MSP in-house, let’s look at the value an external MSP brings in:
Companies have the right to have some of their concerns, listed below, answered by the MSP, and more importantly incorporated into the Service Level Agreements of their contract with the MSP. These include:
Remember that if you do decide to bring in an external MSP, you’ll have to arrange the following conditions to facilitate the MSP’s efforts and ensure the best possible results from the program:
If nearly 70 percent of companies with a Contingent Workforce Management (CWM) program have decided to outsource responsibility to an external MSP, it must be for an extremely beneficial reason. Is now the time to decide if your company should have one too?
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