Subadhra Sriram's Blog

MSP/VMS Providers Are Doing Something Right

 It’s a question that often comes up in the contingent workforce management world: Which is better to implement first? A vendor managed system (VMS) or a managed service provider (MSP)? The funny thing is it doesn’t matter: The order of implementation is irrelevant.  That is the conclusion of a just published research report by Staffing Industry Analysts.

The survey revealed that nearly three-fourths (73 percent) of buyers believe that the order in which their VMS and MSP was implemented was most advantageous — regardless of what that order was. Further, there were no significant differences in a customer’s attitude toward their MSP/VMS providers or primary staffing supplier based upon this order.

So if you as a CW program manager are worrying about this — don’t. Just keep going. The bottom line is that these providers understand the challenges of implementation, have worked long and hard to ensure that they understand your company culture and CW program. As a result,customers are happy. That is saying something considering all the issues that can arise when vendors enter the fray.

It is also an indication of the extent to which contingent workforce programs have evolved. There was a time (not so long ago) when hiring managers were dissatisfied with their suppliers and were looking for greener pastures. No longer.  MSP/VMS providers have studied what the buyers want and are definitely doing something right. The numbers speak for themselves.

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VP Global MSP Center of Excellence

Dana Shaw 06/24/2011 06:52 pm

The evolution of MSP and VMS certainly supports your position that which comes first, the VMS chicken or the MSP egg, can happen interchangeably during implementation. What I am finding on the ground more and more, with the most sophisticated global clients that we service, is this: The MSP has the best knowledge and ability to select a tool partner on the client and MSP's joint behalf. Therefore, our clients are relying on us first. MSP, then tool selection, then business requirements post "as is" and implementation.


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