MSP fees continue to be based mostly on the spend managed by the program. In our 2010 Contingent Buyers Survey, we asked respondents how they calculate MSP fees. Sixty-three percent noted they calculate the fee as a percentage of spend under management. Twenty-one percent base the fee on the number of workers, and sixteen percent use other arrangements.
Sixty percent of survey respondents implemented MSP and VMS in tandem, rather than implementing one before the other.
Of those that implemented MSP and VMS in tandem, seventy-five percent believe that to be the optimal method, so there was little buyer’s remorse.