Who Runs the MSP?
Penny Queller says outsourcing an partner drives efficiency and continuous improvement in your program. Peggy O'Neill argues that in come situations an internally run contingent worker program is the best option.
ARGUMENT: Outsourced MSP can expand clients’ opportunities
By Penny Queller
An external managed service provider provides a vital connection to a constantly shifting market, serving as a valuable source of continuous improvement, lower costs and increased efficiency.
MSP specialists bring clients the beneﬁts of the latest market research, benchmarking and industry best practices. In the trenches of contingent workforce management every day, they serve clients in diﬀerent industries and geographic regions, continually building their knowledge base. They know what works and what doesn’t, as well as what’s new across the CW management landscape. They have wide exposure to the accumulation of knowledge that comes from working with multiple organizations at diﬀerent stages of program maturity, each with a diﬀerent set of vendor interactions and workforce requirements.
Outsourced MSP partners oﬀer the advantages and accountability of a shared services structure. They can spread the ﬁxed costs of program support and performance reporting over multiple clients and have the ﬂexibility to shift resources to meet ﬂuctuating needs. MSP partners have relationships with multiple staffing vendors, giving them greater leverage in negotiating rates on behalf of clients. They are also in a better position to track — and inﬂuence — supplier performance across multiple contracts.
Outsourced MSP partners ensure their clients never put the brakes on continuous improvement. They expand clients’ opportunities for savings and efficiency improvements and ensure they can take advantage of industry advances.
Penny Queller is senior vice president, global solutions for Bartech. firstname.lastname@example.org.
ARGUMENT: Internal capability almost always trumps external cost
By Peggy O’Neill
In some situations, an internally run CW program is the best option.
There are generally a few key areas that inﬂuence an organization’s decision whether to insource or outsource the contingent workforce management (CWM) function. Among them are size, cost and total workforce management.
Size. Outsourcing makes more sense for companies that have a small number of contingent workers because they get the expertise of a professional at a part-time schedule. A signiﬁcant number of contingents increases the management demands to the point where the company needs greater capability and support development for in-house CWM.
Cost. Development of an internal capability will almost always trump the cost of an external ﬁrm over the long term. An external ﬁrm has to charge the company cost plus a proﬁt margin. A well-run internal program should and does not exceed the cost of an externally run function.
Total workforce management. In many organizations, CWM has becoming a signiﬁcant and permanent component of total workforce management (TWM). The value of an internal CWM function becomes more critical over time. Clearly, by creating this function you create the infrastructure and intellectual capital internally, which enables the company to meet current and future demands. Having an internal function provides a company with a better understanding of the nuanced needs of the organization and its hiring managers.
When conditions have been reached that require a company to consider a CWM unit, it is in its long-term interest to establish this internal department.
Peggy O’Neill is director of staffing, contingent workforce at ESPN.