Subadhra Sriram's Blog

To Outsource or Not? To Be or Not to Be, Part 2

The topic of whether to outsource your MSP has triggered a whole set of reactions. I am really reminded of the “you say po-tay-toe, I say po-tah-toe, I say to-may-toe, you say to-mah-toe” semantics debate, because there is no right answer. As the experts have it, there are a broad set of selections between pure insourcing and pure outsourcing. Different models notwithstanding, there are advantages and disadvantages to both outsourced and in-house MSP models. Last week, I tackled the disadvantages. This week, I list the advantages to each model.

Outsourced In-house
Wealth of experience: A large client base  and geographic reach allows for best practices and market intelligence — like rate card comparison — to be shared, which can help you identify ways to save money. The right culture: Insourced MSPs are easily able to align with culture of the company, building strong relationships with internal stakeholders, increasing program adoption.
Core Competency: An MSP has the industry-specific knowledge to get the right individuals and grow its staff, who in turn help the client to procure high-quality talent at the right rates. No Middleman: Staffing companies give clients a better deal without an MSP in the picture.
Understanding Suppliers:  An MSP is able to manage and motivate suppliers to get the right results.  Faster, regular reviews drive compliance and lead to more adoption Beyond the cookie cutter: An in-house MSP will go above and beyond to develop the right program for the company dependent on business needs.
No competing priorities. The MSP can turn on a dime and offer flexible sourcing models. Third-Party Research: Significant data on changing legislation, trends and benchmarking can be accessed outside of an external MSP.
Unique Skills: A combination of experience and ability lets the MSP not just maximize VMS usage but  keeps the client informed on new trends and legislation. Waning Savings: Years two and three of any program typically show reduced rate of savings.

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