MSP Usage Trending Down
There has been so much hoopla around MSP usage. I, among many others, have recently blogged about the insource/outsource debate. And here’s more fuel to add to the fireworks. Recent Staffing Industry Analysts research indicated that MSP usage has trended down. Additionally, the majority of our 2012 Buyer Survey respondents -- contingent workforce managers in companies with 1000 plus employees — indicated that that MSP implementation is not a priority. Only 14 percent said it was significant.
What does this statistic mean? There are two schools of thought on this. Jon Osborne, SIA’s VP of research and editorial, opines that “We know from our surveys that as spending goes up, there is a sweet spot for MSPs in the mid-range, which is followed by a decline in penetration among the largest-spend buyers.” But he believes that as programs increase their CW spend, it may make better sense to manage it in-house with the help of a VMS. If the CW program involves huge sums, companies want control and don’t want to have to deal with an intermediary — the MSP. The VMS helps get the company the required visibility into the spend. There are managers who buy into Osborne’s observation.
The other perspective is that these large CW programs have been managed by an MSP that deals with a program office. The program office (maybe just 1 to 2 people) has gained in expertise over the years and feels it can handle the management in-house. Why continue to outsource when you can take over the management of it yourself and maybe save money?
Do you think MSP usage is trending down? Tell us your views in the comments below.