SI Review: August 2013

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You Ask/We Answer

Is VMS and MSP usage still maintaining strong growth?

Question: One of our best clients has recently adopted an MSP with a VMS. Should we expect more of our clients to do the same?

Answer: Buyers’ use of VMS and MSP grew steadily for several years, but their use of vendor management systems and managed service providers seem to have plateaued, according to our annual Contingent Buyer Survey.

Meanwhile, staffing firms report that only about 5 percent of their revenue flows through a VMS. So clearly, there’s a lot of business to be had outside the VMS model. Many staffing firms, particularly niche providers, have been quite successful without VMS. Still others report being able to fill orders for clients that have a VMS outside the system when firms working within the system were unable to fill those roles.

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