Next-generation MSP: Is your solution still delivering real value in today’s market?
The European Managed Service Provider (MSP) market is growing rapidly. According to Everest Group, the Europe Middle East and Africa (EMEA) region had as much as $470 million in spend in 2014 and could hit the $1 billion mark as early as 2019.
MSPs have become a standard part of contingent workforce management in Europe, but does your solution still deliver benefits to your company? Value proposition is a term used to represent the measure of the benefit a product or service will bring to its customer. This definition is particularly relevant in today’s recruitment market because the value proposition of an MSP must evolve to reflect the rapid change in business imperatives. In short it is important the facets of your MSP incorporate all it can offer in a modern market otherwise it will prove more of a hindrance than a help.
Everest Group’s next-generation MSP
Recent Everest Group research, based on data collected from 13 leading MSP providers, has revealed how the traditional drivers of MSP's value proposition are evolving. So what are the key areas where a next-generation provider can deliver genuine value?
Cost reduction and spend management have always been core components of an MSP, but the focus has tended to be on low-hanging fruits such as operational efficiencies and temporary spend optimization. However, next-generation solutions are extending their reach, developing the ability to affect complete contingent, and, in some cases, permanent, hiring spend. Whether it's identifying consultancy work that could be carried out more affordably by contractors or highlighting long-term contractors who should be made permanent, next-generation MSPs are able to provide a complete, holistic view of your contingent talent. This allows efficiencies to be made across your workforce rather than in the contractor space alone.
This holistic approach encompasses Statement of Work (SOW) spend optimization by ensuring consultancy spend is correctly categorized and as efficient as possible, leading towards streamlined spend management with every aspect of contingent spend under control without any silos.
At Allegis Global Solutions (AGS), we deliver value in this area by offering Services Procurement solutions both as part of a wider MSP program and as a standalone service, depending on the specific requirements of our clients. The latter is the first solution of its kind in Europe and we believe it can deliver significant savings of up to 20% due to the creation of a more competitive environment and proper classification of workers.
Standalone Services Procurement is directly linked to the growing importance of procurement best practices, which is another of Everest's next-generation MSP values. The procurement function is increasingly being unified across countries and business units are becoming more important in non-headquarter, non-key countries. Regardless of whether services procurement solutions are delivered as a standalone service or not, next-generation MSPs are able to offer the visibility and strategic thinking needed to be a true partner for procurement.
What is the role of technology in an MSP?
The role of technology is increasingly important for next-generation MSPs, having an influence on complete contingent workforce management, rather than being limited to basic operations alone. As a vendor-neutral technology provider, AGS is able to provide the best possible Vendor Management System (VMS) for our clients' needs, managing the entire implementation process to ensure the program has a strong technology base from which to build.
Businesses are also increasingly looking to their MSP to provide actionable insights based on analytics. To best deliver this value to our clients, we have developed ACUMEN Workforce Intelligence, a next-generation business intelligence platform, designed to provide our clients, suppliers, and program leaders with the data needed to make informed decisions and to take their contingent workforce management to the next level.
Partners rather than providers
The greatest shift in an MSP's value proposition is a need for something more than efficiency and arms-length management. Essentially, an MSP must become a partner rather than simply a provider. This has long been our approach at AGS. With 30 years of experience at the forefront of contingent workforce management, we know what it takes to implement an MSP program and then develop and evolve it to ensure long-term success.
We believe an MSP should be much more than just a transactional supplier and should instead serve as a strategic talent adviser. This is why we developed the AGS Way, a comprehensive talent acquisition roadmap that provides our employees, and the client hiring managers and candidates they interact with, an incomparable recruiting experience routed in best practices. Our goal through the AGS Way is to make our clients stronger and more competitive in their industry, demonstrating the return on investment provided by their talent acquisition function and AGS.
The world of work is changing fast and we aim to provide a service that allows your business to keep pace with these changes and stay one step ahead of your competitors. The days of MSP being a generic, transactional service are over. Only by working with a provider who serves as a true consultative partner can you hope to unlock its spectrum of benefits.
Do you need an MSP solution that delivers more value to your contingent workforce management? AGS can help; connect with me on LinkedIn today!