This blog was originally posted on vndly.com in January 2023.
Collaborative partnerships play a huge role in driving positive business outcomes and delivering real results for customers. Therefore, it’s important to understand the partnership approach of providers that will need to effectively work together to deliver for your organization.
In the contingent labor space, many organizations will look to a managed service provider (MSP) to deliver the best results possible through the effective management of a company’s contingent labor program. In order to deliver on program goals, a vendor management system (VMS) that empowers MSP teams is critical.
The Relationship Between MSP and VMS Explained
In order to understand the significance of MSP and VMS partnerships, it’s important to first understand the role both play, how they differ, and how their offerings complement each other.
For some businesses, it makes sense to outsource the management of their extended workforce program. In these instances, the organization will engage the service and expertise of an MSP. Specifically, MSPs manage the candidate supply chain while facilitating the entire contingent talent life cycle from requisition through to invoicing, usually with a focus on speed, quality, cost control, and compliance.
The MSP will typically:
- Build and manage the complete end-to-end process.
- Ensure the right staffing agencies are in place and evaluate their performance.
- Identify VMS technology that facilitates the new process.
In managing programs, MSPs require technology that simplifies daily management tasks and expedites processes from hiring through offboarding. This is where a VMS like ours comes into play. By facilitating the external worker and staffing agency workflow and providing complete visibility into the status of contingent workers, a VMS enables the MSP to manage their external workforce programs from “req to check.”
How MSP and VMS Partnerships Are Formed
Usually, when a company has decided to hire an MSP to manage its extended workforce program, it meets with prospective MSPs to find the right fit for the company’s needs and budget. Because MSPs require technology to manage the contingent workforce for their clients, they usually reach out to a VMS provider to bring into the sales cycle as a partner.