Managed Service
Programme (MSP)

All in one solution
for your workforce management

Freelancers, contractors, independent consultants, temporary workers or gig workers. The approach to contingent workers is changing and they’re no longer just a temporary alternative to permanent employers. Instead, the use of contingent workforce is quickly becoming a tangible, strategic priority for many organisations – and as the demand for flexible, scalable talent solutions grows, many organisations look for ways to control the chaos.

Our Managed Service Programmes (MSP) represent the next generation of workforce solutions – we ensure well-organised and efficient management of your external personnel and consultant providers, by digitising and automating your entire procurement process and bundling your suppliers. Our focus is to enable your organisation to re-imagine your talent supply chain, to deliver the right talent, at the right time and for the right cost. All whilst still delivering the risk mitigation, reduced complexity and performance management you would expect from a traditional Managed Service Provider.

What's an MSP?

A Managed Service Programme (MSP) is a solution that helps companies effectively manage their contingent workforce; providing administrative relief.

In simple terms, an MSP provider takes over the complex process of sourcing, hiring, managing, and making sure temporary and contract workers are paid on time. While also ensuring compliance with legal and regulatory requirements and providing detailed reporting of results – and opportunities for improvement.

What's a VMS?

At the heart of an MSP is the Vendor Management System (VMS) – a software platform that handles everything from tracking job requisitions to managing contracts, timekeeping, and invoicing. The VMS acts as the digital backbone of the MSP, helping you maintain control and visibility over your entire contingent workforce.

How is an MSP different from a Preferred Supplier?

An MSP is the holistic solution. It provides end-to-end management of your entire contingent workforce, including interacting with other suppliers and agencies who provide contingent workers.

The MSP works as a go-between, ensuring a smooth flow of communication and making sure all suppliers meet your organisation’s standards and requirements. While making sure your access to specialists is unrestricted by agency loyalty or contracts.

How can I save costs through an MSP?

The costs of contingent workers often fly under the radar, leading to budgets being stretched without anyone realising it. Since these expenses are usually tracked at individual cost center levels, it can be tough to see the full financial picture.

This is where an MSP can really help. MSPs use large amounts of data to track and analyse contingent worker costs, supplier performance, and compliance. By negotiating better rates through scale, keeping a close eye on supplier results, and ensuring transparency of contract costs, MSPs can uncover areas for savings.

Additionally 91% of MSPs are mainly supplier-funded*. In short, this means the management fee owed to the managed service provider (e.g. Hays) is absorbed by the suppliers, through renegotiation of fees by said service provider.

*Survey by SIA (Staffing Industry Analysts)

The different types of MSPs

Master Vendor

You rely on your provider to supply you with most of your contingent workforce, only working with other suppliers if needed. A better understanding of your needs can be fostered and you’ll have more predictable spending.

Neutral Vendor

All suppliers are treated equally. Your provider will control the supply chain. Often drives competition and consequently lower rates, but too much competition can also cause suppliers to be less inclined to compete.

Hybrid Model

Best of both worlds. For your core roles you’ll often only have one supplier, while more suppliers may be leveraged for roles less often recruited for. Especially efficient for global MSPs.

Is it time to make a change in how your organisation manages its contingent workforce? If you’re already grappling with things like compliance issues, ballooning costs, or a lack of visibility into your workforce data, the answer might be “yes.” But is a Managed Service Programme the right solution for you? And if yes, how do you secure the buy-in from your key stakeholders? Let’s break it down.

Signs it's time for a change

Inconsistency & compliance issues

Are contingent workers handled differently in each department? Inconsistency in the approach to procuring and deploying contingent workers can lead to employment risks. Treating freelancers like permanent employees can create co-employment risks, exposing companies to tax, intellectual property, and legal issues.

Uncontrolled costs

The absence of a structured Preferred Supplier List (PSL) in a fragmented supply chain can result in cost overruns. This issue is exacerbated by ad-hoc supplier appointments and preference-based hiring.

Supplier chaos

Are too many suppliers running the show with no clear oversight? Unstructured supplier engagements can lead to invoice issues, missing purchase orders, payment delays and increased workload. Manual processes and varied ways of coding costs for contingent workers hinder accurate reporting.

Limited data & insight

Owing to the usage of multiple suppliers, companies often have no clear data and insights on the overall state of the non-permanent workforce. Dealing with multiple processes and systems with no common reporting system and manual data collection is not only time-consuming but leads to mistakes and overspend.

Talent procurement challenges

Can’t find the right skills? One of the major benefits of contingent workforce is the on-demand nature. If your current supplier have issues finding the right freelancers or convincing them to work for your company, they may not effeciently be tailoring their messaging to your target group.

Is an MSP the solution to your problems?

Once you've recognised the signs, the next step is evaluating whether an MSP fits your organisation's needs or if optimising your internal processes and policies may do the trick. The key here is understanding both the scale and complexity of your contingent workforce.

Scale & complexity

How many contingent workers do you have? Where are they based? Are they short-term contractors, long-term consultants, or a mix of both? The larger and more complex your contingent workforce, the more likely you are to benefit from an MSP. It’s not just about handling volume — it’s about having the right structure in place to manage it effectively.

Scalability & flexibility

If your business experiences seasonal spikes in contingent hiring, or you need to scale up fast to meet project demands, an MSP can provide the flexibility you need — from someone who understands your business. An MSP gives you access to a curated talent pool, while also allowing you to scale back when demand subsides, without the headache of managing it all in-house.

But before diving into an MSP, it’s crucial to know exactly what you want to achieve. This isn’t just about deciding whether an MSP is a good idea or if it could relieve some of your challenges — it’s about defining what success looks like.

Set clear goals

What are the top pain points you want to address with an MSP? Cost savings? Better compliance? On which parameters? Improved supplier performance? Improved insight into your consultant usage? Better onboarding and offboarding? Whatever it is, make sure it’s clearly defined from the outset.

KPIs for success

Without metrics, how will you know if the MSP is delivering results? Establish key performance indicators that align with your goals — whether it’s reducing time-to-hire or increasing savings on contingent labor costs. These KPIs will be your north star, guiding you and your MSP provider towards measurable success.

At the end of the day, deciding to implement an MSP isn’t just about solving today’s problems — it’s about future-proofing your workforce strategy. A well-managed contingent workforce can be a major asset, giving your organisation the agility it needs to thrive in a fast-changing environment. The first step is recognising when it’s time for change, and the second is making sure everyone — from HR to procurement — is on the same page about why that change is necessary.

When those elements align, you’re well on your way to a more efficient, compliant, and cost-effective contingent workforce model.