NEWS AND INSIGHTS
Author: Jen Thiermann
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. This is why VNDLY, a Workday company, has made partnerships a priority, especially our Managed Service Provider (MSP) partnerships.
In the contingent labor space, many organizations will look to an 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 importance of MSP and VMS partnerships, it’s important to first understand the role both plays, 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 VNDLY 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.”
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.
How MSP and VMS Partnerships are Formed
Usually, when a company has decided to hire an MSP to manage their extended workforce program, they meet with prospective MSPs to find the right fit for their 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.
MSPs are familiar with VMS technology and providers, much like they are with vendors and staffing agencies. In addition, MSPs are often the daily users of the VMS, so they rely on having the right VMS in place to meet their customers’ needs. This creates a strong partnership between the MSP and VMS provider, who work together to build out an effective, streamlined workforce program.
Your MSP will be in a position to continually implement program improvements via the awareness and use of new and enhanced functionality releases.
The Value of an Effective MSP and VMS Provider Partnership
An MSP can deliver huge value as experts in the extended workforce space. They’ll consult with you to enhance your talent acquisition and ensure their strategy aligns to your overall business goals. The right VMS complements the services provided by an MSP and supports them in their role. The latest in VMS technology enables MSPs to increase process efficiency, remove manual operations, ensure data security, support compliance across global programs, give businesses complete visibility into contingent labor spend, headcount and location, as well as ensuring robust integration capabilities to connect all systems required for the management of external workers.
When your MSP and VMS are aligned, next-generation technology will be used to the fullest extent of its capabilities and drive the performance of both your MSP and extended workforce program. Your MSP will be in a position to continually implement program improvements via the awareness and use of new and enhanced functionality releases.
For example, Workday partners with an MSP and leverages VNDLY to manage their contingent workforce program. VNDLY provides a robust, customizable VMS platform that provides the MSP technology to efficiently manage Workday’s extended workers.
“Working alongside our MSP and using VNDLY, I see the benefits that come with taking this program approach as well as the results delivered via the strong partnership alignment,” said Kerry Kiley, Senior Extended Workforce Program Manager at Workday. “Because of that existing partner relationship, this allows us to realize even greater program value as our MSP can continually look at ways to optimize.”
With a strong MSP and VMS partnership, Workday receives innovative technology and dedicated program managers who are industry experts. The value of Workday’s program continues to grow, because the partnership between their MSP and VNDLY facilitates collaboration. Making it easier for the MSP to manage Workday’s extended workers, VNDLY to provide world class technology, and Workday to grow their extended workforce program.
Delivering Partnership Success
So how do companies looking to hire an MSP and VMS ensure effective partner relationships? Here are a few characteristics to look for:
- Open, transparent communication: Communication is key and a central component of any partnership. At VNDLY, we aim to share as much information as possible with our MSP partners from business updates through to functionality enhancements. In doing so, we want to ensure they can be even more effective in their roles. This is also about two-way communication. We look at ways for MSPs to contribute and influence the future of the VNDLY roadmap. We actively look for their feedback on what they’d like to see from VNDLY and what functionality would support them in delivering for mutual customers.
- Dedicated partner team: Having a dedicated channel partner management team in place on both the MSP and VMS side shows true dedication to partner relationships. The VNDLY team is there to support the day-to-day of effective relationship building. This gives MSP teams a central point of contact, allowing the two organizations to align on a regular basis and become more proactive rather than reactive in working together.
- Functionality adoption: New features and functionality enhancements are only useful when users know they exist. VNDLY takes a proactive approach in gathering MSP feedback related to our application and uses multiple channels to share information on current capabilities and roadmap items. Alongside this, the usability and user adoption is key when we deliver new enhancements across the solution. Therefore, MSPs can increase their adoption of new features and, as a result, relay benefits as a result back to customers.
When the relationship is functioning effectively, the use of an MSP alongside a VMS can increase the value realization of your contingent labor program. If you are considering working with an MSP to manage your contingent workforce, understanding the partnership between MSPs and VMS providers will help your team find the right providers. Finding partners who are committed to collaboration, and facilitate open communication between the MSP, VMS, and your company will result in better services and a successful contingent workforce program.
If you’d like to learn how VNDLY, a Workday company, is supporting global organizations with the technology and innovations needed to meet growing external workforce requirements, get in touch today.