Many organizations look to a managed service provider (MSP) to manage their contingent labor program. In order to deliver on program goals, a vendor management system (VMS) that empowers MSP teams is critical.
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.
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:
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.”
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.
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.
An MSP can deliver huge value as experts in the extended workforce space. It will consult with you to enhance your talent acquisition and ensure its strategy aligns to your overall business goals. The right VMS complements the services provided by MSPs and supports it in its role. The latest in VMS technology enables MSPs to increase process efficiency, remove manual operations, ensure data security, support compliance across global programs, and 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.
Your MSP will be in a position to continually implement program improvements via the awareness and use of new and enhanced functionality releases.
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 our VNDLY VMS to manage our contingent workforce program. Our VMS provides a robust, customizable platform that includes the MSP technology to efficiently manage extended workers.
So how do companies looking to utilize an MSP and VMS ensure effective partner relationships? Here are a few characteristics to look for:
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.
With Workday’s acquisition of VNDLY just over a year old, Shashank Saxena, co-founder and co-general manager of VNDLY, discusses the future of the vendor system management space and tremendous opportunities for our customers.
More Reading
From tight staffing levels to the public’s expectations for digital experiences, government agencies are dealing with a lot. That’s why they’re embracing new technologies and approaches, such as AI for productivity improvements and skills-based talent management.
Transformative trends promise to impact higher education over the next few years. From AI and digital experiences to the power of data, here’s how higher ed leaders can prepare now for what’s next.
Students on average lose 43% of their credits upon transferring from one institution to another. Learn how higher education leaders can make the credit process more transparent, efficient, and clear so students can more easily complete their degrees.