In the May issue of HRO Today Magazine, our President and Chief Operating Officer, Joan Davison, was profiled as an MSP visionary. In the article, which highlights how Joan is pushing the MSP market forward, she shared her top 5 predictions for what’s to come in the MSP marketplace:
- MSP programs will continue to expand beyond contingent labor to all manner of outsourced services: “MSP programs will truly become the single source for all labor-related, contracted services in order to provide consolidated billing, compliance with policies, visibility and cost-savings. It will be up to the MSP providers to continue to enhance the value proposition for services spend management and to prove to clients that MSP programs have a meaningful application beyond traditional contingent labor.”
- Increased interest in performance based pricing models: “We expect to see increased interest in performance based pricing modes and value stream integration and we will remain focused on being a consultative partner who helps our clients build sustainable value for their contingent workforce programs.”
- More sophisticated service level agreements (SLAs): “Service Level Agreements (SLAs) for our MSP clients often begin with traditional metrics such as cost, fill rate, overtime, retention and compliance and progress to more sophisticated SLAs such as productivity, quality and safety performance. Today, the analytics that we are able to generate for our clients drive enterprise decisions on overall workforce planning strategy for their business.”
- Small and mid-size (SMB) market surge: “We believe that, regardless of size, all clients will benefit from a managed staffing program and an integrated technology platform that provides them with the data, analytics, and management needed to gain visibility and control of their contingent labor program. MSP providers have generally not invested in an effective solution to meet the needs of the smaller market, those with $10 million or less of primarily domestic spend. We expect to be partnered with more small to mid-sized clients 18 months from now.”
- Global Growth: “Using a sound global program governance framework, it is possible to take a client’s corporate goals and agenda and bring them across different regions, lines of business or staffing segments, while still customizing the program to fit the region. While there are important differences between staffing environments, across both geographic locations and staffing segments, there are also overarching similarities in MSP program goals.”
Read the complete article for more on Joan’s predictions.