The rise of MSPs
According to Staffing Industry Analysts, the adoption of an MSP by companies with more than 1,000 employees has grown from 40% in 2009 to 62% in 2023.
However, Adecco’s research of large organisations in the UK found that most companies feel they can significantly improve their approach to talent management. This includes:
Identifying talent needs/workforce planning (68%)
Attracting talent (71%)
Recruiting talent (66%)
Talent onboarding (60%)
Talent retention (67%)
Businesses are increasingly looking for more than just tactical delivery from their MSP. But how can organisations take their MSP to the next level?
Evolving MSP Offerings
Talent Management Improvement:Companies are looking to improve talent management, including workforce planning, attracting, recruiting, onboarding, and retaining talent.
Strategic Value: MSPs are evolving to deliver more strategic talent-sourcing solutions, driven by better-informed buyers, HR’s interest in contingent workforce value, and technological advancements.
Optimizing MSP Programs
Process Optimization & Expansion: Streamlining processes can lead to cost savings and risk reduction. Key areas for improvement include redefining the scope of the contingent workforce, enhanced compliance, and continuous process improvement.
Data Intelligence: Leveraging data analytics (descriptive, diagnostic, predictive, prescriptive, and peer & market intelligence) to make informed decisions and improve recruitment processes.
Predictive Workforce Intelligence: Using AI and ML to analyze and forecast workforce trends, aiding in strategic workforce planning, talent management, training and development, DE&I initiatives, and total talent acquisition.Post-Pandemic Rebound: The MSP market saw a significant rebound in 2022, with over 20% growth in spend under management.
Key Trends and Strategies
Consulting & Advisory Services: Increased demand for consulting, particularly in SOW and tech consultancy.
Enhanced Compliance & Risk Management: MSPs help manage compliance and risk, reducing visibility issues, rate management problems, and legal liabilities.
Continuous Improvement: Regularly reviewing and optimizing processes to drive innovation and maintain a competitive edge.
Future Outlook
AI and Predictive Analytics: AI is emerging as a solution to improve recruitment efficiency and candidate matching. Predictive intelligence helps in making data-driven decisions, essential for successful talent management programs.
Find out more
These key insights were taken from Adecco’s recent paper, ‘Getting the Most Out of Your MSP’. To access the full report, click the button below.