DIY Managed Service Program - right or wrong for you?
null DIY Managed Service Program - right or wrong for you?
DIY MANAGED SERVICE PROGRAM - RIGHT OR WRONG FOR YOU?
According to an Everest survey, 65% of enterprises are unsatisfied with the performance of their MSP when it comes to innovation. In addition, we recently ran a global market survey and found that over a third of enterprises are not confident in their MSP ability to support them in the next 3-5 years.
I believe this is happening for a few reasons. First, the reason an enterprise originally partnered with their MSP is outdated. They are now expecting a different program than the one they went out to market for seven years ago, but their MSP is still delivering the same service that “won” the client in the first place.
Secondly, many organizations are fundamentally different than when the partnership was established. Take for example a manufacturer who specializes in consumer goods. 10 years ago, they were likely focused on production and logistics, where as now they are three quarters of the way through a digital transformation. The program that was defined and implemented was built around meeting needs that no longer exist. In many cases, the partner who was right for that use case, is not right for the new one.
This is why so many organizations are thinking of changing their provider and in some cases, more radically asking “can I do better” while considering the idea of a DIY contingent program.
I’m a bit biased, but even I can understand the desire to look internal. That being said, there is so much that is often overlooked when it comes to deciding between outsourcing a service like a Contingent Labor MSP and managing it yourself. Below are some details you might be overlooking.
Change management is one of the key pieces overlooked, especially when implementing a program for the first time. A proven change management methodology is key for a program launch, and more importantly, program adoption. If the program is not delivering the desired results right away, or has a poor experience for suppliers and the hiring community, you’ll struggle to regain buy-in.
But, a proven change management methodology is not just essential for go-live or transition, but also for ongoing service improvement and evolution.
Change management is challenging to manage in an internal program, whereas with a partner you can benefit from collective knowledge and what has been successfully delivered to hundreds of clients. You also have the benefit of scale when it comes to technology.
Enterprises operating in countries like the U.S. and India can be difficult to manage seeing as employment and tax regulations change with each state. For instance, in the US, the compliance test for Independent Contractors can change depending on the state you and the contractor operate it.
For multinational organizations this challenge is compounded, and so is the risk.
Without global/local legislative and tax expertise, your organization may be at risk when managing suppliers, contractor management, and even data flow throughout your technology stack. The risk here could go beyond financial damages, while also impacting your brand and reputation in your market.
It’s cliché to say, but it’s also true, technology is advancing at a rate like never before. Everything from Machine Learning to AI and Robotic Process Automation is generating significant opportunities for process efficiencies. While these tools can’t replace the service provided by people, with the proper implementation and strategy, they can streamline transactional based tasks and allow humans to focus on more value added tasks.
This includes technologies that have been around for a long time, like Vendor Management Systems (VMS) or Candidate Relationship Management (CRM). They are very powerful, but also require expert users to optimize them from a process and functionality perspective as well as a legislative and finance perspective.
The moral of the story is that if it failed to deliver the value expected, it is more likely the fault of the users who didn’t have the expertise to use the technology, rather than the technology itself.
People & Infrastructure
Throughout my career I’ve heard individuals say that the success and failure of their MSP is down to the “onsite team”. While I’m willing to concede that the delivery team does have an impact on the success and failure of the MSP, it seriously discounts the continuous training, insights, analytics, and combined experience collected from years of delivering this service across hundreds of global clients. Not to mention the millions of dollars invested in technology advancements.
People deliver the service, but they don’t do it alone. They have access to subject matter experts in legal, finance, supplier enablement, employment law, change management, and data. The service being delivered has been refined over the years to deliver the best program possible to your business.
At the end of the day
If you’re unhappy with your current provider and/or considering managing your contingent workforce program internally, I’d encourage you to consider where you want your program to go, and the value you want it to provide to your business.
From there, consider if you truly have the breadth of expertise, depth of resources and technology budget to operate in house. At the same time, challenge your partner and/or the market to explain how they’ll get you there.
Director of Growth, Americas
Craig brings over five years of Talent Management experience to Hays Talent Solutions. He is passionate about enabling talent strategies that allow organizations to execute on their business objectives and strategies. Sitting at the intersection of Sales & Marketing he’s focusing on growing the Talent Solutions business in the Americas by creating wholistic talent solutions for industry leading organizations.