Key Findings & Highlights:

As part of NelsonHall’s most recent MSP/CWS services research project, Next Generation MSP: Optimizing Contingent Talent Strategies, leading global MSP/CWS services providers were interviewed along with their clients. The survey focused on the vendor’s ability to meet immediate benefits and satisfaction with the vendor’s ability to meet future needs.

The research included a survey of these vendors’ clients from across geographies and industries, of different sizes, and with a varying scope of services and levels of maturity in their sourcing of MSP/CWS services.

In addition to the traditional PESTLE factors affecting the talent acquisition market, there is much talk about the “future of work” and its impact (notably, the five generational workforce and technology as the enabler of work). This complex mix of factors at play has led more organizations to seek the support of MSP/CWS vendors to help them to overcome their hiring challenges. Vendors typically offer a menu of services as part of their MSP/CWS programs. Some MSP/CWS vendors are focusing on specialties in a bid to provide something different, playing to their core strengths. The rapid evolution and choice of suitably robust talent tech/tools have led MSP/CWS vendors to start limiting the number of offerings within their ecosystem, focusing on those that best serve their client mix. As buyer organizations expect more from their MSP/CWS vendors, vendors will need to be able to respond to their needs in a more agile way than ever before.

Over the next few years, there will be a complex interplay of factors shaping the MSP/CWS and broader talent market going forward (from the global talent shortage, what the future of work will look like, and the ongoing sophistication of talent technology/tools). The multifaceted drivers for organizations to engage in MSP/contingent worker programs will continue. Most MSP vendors will offer holistic talent services with learning, and RPO/permanent hiring (as the “building” of talent becomes essential when “borrowing” or “buying” talent does not offer the most appropriate fix). Agility will be critical for future survival.

MSP/CWS services vendors were chosen to help client organizations improve basics (such as cost savings and compliance), improve insights/data/analytics, and access tech/tools advice/consulting.

To gain the clients' confidence in the vendors' ability to meet future needs, vendors need to demonstrate competence in several areas. Apart from the basic requirements (compliance, cost-savings, value-for-money, etc.), organizations sought cultural alignment, expertise, innovation, candidate/customer service, and transformation.