Contact Us

More Than Just a Vendor: Choosing an MSP as a Strategic Partner to Drive Success

Sam Smith | June 14 2023 |

Kees Stroomer

Adapting to economic and industry shifts remains a challenge for organizations looking to better manage their extended workforces. As a result, more businesses are turning to Managed Service Providers (MSPs) to optimize their contingent workforce programs. But when choosing the right partner, it is critical that leaders look beyond the tactical and transactional if they want to realize the full potential of these programs.

To maintain true workforce agility, increase program sophistication and exceed organizational goals, businesses need customized solutions and deep expertise. Here are some important factors to consider when evaluating a strategic MSP partner.  

Unique Customized Workforce Programs

Every contingent workforce program is unique to each organization. That is why seeking out an MSP partner that is collaborative in building a tailored program for the business while keeping in mind those individual needs is essential. This will empower leaders to better manage the entire lifecycle of the workforce and better address challenges, no matter where workers are located.  

Check out this case study to learn how a multinational technology company partnered with Magnit to develop a completely new, creative action plan that specifically addressed its contingent workforce management needs.

The Importance of a Vendor-Neutral MSP

Partnering with MSPs that are affiliated with specific staffing agencies can lead to limited talent pools, higher costs and lack of flexibility. On the other hand, purely vendor-neutral MSPs have no affiliation with a single staffing firm. This means that the playing field among staffing firms is leveled out and no single firm is prioritized over another.

A truly independent MSP is also freer to deliver innovative, creative sources of talent beyond traditional staffing and consulting models. As a result, organizations can access wider talent pools in more locations, save on costs as suppliers are incentivized to offer the best rates, and more. Learn more about the benefits of pure vendor neutrality in our solution brief.

Consulting Services and Industry Knowledge

It is important to carefully evaluate an MSP’s consulting services before choosing it as a partner for your business. For example, MSPs with the right expertise can provide guidance on how to navigate managing talent in a rapidly evolving labor market, which can give businesses a competitive edge. In addition, MSPs that have significant, longstanding industry knowledge can better evaluate how effective programs are by understanding and assessing their data. Market intelligence is also key to successfully navigating the talent landscape, and having an MSP with experienced advisors can guide businesses in improving their hiring and retention strategies while maintaining cost savings.  

Learn about the ways an MSP can prepare your business for the future workplace in our blog.

Onboarding, Third-party Payrolling and Compliance Expertise

Partnering with a fully comprehensive MSP will significantly help bring efficiencies and reduce risk to the business. Industry-leading MSP providers are able to handle onboarding as well as payrolling for various worker types and even facilitate employee verifications to ensure compliance with labor laws. They also understand how to best assess the worker classification procedures of staffing suppliers. As a result, businesses can create risk mitigation strategies based on integrated compliance processes throughout their contingent labor programs. This helps companies reduce risk and adhere to labor regulations, which is even more important as organizations continue hiring on a global scale. 

See why Magnit was named an MSP a leader by Everest Group for the second year in a row in its Peak Matrix Report.

Partnering with an MSP

Choosing an MSP goes far beyond tactical or technical capabilities. To select an MSP as a truly strategic partner that will help business thrive, organizations need to carefully consider the MSP’s ability to customize workforce management programs, deliver compliance expertise. provide key industry knowledge and prescriptive analytics, and more.

Unlock your contingent workforce’s full potential when you download our quick start guide.

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.

Your Evolution of Work Starts Here