The Evolution of Managed Service Providers MSP: What is Labour Procurement in 2024?

As the STEM sectors continue to evolve, businesses are constantly on the lookout for ways to optimise. Due to the potential cost and performance advantages, Managed Service Providers (MSPs) have emerged as key partners in this endeavour when approaching workforce management and procurement.

Looking at 2024, MSPs are set to play an even more crucial role in labour procurement, with the most successful providing meaningful cost savings, flexible solutions, and innovative workforce management approaches which align with organisational goals with a focus on fulfilment.

What is an MSP?      

A Managed Service Provider is an outsourced solution to manage an organisation's contingent (contract/temporary) workforce. An MSP covers all aspects of recruitment, from the fulfilment of vacancies to the payment of workers. This includes outsourcing the management of all recruitment suppliers, full invoicing cycle and on-boarding/compliance of workers.

The Expanding Role of MSPs

MSPs have long been crucial in labour procurement and fulfilment, particularly within the manufacturing and engineering sectors. Traditionally, managed service programs were mainly accessible to larger corporations with significant budgets. However, recent advancements in technology and service models have levelled the playing field, enabling smaller companies to tap into these programs for their contingent workforce requirements.

What does an MSP look like in 2024 for STEM?

With the advances in hiring technology, the fluctuations in the market and pressures of cost and compliance, a managed service should be instrumental in a cost-effective and modern approach to workforce management. Here’s what an MSP should bring to the table in 2024;

• Fulfilment – In a candidate driven market, an MSP should have fulfilment at the core, ensuring that companies have the expertise they need to innovate and stay competitive.
• Enhanced Talent Acquisition Strategies – In order to compete in today’s competitive market, the talent strategy should be modern and adaptable, utilising the latest methods and techniques.
• Workforce Planning and Management – Finding a workforce shouldn’t be the only goal, optimising your workforce and planning for future objectives should be a priority.
• Digital Transformation and Automation - Digital transformation reshapes most sectors, and labour procurement is no exception. MSPs are leading the way in using digital tools and platforms to enhance the recruitment and management of talent.
• CSR – Corporate Social Responsibility is something organisations are now aligning their supply chain to, alongside their goals. An MSP should be a partner in these efforts and enable CSR objectives to be achieved from the start of a hiring or onboarding process.
• Market Depth – MSPs are no longer just experts in workforce management, but also in the industry they serve. Your MSP should advise on your industry challenges and needs.
• Cost and Compliance Management – Cost and compliance have always been at the heart of managed services. With increasing costs and legislation throughout 2024, cost and compliance remain a priority.
• Diversity and Inclusion – The benefits of a diverse and inclusive workforce have continued to be proven and more prevalent in STEM. Your MSP should align with your D&I strategy, alongside bringing experience and tools to the table.

Conclusion

As we look to the future the role of MSPs will continue to be instrumental in shaping the future of work, improving operational efficiency, and driving innovation across STEM sectors. We expect to see more advanced technology enter the space, from AI-powered screening and targeted outreach to predictive algorithms for workforce planning.

Most importantly, the expanded access to MSP programs means it isn’t only large businesses that leverage these services. This level of access ensures that businesses of all sizes can benefit from flexible, efficient, and innovative labour procurement solutions, which were once the domain of larger corporations.