Definition and classification
A Managed service provider (MSP) is an external provider that takes on the entire program for sourcing and managing an external workforce – including tendering, Provider management, reporting and often looking after several Staffing provider.
MSP vs. VMS – what is the difference?
The MSP is an operating model (one provider manages it), the VMS the software. An MSP typically works inside a VMS. Anyone who wants to stay independent manages it themselves through a neutral VMS – with or without an Master Vendor.
When does an MSP pay off?
An MSP makes sense where a company wants to outsource the operational management of the program entirely and has limited internal resources. The price for that is dependence on one provider – a point that the distinction from the Neutral Vendor addresses.