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MSP The Choice The complexities of contingent labor make outsourcing its management more compelling then ever. For most. By Caroline Storey-Sabetti During the past decade, spend under management by managed The Aberdeen Group suggests, in its 2012 report The Next- service program (MSP) providers has increased significantly. Generation Guidebook to Managing the Modern Contingent Workforce Umbrella, that, "contingent workforce management has become more complex over the past half-decade—and may have exceeded the control of the organizations that use temporary labor to achieve corporate goals and objectives." Using its best-inclass maturity framework, Aberdeen found that 86 percent of firms enjoying best-in-class performance use an MSP solution, versus laggard firms where the percent of MSP usage was just 30 percent. Why is this? MSPs have also changed the way in which companies manage contingent labor and other complex services. In 2012 the Staffing Industry Analysts (SIA) reported that spend under management by MSP providers grew significantly, up 29 percent from 2010 to 2011. Somewhat surprisingly, SIA's 2012 Buyer's Survey found that, despite the ongoing increase in spend under management, MSP usage rates were down slightly across all spend categories. These declines were negligible, ranging from one-to-three percentage points, for all categories except for the largest buyers of contingent labor—those that spend more than $500 million annually. Experience Counts MSP providers have valuable experience implementing multiple It is too soon to determine the long-term significance of the MSP programs that an organization implementing an in-house 2012 MSP usage rates or whether they correlate in any way to an program for the first time does not. As a result, forgoing an MSP increased interest in in-house management by buyers. On the other and managing your program in-house can create a significant hand, the question of why to outsource the management of your learning curve. Even if you have internal resources with staffing contingent workforce to an MSP, versus managing the program industry experience, the relevancy of that experience has a internally, is worth considering. shelf-life. You run the risk of reinventing the wheel to solve [30] HRO TODAY MAGAZINE | APRIL 2013