VMS Versus MSP: What To Expect From Each

Firms use significant numbers of contingent workers today — both in staff augmentation environments and in project-based engagements. This increased reliance on contingent workers is fueling renewed interest in two relatively mature markets — vendor management systems (VMS) and managed service providers (MSPs). Previously purchased together as one solution, VMS and MSP offerings are frequently purchased separately today. In response to that separation, as well as to global market changes, both supplier sets have evolved their offerings. VMS vendors have begun encroaching into traditional human resource (HR) software functionality while also building capabilities to handle some lower-level MSP activities. MSPs, on the other hand, have begun moving into more consultative offerings regarding workforce management as well as into data analytics. Buyers considering either (or both) vendors need to take a fresh look at VMS versus MSPs to ensure maximum value in their contingent workforce programs.