IES Blog

Managed service providers rise in popularity for contingent workforce needs

Posted on June 19th, 2013 Read time: 1 minutes

Buyers of contingent work services are more likely now than they were in 2009 to use managed service providers for their staffing needs, according to a new report. As defined by the Staffing Industry Analysts Lexicon, a managed service provider is "a company that takes on primary responsibility for managing an organization's contingent workforce program." This includes tasks from finding staff to payrolling and employee benefits management for temporary workers.

"What has been established in the last decade is that it's easier for a master supplier to fulfill certain specialized requirements," said Kersten Buck, director of strategic solutions at Staffing Industry Analysts, the firm that produced the report.

The growth in use of managed service providers may reflect the quality of such a solution. A company that needs temporary or contract workers is able, with a managed service provider, to pay one fee and have all of their contingent-workforce needs taken care of by one organization. This allows a company simply to enjoy the benefits of temporary workers and leave their administration to an outside organization. Outsourcing the payrolling and human resources back office work associated with a contingent workforce makes sense for many enterprises, especially those that already find themselves very busy with internal and external tasks.

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