The Rise of the “Mid-Market” Managed Services Providers (MSP)

Do you think your contingent worker spend is too low for a managed service provider? Think again. Find out how industry changes could impact your organization.

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Almost 40% of the world’s workforce is considered non-employee. But in the recent past, managed service providers (MSP) focused their attention on clients with spends above $40 million, limiting options for organizations with smaller spends. Luckily, that’s all changing. Find out how the MSP industry is shifting, and why, as a procurement professional, you should be excited.

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An Under-Served Segment

Companies with smaller contingent labor spends (temporary labor, independent contractors, payrollers and statement-of-work), frequently referred to as “mid-market”, typically between $10-$40 million, have not received much attention. Why? The costs of change did not outweigh the benefits, and providers were challenged to profitably accommodate lower spend programs.

Industry Changes

However, many key changes in the marketplace have increased the value and attractiveness of programs for these customers. In a discussion with Bryan Pena, SVP of Contingent Workforce Strategies at Staffing Industry Analysts, we identify four such changes:

  1. Establishing a workforce management program is more of a necessity due to recent legislation affecting employment laws and regulations.
  2. MSP and Vendor Management System (VMS) providers are scaling their programs to accommodate the size of the spend.
  3. More robust technologies, that are more configurable, are providing an adequate and cost-effective technology solution to these previously underserviced markets.
  4. Scaled down service levels, that make more sense for smaller spends, has accelerated the growth of programs.

Benefits of a Managed Program

So, what does this mean for you? If you fall in a smaller spend category, it means that there are finally some program options for your organization. And, If you lack resources and sufficient time, a managed program through a group purchasing organization (GPO) can definitely help.

A GPO program offers increased management, and depending on the GPO partner, you can take advantage of other benefits, like market evaluations, aggregate group rebates, aggressive pricing and comprehensive SLAs.

The CU Program

Whatever your spend level, we have a solution for you. We recently added an additional MSP program with our Minority Certified and Veteran owned partner, The Populus Group, which specializes in managing smaller spends—visit our category page to learn more about them as well as our other MSP partners, Pontoon and Volt Consulting Group.


Tim Holland: Senior Director - Human Resources Solutions at Corporate United
As a member of the Corporate United's Category Management Team, Tim works with our members, and prospective members, in sharing the value of our contingent workforce programs , helping them to evaluate their needs and challenges, and consults with them to choose the right solutions for their unique needs. Tim offers the CU membership expert guidance resultant of his background as a long time, former executive in the staffing industry. Tim is responsible for our numerous programs in contingent workforce including staffing, 1099 and Payroll Management, Managed Services Providers, and our Vendor Management supplier.