Glossary · Operations
What is MSP
Also called: managed service provider.
Definition
A managed service provider runs a client's contingent workforce programme and sits between the client and its supply chain of staffing agencies.
Applies to: US and UK · Reviewed by James Doyle
In practice
MSP programmes give access to volume and predictable requisitions, at capped rates and with a supplier fee deducted. They are a scale channel, rarely a margin channel.
Read the tiering rules before joining: a tier-three supplier on a released requisition is often looking at roles that two other agencies have already worked.
Related terms
VMS
The software an MSP or enterprise client uses to distribute requisitions, collect timesheets and process agency invoices.
ReadFill rate
The percentage of client requisitions you actually fill. It is the single metric that decides whether you keep a contract at renewal.
ReadGross margin
The share of the bill rate left after paying the contractor and their employment burden. It is the money the agency actually runs on.
Read
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