6 Factors to Consider When Changing Your MSP

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6 Factors to Consider When Changing Your MSP

The contingent workforce is on the rise, so choosing a Managed Services Provider (MSP) to manage your contingent labor needs and your talent supply chain is becoming more and more common for successful organizations. But along with that rise in the contingent worker population, is the need to grow and change your existing program. Sometimes, you will find that your program and MSP provider aren’t cutting it anymore. Their performance is just not where it should be. Their customer service is lacking and you need a bigger, better supplier network to cover changes in your workforce. Continuing to work with an MSP that isn’t forward-thinking will not benefit your company’s growth or financial objectives.


6 Considerations When Changing Your MSP 

Your MSP is embedded into your talent acquisition and management program, so changing providers can be messy and difficult. But when you can see efficiencies that need desperate improvements, you will learn sooner rather than later that change is good. Making that transition isn’t as hard as you think — if you approach it correctly from the start.


1. Develop a Communications Plan 

Perhaps the most important step is to communicate the change to your internal team in a timely and sensitive manner. You risk undermining the process if your new provider steps into an implementation meeting only to find out it's the first time the staff is hearing about the change. 

Additionally, the longevity of MSP contracts makes it hard to break off the relationship. Making it clear to your new provider why you're making a change is just as important as it is to communicate the challenges that need to be addressed. The goal is to give your provider a full comprehension of the reasoning to ensure a smooth transition. 


2. Be Prepared to Switch to a New VMS

If the new provider uses a different Vendor Management System (VMS), the system architecture can be vastly different. Prepare yourself for push back from hiring managers and your IT department. Switching to a new VMS technology could increase each area’s workload in the short term as they are being trained and becoming acclimated to the new program. There will be an adjustment period for you and your team, but with proper training and process mapping, the adaptation period can be greatly reduced. 


3. Data Migration & Data Collection from Your Exiting MSP

Asking for some or all of your data from your current MSP can be a complicated process. Keep in mind, all of that data belongs to you. Setting the precedent of an open level of communication early in the process will make requesting it later less awkward. Plus, it will save everyone a lot of time and energy if the providers can communicate directly with each other from the start.

Even if you aren’t switching to a new VMS technology, don’t ignore this step. You and your new MSP provider should discuss the historical data around your program and together decide what data you absolutely need to have migrated and which data would be preferred, but not critical.


4. Choose the Right Leader 

Make sure there is a strong project leader in place for the transition. It's best to appoint someone that has strong relationships within your organization and the ability to work with the new provider to ensure the transition is as seamless as possible. Companies need to be objective and select the right leader who has the ability and desire to make the project a success. Understand the gravity of the change, and then analyze who would be the best person to manage it.


5. Accept Change Management

Accept the change management and trust that the new MSP is there because you need your program to improve. You will often hear your new MSP and new VMS partner say “Our best practice” or “We have seen that 'xyz' is the best way to proceed based on other clients.”

While no two businesses are the same, don’t be afraid to implement suggested change management processes even when you receive pushback. You should feel free to question them and make sure you understand why they are suggesting a course of action; ultimately you and your project manager will need to be an advocate for your company. 

Be sure you are comfortable with their suggestions so you can confidently represent the process to key internal personnel. An MSP contract and relationship is a long term investment, so make sure you do it right.


6. Patience Is a Virtue

Everyone wants to implement their new program quickly, but understand that large MSP implementations, if done properly, can last months. This is dependent on the workforce size and complexity, organization size, locations, supplier networks, data migrations, integration development, etc. Be patient and stress patience within your internal team. Work together with your new provider on a manageable timeline so all necessary steps are taken and the program is started off on the right foot.


Though it seems overwhelming at first, change can lead to substantial savings and organizational improvements through your new MSP. Keeping these 6 points in mind before you get started on a new program adoption will help to make the transition go smooth for all.


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