The decision to Request for Proposal (RFP) for a Managed Services Provider (MSP) is significant, and the considerations you need to keep in mind vary depending on where you are in your talent journey. Whether you're in the market for a 1st Generation MSP, starting from scratch, or looking for a 2nd Generation MSP due to dissatisfaction with your current partner, this blog will guide you through what you need to know.
Going to RFP for a 1st Generation MSP
When seeking a 1st Generation MSP, you're essentially starting a brand new journey with a talent partner. This decision requires careful thought and consideration.
Here are four key factors to consider:
1. Risk Avoidance: One of the benefits an MSP can solve for your organization is avoiding risks (i.e. worker classification, cyber security access, badge access and co-employment risks). Ensure that the MSP you select has a track record of risk mitigation, compliance, and understands your industry's specific challenges.
2. Visibility Into Your Workforce: A significant advantage of an MSP is improved visibility into your extended workforce. Your chosen provider should offer thorough reporting and analytics tools to help you make informed decisions about your talent and what your organization needs.
3. Optimization of Cost: Cost-effectiveness is crucial. Your MSP should have strategies in place to optimize your workforce's cost while increasing quality talent with reduced cycle times. Be sure to evaluate their cost-saving initiatives.
4. Expanded Access to Pre-Vetted Talent: One of the primary benefits of an MSP is access to a pool of pre-vetted talent. Assess the MSP's ability to source and retain top talent in your industry by working collaboratively with you to create the right supplier strategy.
Going to RFP for a 2nd Generation MSP
Typically, when an organization is looking for a 2nd Generation MSP, it’s either because they must go out to bid per their guidelines or you're dissatisfied with your current talent partner.
Here’s what you should consider if this is the case.
Put the Pressure on Your 1st Generation MSP to Bring Forth Better Solutions: Before switching providers, communicate your concerns and expectations to your current MSP. They may be able to enhance the services they are offering you and address your needs effectively.
Find Out if Your 1st Generation MSP is Offering Continuous Cost Savings: Cost-saving initiatives should not be limited to the beginning of the partnership. Evaluate whether your current provider can continue to provide cost-effective solutions as your talent needs evolve.
If you decide to switch providers, consider the following criteria when choosing your 2nd Generation MSP.
1. Exceptional Service: Exceptional service should be non-negotiable. Ensure that your new MSP is responsive, accessible, and dedicated to addressing your unique needs quickly and efficiently. Always ask for recommendations and referrals!
2. Quality Talent: The quality of talent provided by your MSP is paramount. Assess their ability to source, screen, and place strong talent who align with your organization's requirements. Ensure there is the right supplier strategy in place with regular audits and scorecard reviews to make data driven decisions around adding suppliers and/or optimizing the suppliers in the program.
3. An Innovative Partner: In today's consistently changing economy and marketplace, innovation is critical. Look for an MSP that meets your current needs and adapts to the evolving trends and new technology.
Whether you're looking for a 1st Generation or a 2nd Generation MSP, getting to know your potential partner thoroughly before initiating the RFP process is crucial. Ensure that your criteria align with what they offer to avoid wasting both your and the talent provider's time. Cultural alignment with your organization is also vital for a successful partnership.
Going to RFP for an MSP is a strategic move that requires careful consideration of your organization's specific needs and objectives. Whether starting from scratch with a 1st Generation MSP or looking for improvements with a 2nd Generation MSP, understanding your requirements and aligning them with your potential partner is the key to a successful collaboration.
If you're searching for a talent provider, reach out to our total talent experts today to confidently start your talent journey.