Talking Talent Solutions: MSP 2.0: Understanding Second Gen MSPs

Ashley Keaveney
Talking Talent Solutions: MSP 2.0: Understanding Second Gen MSPs

Managed Services Provider (MSP) programs are one of the best talent solutions for companies who are looking to better manage their contingent workforce. The workforce has endured significant changes over the past few years since the onset of the pandemic, and companies’ talent acquisition and management strategies need to be changing with the market. Because of this, a First Generation MSP program is not enough for many companies - they need to consider the benefits of evolving to a Second Generation program to excel in this challenging market.

In this episode of DZConneX’s podcast series, Talking Talent Solutions, Joe McIntyre, our host, and Robin Dahn, DZConneX’s VP of Enterprise Sales, discuss the evolution of Second Generation MSP programs. Robin also shares her expert insights regarding the advantages of a Second Gen program and what companies should look for when selecting a provider.


Listen to our Podcast here: 


Gen 1 vs. Gen 2: The Key Differences 

If your organization is going to make the transition from a First Generation to a Second Generation program, you need to understand the key differences that will make the transition worth it. Robin explains that First Generation MSP providers are essentially just managing transactions for their clients. The provider’s goal is to solve the client’s contingent workforce problems by optimizing the procurement process and delivering cost savings, but limited scalability exists within a Gen 1 program. An MSP only has so many capabilities until they evolve into a Second Generation program.

Once a client decides they want to move into the Second Generation phase of their MSP program, it opens up a world of possibilities. These programs provide a wider range of services to keep up with companies' ever-evolving needs. Gen 2 programs build on what was learned in the first phase and add the appropriate technology enhancements, cost control initiatives, and additional benefits. Robin also notes that now is the time to transition to a Second Generation program due to the increased scalability and flexibility that it offers, which is ideal for today's unpredictable market. 


Considerations for Your 2nd Generation Program

Now we know that it might be best for your organization to switch from a First Generation program to the Second Generation phase, but how do you know when it is the right time to switch? This can be determined by looking at every level of your program to see if your provider is really adding value, engaging with your strategic initiatives, and working through a future roadmap with you. If your MSP is not meeting these criteria, it's time to transition to Gen 2. 

In the podcast, Robin reminds companies to look for Second Gen providers who offer advanced technology and analytics tools, continuous strategic planning, training initiatives, etc. Evaluate how other companies in your industry are benefiting from their MSP programs, and consider working with a provider that can deliver similar services. Simply put, your organization should seek an MSP that genuinely cares about your success and continuously helps your team work toward your unique goals. 


Maximizing the Value of Your Program 

In order to obtain the most value from your Second Generation program, you need to look at the long-term strategic benefits and cost-effectiveness of the program. The scalability and flexibility of an MSP can produce significant cost savings over time - as long as you optimize your program plan. 

Additionally, the program will only be effective if clear and consistent communication and collaboration exist between all stakeholders throughout the entirety of the program. Your company and your provider need to have visibility into all program activities to ensure targets are being hit and the strategy can be adjusted wherever necessary. 

Robin states in the podcast that companies need to prioritize tracking the success of their programs. It is crucial to identify areas for improvement within your program and to allocate sufficient resources to each area. Making continuous improvements will allow your organization to get the most value possible out of your program. 


To conclude the podcast, Robin explains the benefits of a DZConneX-managed program and shares what sets our programs apart from other providers'. She also shares what she foresees as the next frontier for MSP in 10 years and how MSPs need to adapt to our ever-changing world. 

Listen to the full podcast here for additional insights into the Second Generation of MSP programs. 


DZX TTS Second Gen MSP Footer


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