Emerging MSPs hit the mid-market sweet spot

Emerging MSPs hit the mid-market sweet spot

In our previous blog, Taking on the mid-market challenge, we discussed the market landscape of the middle market and its challenges compared to larger organizations.


In this final post of a three-part series, we will discuss how the focus from emerging MSPs has shifted to the middle market, resulting in numerous advantages for organizations in this industry sweet spot.



Now for the good news. A growing number of businesses are fully focused on providing world-class contingent labor managed services and technologies to mid-market companies. They understand the challenges introduced above (among many others) and have developed forward-looking solutions that are bringing big-company value to mid-sized companies.


They offer:

  • Mature best practices. Today’s mid-market providers aren’t going to learn on your dime. They’ve gleaned best practices and lessons learned from larger programs that have been improving for decades.
  • Cost savings. As alluded to earlier, businesses that use an effective managed service can expect to realize a minimum sustained cost savings of at least 10%. And, when combined with other innovations (like direct sourcing as explained below), the savings can easily double that or more.
  • Beating the big boys to talent. Large businesses have been slow to adopt some of today’s advanced cost-saving innovations, such as talent pooling and direct talent sourcing. But many mid-market providers have latched onto these practices as a way to help their clients compete for top talent with even the most prominent names in the game.
  • Faster implementation. Built to be nimble, today’s firms can bolt quickly into your operations and help you start realizing the benefits of contingent supplier management almost immediately.
  • Better tech. Many older MSPs leverage technology built for another era. And, despite regular updates, their age shows through ineffective interfaces and poor experiences. Most mid-market-focused providers, however, are newer businesses with technology streamlined for optimal program support.
  • Better terms. Less onerous commercial terms.


Further, using an MSP can help the valuable resources throughout mid-market organizations to get out from under challenges better left to contingent workforce experts.

  • Human Resources. MSPs help HR in its pursuit of a Total Talent Management strategy that embraces contingent labor. They help solve HR’s need for talent by establishing labor pipelines and persistent labor pools, while often offering an added mechanism for finding full-time employees.
  • Finance/Procurement. Today’s providers reduce costs and offer greater visibility into the suppliers serving the company. This enables a simplified means of balancing and optimizing labor rates throughout the organization.
  • Legal. If we’re talking about independent workers, we have to address legal compliance. Today’s MSPs not only address the tax risks associated with contractor misclassification, they can reduce employment and contract risks as well. Any one of these can consume a legal department for weeks when issues arise.



Historically, centralized contingent workforce management solutions—especially ones that included VMS platforms—were out of reach to most mid-sized companies because they were cumbersome to implement and focused exclusively on temporary labor.


Modern platforms, however, enable rapid implementation and manage the entire gamut of the extended workforce, including temps, project workers, outsourced providers, and freelancers. This opens the door for businesses of all sizes to realize the contingent management benefits once reserved for the select few.


In fact, a centralized managed service becomes imperative once a company engages as few as 100 workers via any staffing service arrangement. This typically amounts to about $6 million to $10 million in spend as the entry point for actively managing external labor.


So, if your company has always considered itself too small to benefit from a centralized contingent labor management provider, maybe it’s time to give it a serious look. There’s a host of reasons why so many large companies rely so heavily on their managed services and related technologies. And, now those same reasons can extend seamlessly to your business as well.


To learn more about how middle market companies can benefit from actively managing contingent labor, download our white paper, Contingent Labor Management: New Players Bring Large-Company Value to Mid-Market Companies.