Managed Service Provider (MSP)

A managed service provider (MSP) is a company that manages another organization's contingent-workforce program — coordinating multiple staffing suppliers, usually with the help of a vendor management system.

An MSP acts as a single point of contact between a large employer and its many staffing agencies. It distributes job requisitions to suppliers, manages the competition among them, standardizes rates and terms, and consolidates reporting and invoicing.

MSPs are typically used by enterprises with substantial and ongoing contingent-labor spend. For most small and mid-size employers, working with agencies directly is simpler and more cost-effective.

Related terms

Related staffing services