“Vendor neutrality implies an appropriate division of labor and separation of interests between staffing fulfillment and program management.”
– The Human Capital Institute
Procurement professionals and industry analysts have consistently expressed concern about programs that are managed by one of the participating vendors. The staffing-owned Managed Service Provider (MSP) is a case in point. Staffing-provided MSP programs end up costing more for customers – an average of 8% more – than a vendor-neutral program, as well as underperforming in quality, customer control, compliance, continual improvement, and transparency.
The fundamental issue with staffing-agency MSPs and payroll-firm MSPs is that they are essentially being asked to self-regulate, to continually manage their inherent conflicts of interest between serving customers best interests, overseeing competitors, and providing staff and payrolling services themselves (which generate 5-10 times the margins of MSP services).
