BUYER BEWARE! MSP CONTRACT RENEWAL CONSIDERATIONS.
We've listed below the 10 essential considerations you should think about when renewing your MSP contract.
1. Times have changed. Labor has changed. Technology has changed.
2. A national or global MSP provider will often have fragmented operations, causing serious long-term management and supplier challenges.
3. Consider engaging a single VMS with multiple regional or local MSP providers who already hold strong local relationships and understand your business.
4. Question the “ethics wall” between the MSP and any parent company staffing entity. You might find a few missing bricks! Look closely.
5. An MSP with a staffing entity participating as a supplier often struggles with conflicting internal financial priorities at the expense of the client and suppliers.
6. Contract decisions influenced by industry “awards-for-pay” do an injustice to the MSP industry, suppliers, and clients. Question everything!
7. Clients like to think they are No. 1 – but the reality for most is they are No.1 until the MSP wins their next new client.
8. Beware of the MSP that reallocates (the ‘hula dance shuffle’) your MSP resources to assist with another client’s implementation or program management. The MSP’s internal cost avoidance (a.k.a. an attempt at efficiencies) shouldn’t become your problem!
9. Sometimes it’s the MSP logo you don’t know that is more attentive and more committed to your best interest.
10. DO THE MATH - Imagine the MSP fee as a YOY revenue source. YES, YOU CAN - Implement a hybrid or in-sourced MSP business