Let’s face it, the Managed Service Provider (MSP) and non-employee labor market are competitive and can sometimes leave the vendors feeling transported back in time to 1964 -- ROCK 'EM SOCK 'EM ROBOTS®, a world favorite by Mattel. In the center ring, we have... MSP vs. Vendor
Most of us have experienced the game either 'in the ring, or ringside' watching what can sometimes put a vendor out of business.
The game begins when economic conditions shift, Customer growth slows, and pressure is on the MSP to deliver cost savings.
The 'scramble' - the MSP and vendors begin closely scrutinizing margins, often making reactionary operational adjustments, and everyone is stressed to deliver more with less.
Customer pressure continues creating an immense strain on the MSP/Vendor relationship. Depending on the strength of the Customer and vendor relationships, the MSP can begin trending away from the once role of proactive partner and quickly turn reactionary. A reactionary (emotional) response damages the long-term customer and vendor relationship – and that's when the Rock ‘Em Sock ‘Em Robots take over, vendor commitment rapidly declines, and performance metrics suffer. There are no winners.
The MSP is strategic, relationship-minded, and turns challenge into an opportunity?!
To avoid further disruption the MSP and vendors come together to find solutions - they strategically align to share thought leadership, and successfully deliver on the Customer’s objectives. This partnership approach creates a venue for vendors to have a 'voice at the table' and strengthens the relationship triangle for the longer-term - Customer/Vendors/MSP.
Leverage Vendor Tier Structure: lessen vendor competition and increase commitment
Workforce Analytics/Data Science: forget perception, remove emotion, and focus on the story told by the data
Cloud Recruitment Technology: embrace our future!
MSP Customer Portfolio Review : sharing best practice across all MSP customers. Let’s not reinvent the wheel
VMS Technology Optimization: is functionality fully utilized? Not in most programs!
Vendor Conferences: vendors often know best where to find improvement opportunities
Expand Geography: where else can the MSP deliver value to offset the Customer downturn?
Expand Scope: what other solutions or skills can the MSP provide not already included in the program scope to offset the Customer downturn – i.e., Statement of Work - SOW, Recruitment Process Outsourcing (RPO), IT Project Management Office (PMO), or?
Vendor Cost/Price Analysis: clear understanding of vendor cost and price enable meaningful negotiations.
Vendor Optimization - removing poor performing vendors lessens competition.
Post Image copyright: Lorie Shaull / CC BY-SA