Designing your global MSP programme
In today’s globalised business environment you’re confronted with constantly changing economic and labour conditions. These altering conditions increase the need for a global contingent workforce strategy. Especially when struggling with labour shortages in certain industries and countries. Having an MSP programme in place could be very helpful. But how should that global MSP be designed to become successful?
Managing a global contingent workforce can be challenging. Many organisations lack a centralised strategy, central governance and centralised systems. Their contingent workforce data is scattered, which makes it very hard to analyse and almost impossible to define the right global strategy. In contrast, organisations with a central global workforce strategy and process in place, have visibility and transparency at their fingertips. It allows them to make instant decisions when hiring contingent workers and expanding or reducing the scope of work. Organisations often outsource the management of their contingent workforce to a global Managed Service Provider (MSP). Design of the global MSP programme and finding the right MSP partner is fundamental to a successful contingent workforce strategy and its execution.
In-country presence?
One of the first decisions to make is if you need the MSP services, for the countries in scope, to be executed on a local in-country level. That depends on many factors, like for example the number CWs, local legislation, labour market dynamics, internal culture, etc.. In most cases your MSP provider needs local presence and a local legal entity for the execution of their local services. It’s essential to consider this need when selecting the right MSP supplier, since global coverage of the major MSP suppliers differs (see graphic below).
Alternatives?
In many cases your hiring volume per country differs and the global coverage of the selected MSP partner will not mirror your global coverage. So you’ll need to consider an alternative delivery mode. What are your choices?
Nearshore/offshore delivery
If your MSP partner has no in-country delivery team or the volumes don’t justify a local team on the ground, an alternative is to organise the service delivery from a near- or offshore location. All major MSP suppliers have multiple central delivery locations across the world. Important elements to take into consideration are factors like local language support, cultural fit, labour market knowledge, change management during the first year, etcetera.
Local partnerships
Sometimes the volumes and nature of the contingent workforce in specific countries require a local delivery model. When your MSP supplier doesn't have local coverage or intend to set-up a local entity, your MSP supplier could subcontract to a local partner. It is important that this local partner fully acts under the responsibility of your MSP supplier and uses the central VMS system to ensure a global execution of your strategy.
Headcount tracking
The in-country CW volumes regularly do not justify a full MSP service delivery model, including sourcing, supplier management, etc. If your local management is fully capable to source and manage the contingent workforce by themselves, then make sure they use the central VMS software to enable headcount tracking. It will ensure global visibility and the possibility of making strategic decisions, when there are changes in volumes, competences, etc.
Summary
In summary, designing the right delivery model for a global Contingent Workforce Programme faces you with many choices and a great deal of complexity.
These complexities should not be underestimated, but they should also not be feared. With correct consideration, all of them can be addressed constructively. A successful global MSP deployment is absolutely possible. Do you need support designing your regional or global MSP programme? Or would you like a review of your approach? Please feel free to reach out.
Author: Eugène Van Berkel
