Insights and resources for employers and professionals.

What is a Managed Service Provider?

A managed service provider (MSP) is an outsourced third-party company that provides an end-to-end solution for a specific business process. An MSP will manage and assume responsibility for a defined set of operational tasks with the goal of improving productivity and efficiency. When using an MSP, your organization retains overall managerial control but outsources tasks that do not lie within your core business expertise.

What is an MSP in Staffing?

Is your organization losing money juggling numerous contingent staffing vendors? Are you looking for a workforce management solution that will provide greater risk mitigation and analytics? If so, you might consider partnering with a managed service provider. In terms of staffing, an MSP is a contingent or statement of work management solution that supports an organization’s hiring and vendor management by providing process improvements, industry expertise, and workforce analytics.

The MSP provider will assume all or part of an organization’s sourcing and HR functions, managing the contingent staffing process with all vendors from requisition through invoicing and reporting. Working with an MSP can provide many benefits, including:

  • Lower talent costs due to consolidation
  • Improved compliance
  • Swift access to high-quality talent
  • Greater process efficiency
  • Better visibility of spend
How Does a Managed Service Provider Work?

An MSP is typically part of an organization’s contingent workforce program. It may handle all areas of staffing, including temporary employees, freelance workers, independent contractors, and more, depending on what is needed. Some workforce management solutions are overseen by a project management office (PMO) that works with the client’s HR and procurement team. The MSP is responsible for the daily management of the program, including supplying contingent and SOW talent, reviewing supplier and vendor contracts, providing reporting and analytics, and improving the efficiency of the workforce solution.

As a top MSP provider in Minnesota and the Upper Midwest, DAHL offers you full visibility and control of your contingent workforce while building a customized program that fits your culture and aligns with your goals. All requests, vendors, workers, timesheets, and employment spend are captured, managed, and tracked through a single process and technology platform. Once all data is captured, we can begin optimizing for cost, efficiency, and compliance. DAHL’s managed staffing program in Minnesota takes the contingent staffing burden from your organization, while leaving you in the driver’s seat.

Advantages of an MSP Staffing Provider

Companies can benefit significantly from the services of an MSP, including:

  • Access to analytics and reporting tools. Not having easy access to real-time reporting makes it difficult to make hiring decisions. An MSP can help organizations gain access to their suppliers’ performance, spending, cost control, and more to improve processes.
  • Consolidated invoicing. Receiving multiple or inaccurate invoices can make it difficult to control spending. Your MSP will issue a consolidated invoice, saving the AP department time—and saving your company money.
  • Continued supplier optimization. Your MSP works with multiple vendors and can assure competitive rates and services.
  • Increased visibility. An MSP can help organizations gain clarity into spend, hours, and headcount to generate significant savings and better decision-making.
Cost Savings

Many organizations hire an MSP to reduce costs. Dealing with contingent staffing internally can often cause unexpected expenditures that aren’t noticed until it is too late. It’s difficult for organizations to control factors like time, compliance, number of workers, and supply chain management when they aren’t used to doing so. For companies on a tight budget, last-minute staffing can cause significant problems.

Businesses can find it advantageous to outsource staffing processes that they don’t have the time or resources to perform in-house. By partnering with an MSP, they save money by shifting the task to a well-equipped partner and create a predictable monthly cost for their budget.

Managed service providers assume responsibility for managing your current vendors. They pay close attention to the labor market and can negotiate the best rate with new and existing vendors, bringing in the right talent at the best price.

Workforce Management Solutions

For organizations that are expanding rapidly, an MSP can provide the resources they need to grow, faster and more cost-effectively than they could do on their own. Instead of responding to staffing needs reactively, an MSP can help your organization respond proactively. You’ll always have eyes on your changing needs—and reporting to optimize your spend.

Looking for a workforce management solution for your organization? DAHL’s managed staffing program in Minnesota has a centralized headquarters but the flexibility to serve organizations throughout the Upper Midwest and nationwide. Let us help you streamline your processes, expand supplier performance, and access qualified talent.

Other ways a managed service provider can help your organization include:

Risk Mitigation

When an organization increases its use of contingent labor, it also increases the risks that come with employing non-permanent employees. Organizations that are expanding their contingent workforce program into other states need to understand the local law and regulations in their new area. These liabilities and compliance issues include credentialing, worker classification, unemployment, workers’ compensation claims, and more. Failure to stay on top of these issues can result in penalties and other unpleasant consequences.

Partnering with an MSP can mitigate these risks by employing external experts who can help your organization remain compliant with all local, regional, and global regulations.


Managed service providers are experts at responding and adapting to your workforce needs. They have a vast network of talent across many industries and experience customizing a solution for your needs. Your MSP will have dedicated support teams to leverage their insight and expertise to help your reach your contingent staffing goals. As your staffing needs change, your MSP will adapt the program to maximize your ROI.

How Do I Know if an MSP is right for my Organization?

If your organization hires a high volume of contingent workers and is comfortable outsourcing your contingent workforce and SOW needs, then you might want to consider using an MSP.

An MSP can provide many benefits, such as:

  • Faster access to qualified talent
  • Improved cost control through your staffing vendors
  • Detailed analytics and reporting to optimize workforce spend
  • Risk mitigation
  • Streamlined hiring processes
Partner with the Top Managed Service Provider in Minnesota Today

Our clients know they can depend on us for the qualified, hardworking people they need. As one of the leading managed service providers in Minnesota and the Upper Midwest, we take the time to learn and understand your organization’s needs and culture so that we can bring you exceptional talent. Our commitment to diverse hiring practices means you have access to the broadest talent pool available.

When you need to hire at scale and want a customized workforce management solution that reduces costs, risks, and time to hire, count on DAHL!