You’ve heard the terms vendor management systems and managed service provider, but what are the differences between these two things? Both can refer to ways of managing a contingent workforce, but how are they different, and how can they work together? Here is a closer look at VMS and MSP so you can make the most informed decision.
Is There a Difference Between a VMS and MSP?
What is a VMS?
VMS stands for vendor management system. It’s a software platform that facilitates the hiring and managing of contingent workers. It’s typically a cloud-based product that includes order distribution, consolidated billing, risk mitigation, workforce management, and enhanced reporting capabilities. A VMS will collect data, automate many repeatable administrative functions, and streamline the onboarding process.
What is an MSP?
While a VMS is a software that facilitates contingent staffing, a managed service provider is an outsourced organization that handles the end-to-end management of the temporary workforce. They will handle recruitment and daily management processes. Your MSP is made up of employment experts who can do strategic workforce planning, onboarding, and offboarding. An MSP will also have the software expertise to manage these processes.
Combining VMS and MSP
In many ways, a VMS and MSP are two sides of the same coin. The VMS is the software that facilities everything necessary in contingent workforce management. An MSP is made up of experts in their field who can then use the software to run your temporary workforce smoothly and efficiently.
Your Next Steps
Finding out what combination of VMS and MSP will be a good fit is a more straightforward process than you might think. Anserteam works with you to determine a customized solution for your organization.
About Anserteam Workforce Solutions
Anserteam Workforce Solutions represents North America’s very best staffing agencies aligned together to deliver world-class workforce management solutions. We offer end-to-end talent services that can be customized for any size business, utilizing our Managed Services Provider (MSP) model and Vendor Management Solutions (VMS) technology. Is your organization seeking a WBENC-certified diversity partner to provide measurable results and substantial cost savings? Contact us today.