Managed Service Provider (MSP) Annual Report 2019 – Navigating Through Uncharted Territories: Is the Industry Compass-Ready?

14 Dec 2018
by Arkadev Basak, Vishal Gupta, Krishna Charan

The global Managed Service Provider (MSP) market is growing steadily on the back of rising demand for contingent workforce across geographies and industries. It is expected to witness a growth rate of 10-12% in 2018, backed by ever-increasing demand for temporary workers, rise in adoption of services procurement, and the emergence of the gig economy, resulting in rapidly-increasing numbers of freelancers/ICs. MSP markets across regions demonstrated a strong growth, particularly in the emerging markets of Europe, Middle East & Africa (EMEA) and Asia Pacific.

In this research, we analyze the MSP market across various dimensions:

  • MSP market size and adoption
  • Key MSP market themes
  • Buyer adoption and solution trends


  • A minimum of four MSP processes are included
  • A minimum contract term of two years
  • Scope of hires includes temporary/contingent hires, SOW consultants, and independent contractors
  • All geographies, industries, and job families

The following service providers have been analysed as a part of this report: AgileOne, Allegis Global Solutions, AMN Healthcare, Brainnet, Broadleaf Results, Capita Resourcing, Cross Country Healthcare, Fircroft, Geometric Results, Inc., Guidant Global, Hays, HCMWorks, KellyOCG, ManpowerGroup Solutions TAPFIN, Pontoon, PRO Unlimited, Randstad Sourceright, Volt Consulting Group, Yoh, and ZeroChaos.


This research provides comprehensive coverage of the 2017-2018 MSP market and analyzes it across various dimensions such as market overview, evolving market situation, and buyer adoption trends. Some of the key findings are:

  • The MSP market is growing steadily on the back of increasing demand for contingent workforce globally. The total annual contingent workforce spend managed by the MSP service providers stood at US$127-132 billion in 2017, with ~11% YOY growth
  • While the traditional temporary labor still constitutes a major part of the MSP spend, services procurement / Statement of Work (SOW) spend managed by MSPs is slowly capturing an incremental share of the pie, owing to its rapid growth across regions. This is expected to result in a clash between the MSPs and Procurement Outsourcing (PO) providers, as the latter put up a defense to maintain their strong hold on the services procurement space
  • In 2017, the market also witnessed an uptick in the number of RFIs for Total Talent Acquisition (TTA). While Europe remains the largest TTA adopter, increased activity in North America and the Asia Pacific region was witnessed
  • Digital technologies in talent acquisition are advancing rapidly, and as contingent workforce across industries and buyer segments is taking different shapes and forms, the role of technology in MSP is becoming all the more crucial
  • The next-generation digital technologies, such as advanced analytics, Natural Language Processing (NLP), Machine Learning (ML), and Robotic Process Automation (RPA), are being increasingly leveraged in MSP engagements. This is also prompting service providers to make dedicated investments to stay relevant in the increasingly competitive market


Managed Service Provider (MSP)


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