The global Managed Service Provider (MSP) market is growing steadily on the back of rising demand for contingent workforce across geographies and industries. It experienced a growth rate of 13% in 2018, particularly in the emerging market of Europe, Middle East, & Africa (EMEA), backed by an ever-increasing demand for temporary workers, increasing adoption of services procurement, total talent acquisition, direct sourcing, and emergence of the gig economy.

In this research, we categorize MSP market growth across three dimensions:

• Acceleration of the MSP market
• Widening of the MSP market
• Deepening of the MSP market

Scope of analysis

• A minimum of four MSP processes are included
• A minimum contract term of two years
• The 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 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, Workspend, Yoh, and ZeroChaos.

Contents

• 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$144-149 billion in 2018, with ~13% 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
• In 2018, the market continued to witness an uptick in the number of RFIs for Total Talent Acquisition (TTA)
• The market also witnessed faster growth in the mid-market segment compared to other markets and rising requirement for direct sourcing by enterprises due to the scarce talent availability in the market
• 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), Blockchain 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

Membership(s)

Managed Service Provider (MSP)