The global MSP market is witnessing fundamental changes that are altering the dynamics of the market. MSP buyers, having obtained the relatively low hanging fruits, are now looking for additional strategic gains from their MSP programs. This, in a way, has also provided opportunity for service providers to differentiate themselves by bringing in innovative solutions and best practices from allied industries in the broader Business Process Outsourcing (BPO) area such as RPO, HRO, and PO.
In this research, we analyze the MSP market across various dimensions:
Market overview
Shifting solution dynamics
Buyer adoption and solution characteristics
The scope and methodology of this report includes:
MSP deals with a minimum of four core processes
Deals with a minimum contract term of two years
Scope of hires includes temporary/contingent hires, SoW consultants, and independent contractors
All geographies and industries
CONTENT
This research provides comprehensive coverage of the MSP market and analyzes it across various dimensions such as market overview, key business drivers, and shifting market dynamics across buyer adoption trends, solution & transaction trends, and service provider landscape.
The managed spend in the MSP market grew by 11-16% in 2014 to reach US$85-90 billion. The current market size, in terms of Net Fee Income (NFI), is ~US$1.5 billion
As the MSP market is flourishing into a big-dollar space, three categories of service providers have clearly emerged: staffing-legacy MSP, pure-play MSP, and new providers from a variety of backgrounds
Service providers are increasingly focusing on the emerging Statement of Work(SoW) and independent contractors space beyond the traditional temporary workforce arena
New and innovative sourcing solutions are being devised, which include greater leverage of buyer networks and direct sourcing, in order to optimize cost and improve talent quality
There has been a significant increase in multi-country deals, including global multi-continent deals, indicating increased buyer confidence and growing maturity of the MSP market
Mid-market buyers are neck-to-neck with large-market buyers when it comes to MSP adoption
Nearly 75% of all the MSP deals are less than US$50 million in managed spend. Nonetheless, there is a visible increase in large- / mega-sized deals, and together they account for more than 25% of the global MSP market
Vendor management and transaction-intensive processes are the most frequently included processes in MSP contracts
Note: this report is from 2012. See our most recent R2R research report.
The Finance & Accounting (F&A) function comprises three end-to-end processes – Procure-to-Pay (P2P), Order-to-Cash (O2C), and Record-to-Report (R2R). This report focuses on…