Vendor Neutrality: Not an Unprofitable Illusion

profitability

A recent post in The Staffing Stream about MSPs suggests that the success of the MSP model is intrinsically linked to large staffing agencies, and vendor neutrality is an unprofitable illusion. I see things differently.

While many MSP providers are, in fact, owned by major staffing agencies, many, like Bartech, are not. The expertise, stability, scale and reach that characterize leading MSP providers are not exclusive to a global staffing heritage. Further, the idea that global MSP delivery is only possible through a staffing brand-associated global network of branch locations is simply not true. In fact, an MSP’s true capability to deliver is not tied to an in-country staffing agency model at all. Instead, it is based on the MSP provider’s ability to identify, align and manage quality relationships with the appropriate mix of relevant agencies that comprise the staffing supply chain. This ensures fulfillment without sacrificing either competition or quality.

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Some of the confusion surrounding the concept of vendor neutrality likely originates in the seeming incongruity of a staffing supplier’s ability, desire and willingness to manage the fulfillment process and supplier network objectively on the one hand while maintaining corporate cooperation for market share on the other. A truly vendor-neutral MSP is not faced with this challenging conflict.

As an early adopter of the vendor-neutral MSP model, we successfully deliver vendor-neutral MSP solutions in numerous countries today. We have achieved this without a dependence or requirement for biased participation by a staff augmentation channel partner.

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David Barfield
David Barfield is CEO of The Bartech Group. He can be reached at dbarfield (at) bartechgroup (dot) com.

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1 comments
DTrythall
DTrythall

I do believe that MSP's and VM's are definitely profitable for the providers.  I am also convinced, however, that staffing companies and line departments at our customers are losers as a result of convoluted rules, arbitrary time and resume limitations, incorrect payments, and fees deducted from already low margins.

Duane Trythall 

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