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    Should IT companies use MSPs?


    A new study revealed that managed staffing is positively impacted by COVID-19. In a market where most businesses have lost clients and needed to furlough staff, MSPs have been able to retain most of their staff. According to RedTech, a managed staffing provider, most IT businesses have had a very good year so far, which in turn led to IT companies hiring additional staff through MSPs.

    Hiring new employees is stressful, recruiting new staff and setting up new teams is full of challenges and legal risks. Engaging great candidates, hiring as fast as possible, building a strong brand as an employer are just some of the things to take into consideration. 

    Treating freelancers as any regular employee may be risky for an organization. These risks could seriously harm HR operations and impact performance, finances and shareholder value. That is why many IT businesses look for out-of-the-box staffing solutions. By using the services of an MSP, experienced professionals provide reliable services for talent selection, management, retention, and higher productivity. 

    How do MSPs fit in?
    Hiring in-house professionals used to be the norm. Up until recently, businesses only outsourced non-critical and low-tech positions. With the development of technology, remote operations, and the growing market for skilled contingent workers, it is now common to outsource other types of projects. Outsourcing entire projects and teams allows businesses to focus on their core business and avoid legal risks.

    Most MSPs have access to a talent pool and are able to start any project quickly. Other businesses may need additional time to recruit, interview and set-up the team. MSPs can help businesses execute hiring tasks while following HR compliance regulations. 

    Benefits of MSPs for IT companies
    • Streamlined HR process

    MSP firms strive to offer efficient workforce solutions, they have experience and knowledge about the HR process. They know how to set-up a team in no time and manage the entire team. This means that your in-house HR staff can focus on other tasks while the MSP takes care of the rest.
    • Lower recruitment costs

    Cost-reduction is a major benefit. Contingent workers remain on the MSP’s payroll. This greatly lowers your direct costs, you won't be responsible for compensation or unemployment. If a contingent worker takes a holiday or sick leave, you won't have the obligation to pay them or arrange for other contingent workers to take over. Other than that, your onboarding and training costs are reduced while candidate screening costs are lowered too if this is part of your MSP agreement.
    • One single contract 

    Instead of dealing with a large number of staffing companies, MSP agencies can help you get all services through a single contact. You won't have to deal with paying and hiring every single contingent worker individually. There is no need to manage multiple invoices and contracts. Everything can be handled through a single partner, this ensures a flexible and smooth flow of operations. 
    • Continuous monitoring

    If you're hiring freelance staff individually, your management will often be limited by their own working hours. This decreases productivity. Responding quickly to questions and managing a team requires 24/7 attention. Holidays are often different over various time zones, you don't want your outsourced team to stop working while they don't have a holiday in their country. Companies can't monitor freelance staff 24/7, an MSP has the resources and know-how to guarantee projects won't be interrupted.
    • Faster recruitment increases productivity

    Productivity is harmed by having vacancies. Recruitment can be time-consuming. It can take weeks or even months to find the right fit. After you have hired the right person, the induction period takes time and resources. With an MSP, recruitment time and induction time are reduced to day, this enables you to return to full productivity quickly. 

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