Early in 2009, during the global financial crisis, an MSP client came to us with an edict to reduce expenses by a significant percentage within 30 days. Yes, 30 days.

We later came to believe that they, like many other companies, were experiencing difficulty in securing capital to finance their sales. They often financed the capital goods they sold and this was creating significant pressure. Since their MSP program exceeded $50 million, there was considerable interest in lowering that cost. That's why we took the following steps:

- Accessed VMS technology
- Pulled detailed data on all contractors working in Canada and the United States
- Included information on the type of work, length of assignment, and supervisor with contact information
- Delivered this data in a few hours

While we didn’t make the decision on how to reduce the cost, we provided visibility so our client could make quick, intelligent business decisions. In this case, the client was able to take cost out very quickly and justify in other cases why cost was critical to their business—for instance, a great many of the contractors were doing design work on future products, something the company did not want to eliminate.

At the end of this process, our client reported it actually saved jobs, because it helped them to explain and rationalize the critical nature of the work while still reducing costs where they could.

Spend visibility across the workforce is always important, but it's critically important during times of financial stress. Making clear, justifiable decisions that minimize the impact on the long-term viability of the business is harder once financial pressure is already applied. However, it's at these times that MSP solutions can be the most valuable.

If you're considering an MSP program and want to know where to begin and how to determine if there is a solid business case for doing so, download Part 3 of this series about Fundamentals of Managed Service Provider Programs now here - Business Case and Readiness.