For years, MSP programs have been framed around one core function: managing recruitment suppliers.

Panels. Rate cards. SLAs. Vendor performance dashboards.

While they’re important, they’re no longer enough. The organisations pulling ahead are managing their contingent workforce as a strategic asset.

The vendor-first model is showing its limits

Traditional MSP models were designed primarily as a procurement tool to:

• Consolidate supplier panels
• Drive compliance
• Control cost
• Standardise process

And this worked when agency supply was the dominant channel and contingent hiring was considered tactical.

However, today’s contingent workers represent a growing group of enterprise capability. You rely on them to deliver critical projects and shape digital transformation, while holding institutional knowledge and moving fast.

Managing this workforce through the lens of “supplier control” is increasingly misaligned with how work actually gets done.

As Cameron Robinson, Solve’s Head of Enterprise Solutions, puts it:

“If your MSP is primarily focused on managing suppliers, you’re missing the point. The real asset isn’t the vendor panel but the workforce itself. When contractors are treated as an extension of your workforce strategy rather than transactions, the outcomes are fundamentally stronger.”

And that’s the shift.

Changing the conversation to workforce-first

A workforce-first model asks different questions. Instead of “How do we manage supplier performance?”, it asks:

• How do we optimise access to capability?
• How do we reduce reliance on high-cost channels?
• How do we build talent communities we can re-engage?
• How do we improve the contractor experience so top performers return?

Because recruitment agencies are only just one access point to talent.

“Governance should enable access to capability, not restrict it to a single channel,” says Cameron. “If your MSP model revolves primarily around agency panels, you’re leaving both value and resilience at the table.”

“Sticking to the familiarity of recruitment agencies shouldn’t be mistaken as a safe and low-risk option. In fact, having multiple avenues to the critical skills you need is a huge business risk.”

Modern contingent programs increasingly draw from:

• Redeployments
• Referrals
• Direct sourcing
• Alumni networks
• Returning retirees
• Known high-performing contractors

An MSP that focuses solely on agency management is missing opportunities at the same time as exposing risk.

Why this matters to TA, Procurement, HR and strategy leaders

While a vendor-first model tends to optimise for control, a workforce-first mindset optimises for outcomes, and the differences are structural.

As Cameron explains, “When your contingent workforce is managed in its own silo rather than integrated into broader workforce strategy, you create friction between Procurement, TA and HR. Integration isn’t just neater but commercially smarter.”

For Procurement, this means sustainable cost reduction instead of short-term margin squeezing that will eventually erode service quality.

For Talent Acquisition, it means building a contractor value proposition that strengthens your employer brand rather than fragmenting it. The clue is in the name too: it also means acquisition of great talent.

For HR and workforce strategy leaders, it means integrating your contingent labour into broader workforce planning instead of managing it separately like a commodity rather than a strategic lever.

The commercial reality

When an organisation relies heavily on external agencies as the primary channel, cost pressure can build quickly.

Year-on-year savings become harder to achieve, service quality deteriorates, speed slows, supplier relationships become strained, and hiring managers disengage.

As Cameron puts it:

“If your savings model depends on squeezing supplier margins year after year, it’s only a matter of time before something gives. Sustainable programs reduce dependency instead of just renegotiating it.”

A workforce-first model gradually shifts reliance towards:

• Lower-cost, owned talent pools
• Direct sourcing under the client brand
• Redeployment of known performers
• Repeat engagement of proven contractors

And the result? Improved access, stabilised cost, a rise in quality, and business continuity that isn’t disrupted by aggressive panel resets.

From administration to strategy

In hand with this vendor-to-workforce shift in focus, is the increasing expectation for MSPs to move beyond administrative execution and become strategic enablers that require:

• Visibility across all sourcing channels
• Alignment with talent acquisition
• Clear workforce ownership models
• Strong contractor experience frameworks

It’s no longer enough to ensure compliance and process efficiency. That’s already been table stakes for years.

“The MSP of the future won’t be measured by how efficiently it processes transactions,” says Cameron. “It will be measured by how effectively it shapes workforce capability and supports strategic workforceplanning.”

Enterprise leaders want insight, resilience, and capability planning, and that only happens when the contingent workforce is treated as a workforce and not just as supplier throughput.