Outsourcing always attracts a healthy dose of scepticism. Bring up the idea of a Managed Service Provider (MSP), and you’ll usually hear the same worries on repeat: “It’s a conflict of interest.” “It’ll add cost.” “That’s just for big companies, isn’t it?”

The truth is that most of these concerns are based on myths, and when they go unchallenged, businesses miss out on serious cost savings, faster hiring, and greater visibility across their contingent workforce.

Cameron Robinson, Head of Enterprise Solutions here at Solve, sets the record straight. Here are five of the most common misconceptions he hears about MSPs, and why they don’t stack up.

Myth 1: An MSP is a conflict of interest

The worry goes like this: if the MSP is run by a recruitment business, won’t they just funnel roles to themselves instead of using the agencies our hiring managers already know and trust?

It sounds like a reasonable concern on the surface, but that’s not how MSPs work. The whole point of an MSP is to be impartial. Success isn’t measured by how many roles we fill ourselves, but by whether the client gets the right person, at the right price, in the right timeframe.

Cameron explains: “We’re obligated to delivering those outcomes, not to any one agency. Our job is to make sure hiring managers get the best possible candidates, wherever they come from.”

Because the model is built on transparency, every supplier is measured against the same standards and data. This means agencies are competing on a level playing field, with performance and results driving who gets used. Far from introducing bias, an MSP eliminates it, ensuring hiring managers can still access their preferred agencies, while the business gains confidence that every supplier is being treated fairly.

Myth 2: An MSP just means a preferred agency

It’s easy to confuse an MSP with a preferred supplier agreement, but the reality is the opposite.

With an MSP, businesses don’t shrink their sourcing options but expand them. Instead of relying on one agency with a limited network, you tap into multiple channels from specialist recruiters to direct sourcing, custom-built talent pools, and more.

That breadth comes with added benefits. As Cameron explains, “With just one agency, you won’t get the data, compliance, reporting and workforce planning support an MSP brings. It goes beyond just filling jobs too. Those more strategic conversations on whether you need a contract or a permanent hire to fill a gap within your business aren’t going to happen in a one-to-one agency relationship.”

An MSP would elevate the relationship from transactional supply to a more strategic workforce partnership.

Myth 3: An MSP just adds cost

Instead of seeing it as another line item on your budget or a layer of admin that makes workforce management more expensive, it’s quite the opposite. An MSP is designed to take cost out of your business, not add to it.

The value comes in multiple forms:

• Standardising rates prevents inflated contractor costs.

• Clear role definition stops business from over-hiring, e.g. paying senior analyst rates when the actual work only calls for mid-level.

• Process efficiencies save hours of procurement, finance and hiring leader time.

• Smarter workforce planning can even eliminate the need for certain contractor roles altogether.

• Accessing better suppliers and contingent workers by analysing the data and directing work to top performers

As Cameron puts it, “The ROI is huge. Clients are often hundreds of thousands, even millions of dollars better off with an MSP than without one. Even if you choose to think of contingent labour as a simple commodity, the case for MSP still stacks up—if the cost was the same, you’d always rather use a better supplier and onboard a better contractor.”

In today’s market, where cost pressures and talent shortages collide, an MSP isn’t just a nice efficiency. It’s a level of financial control, transparency, and smarter workforce decisions. Without it, businesses are often leaving money on the table without even realising it.

Myth 4: An MSP reduces hiring manager control

There’s this fear that an MSP will clip a manager’s wings and dictate who and how they can hire. But the reality? Managers can keep their agency relationships, and with far less admin.

Instead of juggling calls and inboxes stuffed with CVs, they get neatly presented shortlists, interview slots scheduled, and performance data on which suppliers consistently deliver.

Cameron describes it as “democratising access to the best recruitment agencies across the business.” If one team is seeing great results from one supplier, the MSP makes sure other managers know about it too. All control sits with the client, but hiring managers would be empowered by better insights and less hassle."

Myth 5: MSPs are only for enterprise giants

Many believe that an MSP only makes sense if you’ve got thousands of contractors on the books, but with the way technology and delivery models have evolved, a business with just a few dozen contingent workers can still benefit from the visibility, compliance, and cost savings an MSP can provide.

As Cameron says, “If you’ve got 50 contractors, you can still be benefiting through many of the same mechanisms that someone with 5,000 might.”

The principles of visibility, control, cost savings, and quality apply to any business, no matter the size.

Busting myths, unlocking benefits

The myths around MSPs paint them as costly, restrictive, or unnecessary unless you’re a corporate giant, when the reality is quite the opposite. An MSP gives businesses clarity, control, and confidence in how contingent workers are engaged, all while unlocking significant savings and strategic insight.

Ultimately, the focus of an MSP is on delivering measurable results: faster hiring, lower costs, less risk, and better workforce planning.

Whether you have a workforce of 50 or 5,000 contractors, are you curious to find out how much you’re spending? Try our ROI calculator and discover how much you could be saving with an MSP.

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