Why modern MSPs must go beyond agency panels

For years, recruitment agencies have been the default access point for contingent talent.
Need a contractor? Go to the panel.
Need more volume? Add another supplier.
Need savings? Renegotiate margins.
It’s familiar. It’s structured. It’s controllable. But it’s no longer enough.
If your contingent workforce strategy relies primarily on agency panels, you’re operating within a narrow slice of the available talent ecosystem and that limitation has consequences.
The risk of single-channel thinking
Agency partners remain important as they provide reach, responsiveness and specialist expertise.
However, when they become the dominant, or the only, sourcing channel, organisational dependency builds. And when demand spikes or markets tighten, everyone competes in the same pool. Resulting in rising rates, slower processes, and inconsistent quality in candidates.
As Cameron Robinson, Head of Enterprise Solutions here at Solve, explains:
“It doesn’t matter whether you’ve got a structured MSP in place or are managing contingent hiring in-house, recruitment agencies are one channel but not the only channel. When organisations design their approach around supplier panels alone, they’re restricting access to capability before the search even begins.”
A modern workforce strategy requires options.
The multi-channel model
A resilient contingent workforce program draws from multiple sourcing pathways, including:
- Direct sourcing under the client brand
- Referrals from managers and existing contractors
- Redeployment of proven performers
- Alumni networks
- Returning retirees
- Curated talent communities
With each channel serving a different purpose.
Some improve cost efficiency, some strengthen engagement, some accelerate speed to hire, and all reduce dependency.
It’s ultimately about right sizing each of their roles within your broader ecosystem.
As Cameron explains:
“The magic happens when you’ve got structured visibility and access to every channel, every time, and can make an informed decision about where and how to source the skills you need. Don’t mistake an ad hoc manager referral or default extension of a high performer’s contract as being the same as a consistent, deliberate and measurable sourcing strategy.”
Why this shift matters
For Procurement, multi-channel sourcing creates commercial flexibility. It reduces overexposure to high-cost external supply and improves negotiating position naturally without damaging relationships.
For Talent Acquisition, it strengthens employer brand. Direct sourcing and talent communities allow organisations to build a contractor value proposition that mirrors permanent hiring strategies.
For HR leaders, it improves workforce resilience. Institutional knowledge is retained through redeployment and high performers are re-engaged instead of re-sourced.
The result is lower cost and stronger capability.
Direct sourcing is more than a tactic
One of the most misunderstood elements of a multi-channel strategy is direct sourcing, which isn’t simply posting roles under a different banner.
Side note: If you are briefing agencies on a role only for them to quickly post a job ad afterwards and rely on applicants, you’ve got grounds to query whether the premium price you’re paying is delivering full value!
The way Cameron puts it:
“Effective direct sourcing isn’t about removing agencies. It’s about building a talent community that chooses to engage with your brand first. When that happens, access improves, loyalty increases, and reliance on high-cost channels naturally declines.”
When done properly, direct sourcing becomes a structural advantage as it:
- Positions the organisation as a destination of choice
- Strengthens contractor loyalty
- Improves repeat engagement
- Enhances speed without sacrificing quality
From panel management to talent ecosystem design
Traditional MSP models are comfortable managing supplier panels.
Modern MSPs design holistic talent ecosystems which means:
- Visibility across channels
- Data-driven insights into sourcing performance
- Strategic alignment with workforce planning
- A contractor experience that encourages return engagement
When those elements align, something shifts. Contingent workforce stops being reactive and becomes intentional.
It’s ultimately about asking, “Are we designing enough pathways to access the capability our business depends on?”
If your contingent workforce strategy relies on a single dominant sourcing channel, it may be time to expand your options.












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