The Difference Between a Managed Service Provider and Recruitment Process Outsourcing

Partnering with a third-party workforce solutions firm can help your company acquire specialized talent, scale on demand, and implement innovative technologies. All of these outcomes enable you to refocus on core business priorities while making your workforce processes more efficient.

The major benefit of partnering with an expert provider, however, is the significant cost savings your company can receive from outsourcing its recruitment processes.?In addition, outsourcing or augmenting your talent acquisition initiatives can help your company find better talent in less time.

Recruitment process outsourcing (RPO) and managed service providers (MSP) both serve to improve the efficiency of your company’s hiring process and enable you to acquire the top talent within your industry. But how are these two solutions unique, and how do you know which one is right for your company?

Recruitment Process Outsourcing (RPO)

Recruitment process outsourcing is the act of transferring all or part of your company’s recruitment processes to a third-party company.?

By acting as an extension of your company’s human resources or talent acquisition team, outsourcing recruitment will deliver full-time staff, technology, and hiring processes to fulfill your company’s recruitment initiatives. This can include candidate sourcing, screening, and onboarding.

RPO can easily be scaled up or down depending on your company’s hiring needs. For example, you may need to do a quick ramp-up for a seasonal hiring need, and then ramp back down once the busy season ends.

If your company needs to access a wider pool of candidates, free up time for your internal talent acquisition team, or consult on new strategies with recruiting experts, outsourcing your recruitment process is the solution.

Managed Service Provider (MSP)

A managed service provider (MSP) is an external company that operates as an extension of your company to help drive growth and success of your business. A managed service provider manages various processes and functions to improve operational efficiencies and yield cost savings. In recent years, MSPs have become popular for their contingent workforce expertise.

A managed service provider offers similar end-to-end recruitment offerings as RPO but focuses on temporary workers. This includes freelancers, contractors, consultants, and all other non-permanent staff. If your hiring needs are limited to those types of engagements, an MSP is an effective solution for your company.

What Are the Differences Between RPO & MSP?

The Type of Workforce

The most apparent difference between RPO and MSP programs is the type of worker they supply to your company.

MSPs focus on providing contingent talent to fulfill your organization's temporary and long-term needs, while RPO focuses on long-term and full-time employees.?

How Workers Are Sourced

Using a vendor management system (VMS), an MSP works with an established list of suppliers to identify top talent that will fill skills shortages within your business.

RPO, however, sources candidates through methods including social media, candidate databases, and referrals.?

Technology?

While RPO will use an applicant tracking system, an MSP will use a vendor management system (VMS).

You may need one or several of these solutions based on your organization's needs. Contact one of our workforce solutions experts today to learn more!