{"id":5109,"date":"2025-10-13T01:17:10","date_gmt":"2025-10-13T01:17:10","guid":{"rendered":"https:\/\/au.hudson.com\/?p=5109"},"modified":"2025-10-13T02:39:37","modified_gmt":"2025-10-13T02:39:37","slug":"myths-and-misconceptions-regarding-msp","status":"publish","type":"post","link":"https:\/\/au.hudson.com\/talent-solutions\/myths-and-misconceptions-regarding-msp\/","title":{"rendered":"Myths and misconceptions regarding MSP\u00a0"},"content":{"rendered":"

In my years working across the talent solutions landscape, I\u2019ve seen firsthand how misconceptions can hold organisations back from adopting models that could genuinely transform their workforce strategy. Managed Service Programs (MSP) applied to an organisation\u2019s contingent workforce (i.e. temps and contractors) are often misunderstood and as a result, underutilised.\u00a0<\/span>\u00a0<\/span><\/p>\n

Let\u2019s clear up some of the most common myths I encounter and explore what these models really offer.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Myth 1: MSP is only for huge contractor volumes\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

Reality:<\/span><\/b> You don\u2019t need thousands or even hundreds of contractors to benefit from an MSP. In fact, I\u2019ve worked with clients who had as few as 30-40 contingent workers who saw significant value.\u00a0<\/span>\u00a0<\/span><\/p>\n

An MSP isn\u2019t just about volume, it\u2019s about structure. It brings visibility, governance, and accountability to how contingent labour is sourced, on-boarded, managed and off-boarded. An MSP will reduce cost, risk (think safety, tax, co-employment), improve supplier performance and engagement and engagement, and enhance the experience for hiring managers and contractors \u2013 who are often future permanent hires.\u00a0<\/span>\u00a0<\/span><\/p>\n

Implications: <\/span><\/b>If you have a contingent workforce, even under 50 contractors, an MSP can help you manage it smarter.\u00a0<\/span>\u00a0<\/span><\/p>\n

Myth 2: You need expensive tech to make it work\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

Reality:<\/span><\/b>
\nTechnology is important, but it doesn\u2019t have to be expensive or even yours.<\/span>\u00a0<\/span><\/p>\n

At Hudson, we bring our own tech stack, which is purpose-built for panel and contractor management, and optimised through years of use. We can also use your existing systems or implement third-party platforms, if preferred. The goal is always the same: to deliver ROI and improve outcomes.<\/span>\u00a0<\/span><\/p>\n

Implication:<\/span><\/b>
\nTech should support your strategy, not drive your costs. The right partner brings the right tools.<\/span>\u00a0<\/span><\/p>\n

Myth 3:\u00a0 An MSP will cost a lot of money in year 1 and savings won\u2019t be realised until years 2 or 3<\/span><\/b><\/h3>\n

In my experience, an MSP will absolutely deliver savings you in year 1. These savings can be significant, in the range of 5-15% of your total contingent spend.\u00a0 These savings are delivered by implementing improved governance around contractor costs and ensuring:\u00a0<\/span>\u00a0<\/span><\/p>\n