In my years working across the talent solutions landscape, I’ve 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’s contingent workforce (i.e. temps and contractors) are often misunderstood and as a result, underutilised.  

Let’s clear up some of the most common myths I encounter and explore what these models really offer.   

Myth 1: MSP is only for huge contractor volumes  

Reality: You don’t need thousands or even hundreds of contractors to benefit from an MSP. In fact, I’ve worked with clients who had as few as 30-40 contingent workers who saw significant value.  

An MSP isn’t just about volume, it’s 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 – who are often future permanent hires.  

Implications: If you have a contingent workforce, even under 50 contractors, an MSP can help you manage it smarter.  

Myth 2: You need expensive tech to make it work  

Reality:
Technology is important, but it doesn’t have to be expensive or even yours. 

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. 

Implication:
Tech should support your strategy, not drive your costs. The right partner brings the right tools. 

Myth 3:  An MSP will cost a lot of money in year 1 and savings won’t be realised until years 2 or 3

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.  These savings are delivered by implementing improved governance around contractor costs and ensuring:  

• Contractor pay rate bands are documented, understood and complied with for all assignments 

• 100% compliance to the panel and removing “off panel” spend 

• Margins are competitive and consistent across the panel  

• Long term contractors over 12 months tenure convert to a payroll only fee 

• Contractor extensions are minimised and receive the necessary approvals  

• Contractor conversions receive the necessary approvals and occur at an optimal time to minimise cost  

Myth 4: Choosing Hudson means Hudson gets all the work  

Reality:
This is a common concern and a misconception. 

In MSP models, panel selection is collaborative. We work with clients to build a supplier panel that reflects their current and future needs, industry, and diversity goals. Governance frameworks ensure fair distribution of roles and performance accountability across the panel. 

Hudson doesn’t “take over” we partner. And we’re committed to transparency, fairness, and results. 

Implication:
A well-governed panel delivers better outcomes and protects client choice. 

Final thought: Strategy starts with clarity 

An MSP isn’t a one-size-fits-all solution. They’re flexible, scalable, and designed to address an organisation’s key pain points. Whether you need to cut costs, improve the supply of contingent talent, or ensure compliance to the panel, an MSP can deliver a range of benefits from year 1. 

Understanding what an MSP model can really offer is the first step toward smarter, more strategic governance of your contingent workforce program. If you’re navigating growth, complexity, or change, it might be time to rethink your approach. 

Let’s Talk Talent 

If you’d like to explore how an MSP could benefit your organisation or simply want to understand what’s possible contact me today. I’d be happy to help you unpack the options and build a solution that fits. 

Kimberley Hubble – Head of Talent Solutions
kimberley.hubble@hudson.com
0416 270 642