6 Key Considerations When Changing Your MSP Provider
Discover key considerations for choosing your first MSP provider and ensure you select the right partner to manage your contingent workforce effectively.
Changing your MSP provider is a significant decision that can impact the management of your contingent workforce. Whether you're unhappy with the service, nearing the end of your contract, or simply exploring other options, there are several key factors to consider before making the switch. From understanding your contract and technology needs to planning for a smooth implementation, this guide covers the crucial aspects to ensure you choose the right MSP and make the transition as seamless as possible.
For organisations that rely heavily on a contingent workforce, selecting the right MSP provider is critical. By carefully considering these six key factors, you can minimise disruption, reduce risk, and ensure that your new MSP can support your operational goals.
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Why Change Your MSP Provider?
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Assessing Your Contract and Exit Clauses
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Technology Considerations for Transition
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Impact of Changing Your Account Team
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Building a Strong Business Case for Change
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Successful Implementation and Communication Strategies
Why Change Your MSP Provider?
Before making a change, it’s important to first understand why you’re considering switching your Managed Service Provider (MSP). Are you dissatisfied with the level of service you’re receiving? Do you find that your current MSP doesn’t provide enough flexibility or efficiency in managing your contingent workforce?
Key questions to ask include:
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Are you struggling with a lack of visibility or control over workforce spend?
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Is your current MSP unable to deliver in terms of compliance and risk management?
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Do you feel that your current provider lacks access to specialised talent, leaving you with recruitment challenges?
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Are your workforce strategies reactive, rather than proactive?
For example, in industries like Energy and Utilities, workforce compliance and access to skilled labour are paramount. An MSP can help streamline compliance management while providing access to a broader pool of specialised workers. Similarly, in the Transport & Rail sector, workforce scalability and cost management can be a major challenge, making an MSP a valuable solution to optimise these areas.
Having clarity on these points will not only help you articulate what you need but also ensure that the MSP you choose is better equipped to meet your goals. If you’re unsure, it might be worth speaking to a few MSP providers to understand how their services differ and which one can meet your unique needs.
Assessing Your Contract and Exit Clauses
Once you’ve established why you want to make the change, it’s time to turn your attention to your current MSP contract. Thoroughly review the terms of the agreement, specifically focusing on exit clauses. A strong contract will usually have an exit management section that outlines the steps for transitioning to a new provider.
In particular, it’s crucial to understand:
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The notice period required for termination
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The responsibilities of the current provider during the transition
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Whether there are any penalties or fees for early termination
The exit process can be complicated, especially if your MSP uses proprietary technology or has specific arrangements with suppliers. Make sure you’re clear on what happens with the current workforce, especially any contingent workers who may transition to a new MSP.
Technology Considerations for Transition
Technology is at the heart of efficient contingent workforce management. A well-integrated Vendor Management System (VMS) can help you track performance, manage workers, and ensure compliance with regulations. However, if your current MSP is using a proprietary or heavily customised system, you may not be able to keep it when switching to a new provider. Even with third-party technology, compatibility and transition agreements should be clearly understood before making the change.
Key Technology Considerations:
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Proprietary VMS: If your current MSP uses a proprietary system, confirm whether this technology can be transferred to a new provider or if you’ll need to switch to a new platform.
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Customisation: Some MSPs spend significant resources customising their VMS for your business. Be sure to clarify whether your new provider can retain or adapt the custom features you rely on.
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Integration: Make sure that any new system integrates well with your existing HR, payroll, or finance systems to ensure smooth operations during the transition.
Switching to an MSP with an updated, more advanced system can provide improved visibility, better compliance management, and more efficient recruitment processes. But it's essential to evaluate whether this will cause disruptions or require extra training for your team.
Additionally, ensure the technology supports real-time data and robust reporting tools, especially in sectors like Tech or Energy, where data insights drive strategic decision-making. This added visibility will enhance operational efficiency and ensure better cost control.
Impact of Changing Your Account Team
One aspect often overlooked when switching MSP providers is the impact on your account team. It’s easy to assume that your existing account manager or team will transition with you, but this may not always be the case.
Understanding TUPE (Transfer of Undertakings Protection of Employment):
In some cases, the account team may be eligible for transfer under TUPE regulations. However, this doesn’t guarantee that the account team will remain with your new provider. They may opt to stay with your current MSP, move to another opportunity within their business, or leave the company entirely.
It’s important to discuss this with both your outgoing and incoming MSPs so you have a clear understanding of who will be managing your account post-transition. An experienced team that knows your business can smooth the transition and provide continuity.
Building a Strong Business Case for Change
Switching MSP providers is a significant move, so it’s crucial to build a strong business case before taking the plunge. Engaging all key stakeholders in the process - from procurement and HR to finance and operations - is essential to ensuring that everyone is on board.
When building your case, consider:
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Stakeholder feedback: Gather insights from teams who interact with the MSP regularly to understand what’s working well and what isn’t.
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Clear goals: Set clear objectives for what you want from a new MSP, such as better compliance, improved cost management, or access to a wider talent pool.
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Cost-benefit analysis: Weigh the costs of switching providers (such as transition expenses, implementation, and potential downtime) against the long-term benefits that a new MSP could provide.
Involving all relevant teams early on ensures that everyone has a say and helps mitigate resistance to change down the line. A collaborative approach leads to a more effective transition and a smoother process overall.
Successful Implementation and Communication Strategies
Successful implementation requires careful planning and coordination across multiple stakeholders. The first step is to define clear roles and responsibilities, ensuring that everyone understands what is expected during the transition.
Key factors to consider:
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Stakeholder involvement: Identify key individuals who will be responsible for managing the transition, such as project managers or team leads from HR, procurement, finance, and IT.
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Clear communication plan: A detailed communication strategy is vital to keeping all stakeholders informed about the progress of the transition. This includes informing your hiring managers, contingent workforce, and internal staff about the changes.
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Regular updates: Set up regular implementation meetings and establish a steering group to oversee the transition process, ensuring that issues are addressed promptly and that everyone is aligned on the timeline.
Business Continuity
At Rullion, we prioritise business continuity during transitions. Through careful planning and project management, we ensure that operations remain smooth with minimal disruption. Any potential risks are addressed proactively, ensuring that your business remains on track throughout the transition process.
Effective communication helps to minimise disruptions and ensures that all parties are prepared for the change. Additionally, by communicating early and often, you’ll reduce the risk of uncertainty and dissatisfaction among your workers.
Conclusion
Changing your MSP provider doesn’t need to be a painful process if approached with careful planning and thoughtful consideration. By taking the time to assess your reasons for making the change, reviewing your contract, evaluating technology needs, and ensuring proper stakeholder engagement, you can ensure a smoother transition that benefits your organisation in the long run.
If you're ready to explore how Rullion’s MSP services can support your business, visit our MSP solution page or book a discovery call with one of our consultants today.
