MSP Definitions
In our experience, companies use language associated with Managed Services in varying ways. In an attempt to avoid further confusion and provide a commonly accepted workforce management definition, Allegis Group Services collaborated with the VMS/MSP Standards Board to develop the following industry standard workforce management definition, as well as standard definitions for other associated language.
Contingent Workforce Management
The management of the requisition, sourcing, evaluation, engagement and payment processes (or lifecycle) for a contingent workforce population; but not necessarily the recruitment of those specific resources. This may also include quality and performance management of the workforce supplier community (enrollment, KPIs, compliance, contract management, etc.).
Contingent Worker
Resources who accept assignments to be performed on a contingent or contractual basis. Contingent workers may also be defined as temporary workers (“temps”), contractors, and/or consultants.
Contingent Workforce Services
The use and/or engagement of resources on a contingent or contractual basis by a client. Contingent workers may also be defined as temporary workers (“temps”), contractors, and/or consultants.
Typically these services are engaged on a time and materials basis (i.e. - hourly rate, daily rate, etc.).
Direct Access
A self-managed VMS program or “in-sourced” model.
MSP
Managed Services Provider (also referred to as Managed Solutions Provider or Managed Systems Provider). A provider of managed contingent services delivered as directed by and within guidelines established by its client.
Staffing Services
The recruitment and employment of resources that are deployed for clients on a contingent basis (including salaried, hourly or subcontracted) by an external agency. Typically these services are engaged on a time and materials basis (i.e., hourly rate, daily rate, etc.).
Third Party Administrator
Synonymous with MSP, but typically not held to the same standards as a full-fledged MSP.
Vendor Neutral
Absence of any bias toward participating vendors on the part of the MSP, other than as directed by the client. Includes the operation and management of a program in a manner that allows verification of the non-preferential treatment of a vendor population through auditing.
VMS
Vendor Management System. A VMS is a system (typically employing software technology) that automates the requisition, solicitation, evaluation, engagement and management of and payment for contingent workforce services.
VOP
Vendor on Premise. A provider of contingent workforce staffing services that is placed in a position of primary or master service vendor through which all such services (whether through the VOP or other vendors) are provided. Typically, this entails a "program office" be developed on-site for the client.
For more definitions, you can click here to view the Lexicon of Contingent Workforce-Related Terms.
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