For many organizations, the idea of implementing a Managed Service Provider (MSP) program seems like the natural next step: greater visibility, compliance, efficiency, and cost control. But the leap from a decentralized, ad hoc contingent workforce model to a centralized, scalable MSP solution is not small. For those without any existing program, commonly referred to as a Gen 1 MSP, the stakes are even higher.
At Koncert, we have helped countless organizations navigate their first-ever MSP engagement, and the key to success lies in viewing it not as a transactional vendor relationship but as a strategic workforce transformation initiative. Below, we outline the foundational best practices for building a Gen 1 MSP program that is not just functional, but future-ready.
1. Start with Why: Establish Clear Business Objectives and Executive Alignment
Before launching into solution design or selecting a staffing partner, it's critical to ask: What do we want this MSP program to achieve?
For many first-time MSP adopters, common goals include:
- Reducing total contingent labor spend
- Gaining visibility into contingent workforce usage
- Reducing compliance and classification risk
- Standardizing processes and improving the hiring manager experience
- Accessing better talent, faster
Without alignment across procurement, HR, finance, legal, and operational stakeholders, your Gen 1 MSP program risks becoming a patchwork solution instead of a unified workforce strategy. Koncert collaborates with client stakeholders to lead strategic planning sessions, define measurable goals, and ensure every department sees the value behind the MSP initiative.
2. Design with Flexibility, Not Perfection
One of the biggest pitfalls in Gen 1 MSP programs is overengineering the model before it even launches. While striving for a perfect solution may seem ideal, the truth is you need room to learn.
Koncert guides clients through a phased MSP rollout model, often by geography, business unit, or labor category, allowing the organization to test, iterate, and refine. This creates an agile, scalable MSP framework that accelerates adoption and reduces implementation risks.
We also help clients define initial scope parameters (such as included worker types and rate categories), while building in mechanisms for evaluation and long-term program expansion.
3. Bring Suppliers Into the Journey Early
In decentralized staffing models, supplier relationships often vary by department or location, and vendors may fear losing access to hiring managers during a centralization effort. That is why a transparent and inclusive supplier management strategy is essential.
We recommend:
- Hosting supplier town halls to explain the “why” behind the transition
- Sharing SLAs, scorecard criteria, and performance expectations
- Rewarding strong historical performance with inclusion in the initial supplier pool
- Creating clear feedback loops and communication channels
Koncert leads the supplier transition planning process, helping clients preserve institutional knowledge while improving vendor performance. The result is a supplier ecosystem that delivers high-quality talent, not just fast placements.
4. Prioritize Change Management as a Program Pillar
Many Gen 1 MSP programs underestimate the extent of organizational change involved. Hiring managers may feel like they are losing control. HR may fear workflow disruptions. Legal teams might be concerned about misclassification risks. That is why change management is a non-negotiable element of program success.
At Koncert, we support clients with:
- Executive sponsorship and leadership engagement strategies
- Department-level change champions and liaisons
- Tailored communication and training plans
- Process documentation and ongoing help desk support
This structured, people-first approach fosters stakeholder trust, minimizes resistance, and builds early program momentum.
5. Enable Visibility and Insight from the Start
One of the biggest surprises for first-time MSP adopters is realizing how little visibility they had into their contingent workforce. Who is working, where, for how long, and at what cost?
That is why we implement a technology foundation from the beginning, typically a Vendor Management System (VMS) with customizable dashboards and analytics aligned to business goals.
With Koncert, you can:
- Benchmark contingent labor rates across locations and job categories
- Monitor supplier performance and requisition cycle times
- Identify off-program spend and misclassified workers
- Forecast workforce demand and optimize talent pipelines
It is not just about data collection. It is about turning workforce analytics into actionable insights.
6. Think Beyond Implementation: Build for Sustainability
A Gen 1 MSP program is only truly successful if it evolves beyond its launch phase. Sustainability must be built into the foundation from the start. That is why Koncert equips every client with:
- Clear governance structures such as steering committees and quarterly business reviews
- Standard operating procedures that grow with your workforce
- Feedback loops from hiring managers and staffing vendors
- An expansion roadmap that includes SOW management, independent contractors, and niche technical talent
The most effective Gen 1 MSPs do not just resolve today’s hiring inefficiencies. They future-proof your entire contingent workforce strategy.
Why Koncert?
We understand the nuances, challenges, and aspirations of first-time MSP adopters. We do not offer templated or one-size-fits-all solutions. At Koncert, we act as strategic advisors, workforce transformation leaders, and long-term MSP partners, guiding you through every step, from design and rollout to performance optimization.
Our approach to Gen 1 MSP implementation is built on transparency, flexibility, and deep partnership. We believe contingent workforce programs can become a true competitive advantage.
If you are considering launching your first MSP program, do not go it alone. Contact Koncert today to schedule a discovery session and learn how we build Gen 1 MSP programs that deliver results today and provide agility for the future.