July 28, 2023

MSP vs. VMS: Contingent Staffing Solutions


Contingent staffing solutions (CSPs) have been around since the early 2000s. Originally, these solutions were designed to be used as an alternative to traditional permanent staffing methods. More recently, however, they've evolved into a set of tools that not only helps companies manage their contingent workforce but also provides them with access to skilled temporary employees that can help them navigate industry changes and unpredictable business cycles. Over the past few years, there has been an increase in demand for contingent workers—and a corresponding increase in the supply of such workers available on the market today. This reality has led many companies to turn towards VMSs and MSPs as they seek ways of managing their contingent workforce programs more effectively.

What is an MSP in Staffing?

MSPs are companies that specialize in providing contingent staffing solutions to their clients. They provide services to clients that include:

  • Recruitment
  • Payroll and tax administration
  • Benefits administration (401(k), health insurance, paid time off)
  • Onboarding and offboarding services

MSPs also provide compliance support for clients by adhering to all regulations set forth by federal agencies such as the Department of Labor or state labor laws.

Benefits of Managed Service Providers for Contingent Staffing

A managed service provider can help you manage your contingent workforce by providing a wide range of services. For example, MSPs can help you manage your contingent staffing costs and budget, which will improve your bottom line. They also provide solutions for compliance and risk mitigation within the contingent staffing industry.

By choosing an MSP that specializes in contingent staffing, you can rest easy knowing that your workforce is being managed by experts who know the industry well.

MSPs can also help you find the right contingent workers for your company. They employ a team of subject matter experts who specialize in staffing, so they can quickly fill your staffing needs with top-performing talent. Finally, MSPs assist with day-to-day operations, such as payroll processing and compliance management.

All these services will help you save time and money, which can be used to grow your business. If you’re looking for an MSP that specializes in contingent staffing, contact us today.

What is a VMS in Contingent Staffing?

A VMS is a software application that automates the process of managing vendors. A VMS can be used to manage vendors in a variety of industries, from construction to medical staffing. A good example is the 3M Company, which has used an electronic procurement system for over 20 years.

A VMS platform provides organizations with visibility into their spending and allows them to gain control over it through automated workflow processes and analytics capabilities. These systems enable companies to make informed decisions about where they want their money invested--and when they don't need something anymore (like when someone leaves), they can cancel contracts quickly so no more money goes out on that service or product line until further notice from management.

The VMS is an important tool for any organization that purchases goods and services. It can help companies control their budgets and save money by identifying where they are spending too much or too little. A good VMS will also make it easier to manage vendors and streamline the procurement process so that managers have more time to focus on other areas of their jobs

Benefits of VMS Technology for Contingent Workforce Program

VMS technology provides a more efficient way to manage the contingent workforce. This is important for many reasons, but most importantly because it allows you to manage your entire contingent workforce in one place.

With VMS software, you can:

  • Manage all aspects of your contingent staff from one location--including hiring, onboarding, scheduling, and payroll processing
  • View real-time status updates on each worker's time sheets and hours worked so that there are no surprises when it comes time for payroll processing (which saves money)
  • Easily add or remove workers as needed based on business needs rather than having to go through multiple vendors


We hope that this article has helped you understand the difference between VMS and MSP. Vendor Management Systems as well as Managed Service Providers can both help you manage your contingent workforce. The key difference is that VMS are primarily software applications, while MSPs provide a wide range of services. However, there are also some companies like Koncert that offer both VMS and MSP solutions. If you’re in need of a vendor management system or managed service provider, please contact us today.

Amber Crawford

I am honored to be the Executive Vice President of Koncert Technology Sourcing Solutions, a managed service provider offering Information Technology and Healthcare services to Fortune 500 companies. I have worked hard to make Koncert what it is today and I am proud of my accomplishments and achievements as a leader in this industry. My passion for creative problem-solving, coupled with my eye for detail, has enabled me to be successful in this role. Beyond work, I enjoy giving back to the local community through volunteering, attending live music events, and spending quality time with family.

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