MSP (managed service provider)

A managed service provider (MSP) runs a large employer's contingent workforce program on its behalf. It typically chooses and manages a roster of staffing suppliers, sets rate cards, tracks performance such as fill rate and time to fill, and handles consolidated billing and compliance. MSPs are common at big retailers, logistics companies and venues with many sites. They usually work through a vendor management system (VMS). For a staffing agency, being an approved supplier in an MSP program means following its rules for orders and invoicing.