When managing contingent workforces, one company's department may need contractors while another is working with multiple staffing agencies. Simultaneously, procurement wants better rate control, HR is worried about compliance, and finance is trying to figure out why invoices are coming from everywhere. Meanwhile, managers just want qualified workers who can start quickly. That is where two common solutions enter the conversation: a Managed Service Provider (MSP) and a Vendor Management System (VMS).
The difference between a Managed Service Provider and a Vendor Management System is a Managed Service Provider (MSP) is the partner that helps run and manage a contingent workforce program, while a Vendor Management System (VMS) is the software used to organize and track that program. A company may use a VMS on its own if it has the internal team to manage everything, but an MSP is often a better fit when the company needs hands-on support, vendor oversight, and day-to-day program management.
What is a Vendor Management System
What is a Managed Service Provider
Partner With TCWGlobal for MSP and VMS Services
A Vendor Management System is a software platform used to manage contingent workforce activity and help companies centralize the operational pieces of working with staffing suppliers, contractors, temporary workers, and other non-employee labor. A VMS can help with things like creating and distributing job requisitions, tracking candidates submitted by staffing suppliers, comparing bill rates, tracking time and expenses, consolidating invoicing, reporting on spend, headcount, and vendor performance, creating visibility across departments and locations.
A Managed Service Provider is a third-party partner that manages all or part of a company’s contingent workforce program by overseeing the people, processes, suppliers, compliance workflows, reporting, and day-to-day administration involved in managing temporary workers, contractors, freelancers, statement-of-work labor, or other non-employee talent. They handle responsibilities such as managing staffing suppliers, distributing job orders, standardizing hiring workflows, improving compliance processes, managing, onboarding and offboarding, and helping control contingent workforce spend.
TCWGlobal helps companies manage contingent workforce programs with the right mix of people, process, and technology. With MSP services, vendor management support, payrolling, compliance-focused workflows, onboarding support, payment administration, workforce technology, and dedicated service teams, TCWGlobal helps businesses source, manage, pay, and support contingent workers while giving hiring managers and workers a smoother experience.
Contact TCWGlobal to learn how our MSP services can help you centralize contingent workforce management, improve vendor oversight, streamline payroll administration, support compliance-focused workflows, and manage your extended workforce through one hands-on partner.