Where to Find Cost Savings in Managed Service Provider Programmes

Maximising your Managed Service Provider (MSP) programme for cost savings isn’t about cutting corners. It’s about using the right MSP solution, picking effective MSP models, and executing a smart workforce strategy. Whether you’re optimising an existing MSP or exploring a master vendor approach, there are plenty of opportunities to unlock efficiencies, reduce risk, and generate long-term value.

Competitive Fees

Keeping an eye on fee structures pays off. Regular reviews make sure your vendor models reflect current market conditions. Negotiating tenure discounts can lower client costs over time, delivering sustainable savings across your contingent workforce.

Volume Rebates

Don’t overlook volume rebates - they’re a win-win. Once spend thresholds are reached, clients save money while suppliers are motivated to perform at their best. This approach strengthens relationships and maximises returns within your MSP solution.

Maximising Direct Delivery

Focusing on direct delivery streamlines your supply chain and reduces reliance on external suppliers. By managing more placements directly, your MSP programme becomes leaner and more cost-effective. The key is knowing when to use third-party specialists and when direct management adds more value.

Supplier Negotiations

Negotiating with suppliers shouldn’t be a one-off task. Ongoing engagement keeps contracts competitive, suppliers committed, and service levels high. While the biggest savings often happen at the start, continuous negotiation ensures your MSP models stay efficient.

Rationalising Worker Pay Rates

Clear rate cards standardise pay rates, prevent overspending, and maintain fairness across your contingent workforce. Swapping costly specialists for skilled juniors when appropriate can reduce spend without affecting output. Keeping a close eye on day rates and overtime avoids unnecessary cost spikes.

Continuous Improvement and Efficiencies

Efficiency drives savings too. Improving time-to-hire, boosting retention, and applying tools and technology to streamline recruitment all help lower costs. Strong governance with KPIs and SLAs, proactive workforce planning, and managing alumni talent create an MSP programme that keeps delivering.

Expert Insight

"Deploying a proactive workforce plan isn’t just a tick-box exercise. It’s about foresight; making sure the right skills are ready when you need them. That’s where the real gains appear," says James Parnell, Talent Solutions Director.

Unlock the Benefits of MSP Today

A well-designed MSP solution goes beyond supplier management. It reduces risk, improves control, and supports smarter contingent workforce strategies. Explore how our tailored managed service provider programmes can deliver measurable cost savings and long-term success.