Managed service provider (MSP)

A managed service provider runs a company's contingent workforce program on its behalf, coordinating staffing suppliers, often on top of a VMS. See what an MSP does and how Worksome fits.

Written by

Brianna Kerr

August 14, 2026

Large contingent programs are often too complex to run in-house, so a managed service provider runs them. The MSP coordinates the agencies and the technology, usually on top of a VMS.

Key facts

A managed service provider runs an organization's contingent workforce program on its behalf, coordinating staffing suppliers.
An MSP often operates on top of a VMS.
Worksome complements an MSP-run program by handling the direct and independent workforce those programs often leave uncovered.

Contents

What is a managed service provider?
What an MSP does
MSP vs VMS
How an external workforce platform complements an MSP
Frequently asked questions
Working alongside your MSP

What is a managed service provider?

A managed service provider (MSP) is a company that runs an organization's contingent workforce program on its behalf, coordinating staffing suppliers, often on top of a VMS. The MSP manages the day-to-day of the program so the client does not have to.

What an MSP does

Supplier management. Coordinates staffing agencies and vendors.
Requisitions. Distributes and manages open roles across suppliers.
Reporting. Provides program visibility and KPIs.
Governance. Enforces process and compliance across the supplier base.

MSP vs VMS

An MSP is a service; a VMS is software. The MSP is the team running the program; the VMS is the tool they run it on. Both are built around agency suppliers.

Key takeaway: MSPs and VMS platforms manage suppliers well. The direct and independent workforce still tends to fall outside the program.

How an external workforce platform complements an MSP

Best practice: Let the MSP keep running the supplier program, and add a layer for the direct and independent talent it does not reach. Worksome handles the direct and IC workforce alongside an MSP-run program, with the classification and pay coverage those programs often lack. It works inside that setup, not against it.

Frequently asked questions about managed service providers

What is the difference between an MSP and a VMS? An MSP is the service that runs the program. A VMS is the software it runs on. MSPs often operate a VMS.

Does Worksome replace an MSP? No. Worksome complements an MSP-run program by managing the direct and independent workforce alongside it.

Who uses an MSP? Large enterprises with high-volume, agency-based contingent programs.

Working alongside your MSP

An MSP runs your supplier program; Worksome runs the direct and independent talent it does not reach. Together they cover the whole workforce.