Managed service provider (MSP) programs are designed to bring structure, visibility, and efficiency to workforce management. But as hiring models evolve and organizations rely more on blended teams and project-based work, an MSP program that once worked well can begin to show cracks.
According to John Pickeral, vice president of client development at Maslow Media Group, there are several clear signals that organizations should evaluate whether it’s time to change MSPs. Pickeral points to three indicators that frequently surface when a workforce program has outgrown its current MSP structure:
1. Lack of transparency
A strong MSP program provides clear visibility into workforce spend, supplier performance, and hiring outcomes. When companies struggle to see where budgets are going or cannot easily evaluate cost per hire, the program is missing a core function. Without transparent data, leadership loses the ability to make informed workforce decisions.
2. Lack of adaptability
Workforce strategies have shifted dramatically over the past decade. Organizations are blending full-time employees with project-based talent, hiring across multiple regions, and relying on specialized skill sets for shorter engagements. An MSP model built for a different era may struggle to support these changes.
3. Stakeholder frustration
Another common warning sign comes from internal feedback. Hiring managers may feel that the process is too slow. Suppliers may disengage due to poor communication or unclear expectations. Procurement teams may find themselves resolving constant issues instead of focusing on strategy. When frustration spreads across multiple stakeholders, it often signals that the program structure needs attention.
Treat the transition as a program redesign
Organizations sometimes approach a new MSP search as a vendor swap. Pickeral recommends a different perspective. The most successful transitions begin by defining what success should look like moving forward.
Some companies prioritize stronger visibility into workforce spend. Others want faster hiring cycles, stronger supplier engagement, or improved cost management. These priorities shape how the next MSP program should be structured.
By clarifying goals early, companies can design a program that reflects current workforce needs rather than recreating the limitations of the previous model.
Modernizing your workforce program
Changing MSPs can feel disruptive at first. Yet organizations that approach the transition thoughtfully often discover an opportunity to modernize how their workforce programs operate.
With clear objectives and the right partner, the process can lead to better visibility, stronger supplier collaboration, and a workforce model that supports both immediate hiring needs and long-term growth.