21 May 2024
by Alvius

Technology as a Unique Selling Proposition for Managed Service Provider (MSP) Programs

In today's technology-driven world, it's a given that Managed Service Providers (MSPs) will leverage tech in their programs. However, there's a substantial opportunity for recruitment outsourcing businesses to differentiate themselves through the strategic selection of technology partners. For the most discerning MSPs, this can provide a significant advantage in competitive processes, even before showcasing their own capabilities. Here are the key areas where this differentiation is most impactful:

Clarity and Simplicity Over Confusion and Chaos

We are now witnessing the third generation of modern vendor management software. Most buyers, particularly those with significant experience, are familiar with and wary of outdated technology. The frustrations of poor software—slow, complicated, and illogical—are well-known. Therefore, presenting a supplier with a product that looks and feels like the intuitive apps we use daily on our smartphones will be extremely well received. This approach not only enhances user experience but also builds confidence in the MSP's capabilities from the outset.

Capabilities They Can't Have Had Last Time Round

There are increasing opportunities to deliver meaningful benefits to customers through focused functional development. This strategy is distinct from attempting to offer an overly broad range of functions, which has historically led to cumbersome and over-complicated solutions. By identifying a targeted list of 'headline' feature advancements, MSPs can provide significant value. Examples of these advancements include:

- AI-Powered Job Description Rewriting: Utilising artificial intelligence to create precise and optimised job descriptions.

- Advanced Semantic Search Capability: Enhancing search functionalities with AI to deliver more accurate and relevant results.

- Flexible Output Data Generation: Providing invoice and payroll data in multiple, customisable formats.

- Process and Experience Flexibility: Allowing for adaptable processes and experiences across different customers, which was previously difficult with legacy systems.

Value-Add Modules

Consider tech value-add in terms of introducing an entirely new category of functionality, either instead of or alongside the functional advantages mentioned above. A prime example is talent pooling (direct supply). Although rarely a 'required' element of an MSP program, offering talent pooling through a Talent Pooling System (TPS) demonstrates a commitment to delivering long-term value to customers. Another example is the deployment of a data analytics and reporting tool alongside the core service to generate deeper workforce insights than a standalone Vendor Management System (VMS) could provide.

The Dual Advantages: Differentiation and Stickiness

Incorporating these technology strategies offers two key advantages in selling and running MSP programs:

1. Market Differentiation: These tech enhancements distinguish your MSP from competitors, making it easier to win new business. A well-integrated tech solution reflects innovation and a forward-thinking approach, appealing to tech-savvy clients.

2. Increased Stickiness: Software has a unique ability to integrate deeply into an organisation due to the numerous daily touchpoints it provides. By working in true partnership with tech suppliers, MSPs can make a compelling case for deeper and longer-term integration with clients. This fosters a collaborative environment focused on delivering long-term results without the constant worry of contract renewals. Such integration benefits both the MSP and the customer, allowing for investment in and commitment to sustained improvement.


In the competitive landscape of MSP programs, leveraging technology as a USP is not just beneficial—it's essential. By prioritising clarity and simplicity, capabilities they can't have had last time around, and value-add modules, MSPs can significantly enhance their offerings. These strategies not only differentiate MSPs in the market but also increase their stickiness, leading to deeper, more collaborative client relationships. Ultimately, this approach ensures long-term success and growth for both the MSP and its clients.