Too Small for an MSP? What First-Time Buyers Should Know

Nearly 88% of small and mid-sized businesses have partnered with a managed service provider (MSP), proof that this isn’t just for large enterprises anymore. If you’ve assumed MSPs are out of reach for your company, it could be time to think again.

Thinking about an MSP but unsure where to start? Download Taking Control: A First-Time Buyer’s Guide to Managed Service Providers to see how simple and strategic it can be.

What does an MSP do?

A Managed Service Provider specialises in sourcing, onboarding and managing your contingent workforce through a single partner. That means fewer suppliers to juggle, better-negotiated rates, full cost transparency and consistent compliance.

Can you start small?

Absolutely. Most first-time buyers begin with a controlled rollout, starting with one business unit, geography or job family. This phased approach keeps things manageable and allows you to track the impact from the start.

In the early stages, you’ll begin to uncover what was previously hidden: who’s working, how much you’re spending and how consistent your onboarding and compliance processes are. It also helps bring order to what’s often a patchwork of local suppliers and informal arrangements.

Common pitfalls for first-time buyers

The Taking Control eBook outlines several common missteps that can trip up first-time MSP buyers. Here are five to watch out for:

Underestimating your current contingent workforce spend
Many companies don’t have a clear view of how much they’re spending on temporary labour. Costs are often spread across departments, buried in different budgets or misclassified.
Focusing solely on cost savings
While saving money is essential, it shouldn’t be the only goal. Compliance, speed, candidate quality and risk reduction are just as critical, especially in regulated sectors or fast-moving industries. A narrow cost-only focus can lead to short-term decisions that miss the bigger picture.
Skipping stakeholder engagement
MSP success relies on buy-in from HR, procurement, legal, IT and business leaders. If those groups aren’t part of the conversation early on, the programme can stall—or worse, meet resistance at rollout. The guide recommends involving all key functions from the start to shape shared goals.
Not defining clear success metrics
Without agreed-upon measures of success, it’s challenging to track progress or demonstrate value. Whether it’s time-to-fill, contractor retention or supplier performance, agreeing on metrics early helps build momentum and credibility.
Selecting the wrong tech
Choosing a vendor management system (VMS) that doesn’t align with how your teams work can cause frustration and low adoption. The e-book emphasizes the importance of selecting technology that supports your workflows and goals, not just what looks good on paper.

Avoiding these pitfalls doesn’t require a huge lift. With the proper planning and a partner who understands your business, first-time MSP adoption can be smooth, strategic and surprisingly fast.

Ready to explore an MSP?

Whether your contractor base is small or growing, an MSP can provide you with clarity, control and a competitive advantage. Taking Control: A First‑Time Buyer’s Guide to Managed Service Providers delivers practical advice, real-world strategies and essential guidance to help first‑time buyers confidently take the next step.

Download Now