Staffing history continued... As companies continued looking for ways to compete in the global economy, VMS/MSP providers exploded on the scene with innovative, streamlined processes allowing procurement to channel contract openings to a single supplier who managed hundreds of staffing agencies. Client costs were reduced by the introduction of consolidated billing, where companies only had to write a single vendor check for all contractors to the MSP.
Peopleticker believes that close to 90% of Fortune 2000 firms currently use the single sourced managed service provider (MSP) model. There are now over 500 firms, primarily staffing companies, implementing this model with over 50 VMS software providers supporting the industry.