How to maximise your profits from VMS and MSP accounts
Every staffing recruitment agency has them, those accounts that are hard to make money from. In a just released 2017 report₁, TechServe Alliance, the national trade association of the IT & Engineering staffing and solutions industry, showed that IT and engineering staffing firms were less dependent on VMS/MSP program revenue than previously believed. In fact, according to the report, only ⅓ of revenue was attributable to these typically low margin, low fill rate accounts.
Great news, or is it? That’s still ⅓ of revenue coming from low margin but time consuming accounts, which are very difficult to make money from. Attracting staff to work on these accounts is hard as experienced recruiters don’t want to work on low quality accounts, where margins are so low. Often margins are so tight that even the cost of hiring a junior team member, allowing for a lower salary, are still cost prohibitive when you factor in overheads i.e. electricity, desks, computer etc.
So what can be done? Well, one of the key areas to ensure higher profitability is by controlling internal staffing costs by outsourcing the VMS/MSP account to an offshore recruiting partner. Offering typical cost savings of 50% compared to staffing internally, they allow total flexibility on number of recruiters utilised and provide highly trained and efficient staff only when you need them. They can even handle the VMS/MSP account fully, requiring very little of your recruiters time, ensuring even more cost savings and focus on key business areas.
IMS People is an Offshore Recruitment Service partner with a proven track record in the VMS/MSP arena. We help you save internal staff costs, making even the lower margin accounts profitable, whilst never compromising on efficiency or results. We fully manage VMS/MSP accounts with professional management and highly trained recruiters allowing our clients to achieve on average 50% savings on costs, compared to having internal recruiters.
To find out how IMS People can help email at firstname.lastname@example.org