blogs & articles

Evolving your contingent workforce program for better visibility, control and cost-efficiency

June 3, 2026

TL;DR

Contingent workforce management has outgrown the legacy MSP models built to support it. If your program has been running for three or more years, it is likely showing familiar signs: low adoption, limited sourcing innovation, poor workforce visibility, and flat cost performance. A next-generation approach combines workforce analytics, direct sourcing, and outcome-focused partnership to deliver real savings, better talent access, and a program your hiring managers will actually choose to use.

Your MSP solved the right problem. In a different era.

When your organization first implemented a managed service provider program, it brought real value. It centralized a fragmented supplier landscape, created process consistency, and gave finance and procurement a clearer line of sight into external workforce spend.

That was then.

Contingent workforce management has since fundamentally changed. According to SIA (Staffing Industry Analysts), the US contingent workforce market exceeded $200 billion in managed spend in 2025, and the complexity driving that spend has grown significantly. Contractors, freelancers, consultants, and statement-of-work talent now support critical functions across technology, AI transformation, operations, finance, and customer delivery. The skills being sourced are harder to find. Compliance requirements are more demanding. The expectations of hiring managers and contingent workers themselves are considerably higher.

Most legacy MSP programs have not kept pace. They were designed around requisition processing and vendor coordination. They were not designed for proactive sourcing strategy, real-time workforce analytics, direct talent pipelines, or the branded hiring experience that drives program adoption rather than undermining it.

The result is a familiar pattern: a contingent workforce program that looks functional on the surface, but is quietly losing ground on cost control, talent quality, and stakeholder trust.

Signs your contingent workforce program has outgrown its MSP

The organizations that come to AMS about program modernization are rarely in crisis. They are in a slower, more frustrating situation: a program delivering diminishing returns, and an MSP that cannot explain why or offer a credible path forward.

Here are some common signs of an underperforming contingent workforce program:

Limited sourcing innovation. The program is reactive, heavily reliant on the same vendor lists it has used for years. There is no direct sourcing capability, no talent pooling strategy, and no meaningful approach to sourcing high-demand skills in areas like AI, cybersecurity, or specialized engineering.
Low program adoption. A significant percentage of the contingent workforce is circumventing the managed program entirely. Hiring managers have found faster workarounds, which means unmanaged spend, compliance exposure, and workforce data that cannot be trusted.
Poor workforce visibility and reporting. The MSP delivers basic vendor metrics but not time-to-fill analytics, quality-of-hire data, diversity reporting, or the market intelligence procurement and talent leaders need to make strategic decisions.
Outdated technology. The VMS is slow, non-intuitive, and disconnected from the broader HR technology stack. The candidate experience does not reflect the organization’s employer brand. Contingent workers are processed as vendors rather than engaged as talent.
Stalled improvement. After the first year, incremental value starts to level off. Communications become transactional rather than innovative and strategic.
High cost from avoidable channels. The same agencies are being used as the default sourcing option because no alternative pipeline exists. Talent becomes repeatable because it’s sourced from the same well again, and again.

If several of these are recognizable, the issue lies beyond simple configuration adjustment or performance management. It is structural and may require a deliberate program redesign.

See how AMS approaches contingent workforce program consulting and diagnostics.

Why program adoption is the most expensive problem you are not measuring

If your hiring managers have found a way around your contingent workforce program, they are not being difficult. They are responding rationally to a program that is not working for them.

Slow approvals, difficult systems, inconsistent candidate quality, sourcing teams that cannot move at the pace hiring requires, each creates a rational incentive to go off-program. The downstream effects compound quickly: unmanaged contingent spend, inconsistent onboarding, fragmented workforce data, and compliance exposure that grows every time a worker is engaged outside the governance structure.

Stricter enforcement does not fix this. A better program experience does.

This is why branded program design – hiring workflows that reflect the organization’s employer value proposition, intuitive technology, and sourcing quality that earns hiring managers’ trust, is increasingly central to what next-generation contingent workforce management delivers. For a leading UK-focused bank, AMS managed more than 15,000 SOWs, impacted £1 billion in workforce spend, and delivered £40 million in savings and cost avoidance across 17 countries. That level of adoption does not come from compliance enforcement. It comes from a program that is genuinely better than any available workaround.

What next-generation contingent workforce management looks like

The phrase “next-generation MSP” has grown in recent years within the contingent hiring space. It describes a structural shift that several organizations are looking for: from transactional vendor management to talent-centric, experience-driven, insight-led workforce partnership.

In practical terms, that means several things that most legacy contingent workforce programs do not currently offer:

Proactive sourcing strategy, not reactive vendor coordination. Role-by-role sourcing insights, direct sourcing pipelines, strategic supplier networks, and access to niche channels for high-demand skills, all before a requisition reaches a staffing agency.
Real workforce intelligence. Benchmarked rate data, time-to-fill analytics, quality-of-hire reporting, diversity of candidate slate, predictive demand forecasting, and compliance risk identification. The kind of contingent workforce analytics that allow procurement and talent leaders to optimize the program rather than simply monitor it.
Technology that works. AMS partners with more than 300 workforce technology vendors and has delivered more than 1,000 client implementations, with ethical AI capabilities built into program design. For Deloitte, AMS manages 700 helpdesk queries per month, 12 active integrations, and 120 system changes annually, the operational depth required to keep a complex, evolving technology environment running effectively.
Certified expertise, not generalist administration. AMS programs are run by CIPS and CCWP-certified procurement and talent specialists. Recognized as a Star Performer in the Everest Group PEAK Report for Contingent Workforce Management, AMS also brings 15 consecutive years of leadership in the Everest RPO PEAK Matrix to every engagement.
Independence from staffing agency ownership. AMS operates without conflicts of interest from staffing agency ownership. Sourcing decisions are made in the client’s interest, not in service of filling the MSP’s own agency pipeline – a meaningful distinction when redesigning supplier strategy.
Scalability when it counts. Following COVID-19, AMS rapidly scaled to 225 resources for a leading airline company to fill more than 21,000 contingent and permanent roles. Scalable program design, backed by 12 global capability centers, means workforce demand can be met quickly when business conditions require it.

Learn more about AMS Contingent Workforce Solutions.

Next-generation MSP is a natural shift toward a Total Talent approach. It requires more than just a switch in tools or suppliers, but realigning how an organization think about work, talent and workforce strategy. Often, the first step is a thorough diagnostic of the existing program to understand where the gaps are, and which issue should be prioritized for the greatest impact in the near and long-term.

Direct sourcing: from contingent workforce differentiator to standard strategy

Organizations with heavy agency dependency tend to remain in that cycle because they have not built an alternative. Every role that goes to an agency is a role that did not leverage the organization’s employer brand, did not build a reusable talent pool, and did not generate the candidate data that improves sourcing performance over time.

AMS branded direct sourcing changes that. By leveraging the client’s employer value proposition, AMS builds client-owned talent pools that reduce agency reliance, improve candidate quality, accelerate hiring speed, and create more consistent contingent workforce experiences , including for contractors and freelancers who increasingly choose their engagements based on how organizations treat them.

According to Ardent Partners and Future of Work Exchange research, nearly 70% of businesses now have some elements of direct sourcing in place, yet only 11% have a full end-to-end program running. For most organizations, the majority of the value direct sourcing can deliver remains unrealized. As program adoption continues to grow, direct sourcing capability is increasingly what separates next-generation programs from those still operating on legacy models.

Explore AMS Branded Direct Sourcing.

Services procurement: the workforce visibility gap that keeps growing

Many organizations manage contingent labor and services procurement through entirely separate processes. The result is a growing visibility gap across statement-of-work engagements, project-based consulting spend, outsourced services, and supplier accountability. This exact gap will expand in proportion to how much SoW spend is increasing.

Integrating services procurement into a unified contingent workforce management strategy, managed by CIPS-certified professionals, improves spend visibility, supplier governance, workforce tracking, and compliance oversight across the full external workforce.

The Public Sector Resourcing program in the UK illustrates the scale of what becomes possible: more than 100,000 roles filled, $540 million in savings since launch in 2018, and a proprietary talent pool of more than 40,000 individuals.

Learn more about AMS Services Procurement.

Three contingent workforce management priorities for enterprise leaders

Get an honest picture of where your program actually stands
Most organizations lack a clear view of the size of their workforce visibility gap, the volume of off-program activity, or where the largest cost opportunities are. A comprehensive diagnostic, which includes benchmarking rates against market data, assessing supplier performance, mapping unmanaged spend, and reviewing technology and governance, provides the foundation for making the case for change and choosing the right path forward.
Build a sourcing strategy that does not default to agencies
Supplier rationalization combined with direct sourcing and access to niche supplier channels changes the cost structure of contingent hiring sustainably. It also improves candidate quality and reduces the time-to-fill variance that causes hiring managers to lose confidence in the program.
Redesign forgreater adoption, visibility and cost control
A next-generation contingent workforce program is one that hiring managers choose to use because it is better than the alternative. Branded program design, modern technology, and consistent candidate quality create the adoption that makes every other metric improve.

Questions to ask about your current contingent workforce program

Sourcing and talent quality

Is your MSP proactively building talent pipelines for high-demand skills, or primarily coordinating existing vendor lists?
Do you have a direct sourcing capability? If not, what is the long-term cost of that agency dependency?
Are hiring managers satisfied with candidate quality and speed, or routinely finding their own channels?

Workforce visibility and analytics

Can you accurately track all contingent workers, including SOW and freelance engagements, globally?
Are workforce rates benchmarked consistently against real market data?
Is your workforce data reliable enough to support strategic planning decisions?

Technology and experience

Is your VMS intuitive enough that hiring managers want to use it?
Does the contingent candidate experience reflect your employer brand?
Is your MSP actively leveraging current technology, or managing accumulated technical debt?

Cost and value

When did your program last deliver a meaningful improvement in cost per placement?
Are you confident your MSP is exhausting lower-cost sourcing channels before releasing roles to agencies?
Is your provider genuinely invested in your outcomes, or focused on maintaining the status quo?

Compliance and governance

Are worker classification processes standardized across regions and business units?
Can compliance risks be identified proactively, before they become liabilities?
What percentage of your contingent workforce is currently outside the managed program?

Programs that cannot answer these questions with confidence are carrying more risk and more unmanaged contingent spend than their current reporting suggests.

The case for evolving your contingent workforce management strategy

Organizations are discovering that legacy contingent workforce programs are not meeting today’s business needs. Evolving the program is crucial because business outcomes directly depend on the speed, quality, and diversity of talent sourcing. Leading organizations that have done this are seeing greater workforce visibility, dramatic cost savings, and improved program experiences that earn higher adoption.

Legacy MSP programs that are not evolving will keep producing the same outcomes: rising contingent labor costs, inconsistent workforce quality, growing unmanaged spend, and compliance exposure that accumulates quietly. These issues propagate over time and dull an organization’s competitive edge to attract high quality talent.

Getting it right starts with an honest assessment of where the gaps are. AMS works with organizations through consulting diagnostics, next-generation MSP design, branded direct sourcing, services procurement, and insourced VMO support , tailored to each client’s specific maturity, priorities, and workforce strategy. With $2.3 billion in MSP spend under management, $1.1 billion in services procurement spend, and 40,000 workers under management globally, AMS brings the scale, expertise, and track record to deliver change that lasts.

Ready to assess where your contingent workforce program stands? Speak with an AMS expert to identify opportunities to improve visibility, control, and cost-efficiency across your external workforce.

FAQs

What is contingent workforce management?

Contingent workforce management is the strategic process of sourcing, governing, and optimizing external workers , including contractors, freelancers, temporary workers, consultants, and statement-of-work engagements. It combines workforce visibility, supplier governance, compliance management, analytics, and sourcing strategy to improve cost control and hiring outcomes across the non-permanent workforce.

What is a next-generation MSP program?

A next-generation MSP moves beyond transactional vendor management to deliver workforce analytics, proactive direct sourcing, branded candidate experiences, compliance management, and talent acquisition expertise aligned with the organization’s broader workforce strategy. It functions as a strategic talent partner rather than an administrative vendor coordinator.

How do I know if my contingent workforce program needs to be replaced?

Key indicators include low program adoption, limited sourcing innovation, poor workforce visibility, outdated technology, flat cost performance year over year, and an MSP that is maintaining operations rather than driving continuous improvement. A structured diagnostic is the most reliable way to quantify the scale of those gaps.

What makes AMS different from other MSP providers?

AMS operates without conflicts of interest from staffing agency ownership, is staffed by CIPS and CCWP-certified procurement and talent specialists, and partners with more than 300 workforce technology vendors across more than 1,000 client implementations. Recognized as a Star Performer in the Everest Group PEAK Report for Contingent Workforce Management, AMS delivers outcome-focused program design tailored to each client’s specific workforce strategy.

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