Global managed service providers (MSPs) offer essential remote IT services for organizations of all types, particularly ones that have expanded or are considering an international expansion. For many businesses, MSPs offer reliable services without the headache of sourcing an IT solutions company for one or a few issues; businesses know they have access to professionals whenever a complication arises, as well as will benefit from proactive approaches by the MSP to prevent IT issues.
But as many MSPs rely on contingent workers to fulfill their services, they, too, can spell challenges for businesses that have hired an MSP. Could a global MSP be the best option for your expansion—or could international PEO offer a reasonable alternative at a more favorable price?
MSPs manage customers’ IT infrastructure and/or end-user systems. They often operate proactively and under a subscription model, offering services at different price points. This allows MSPs to offer multiple levels of services that afford them monthly recurring revenue, whereas many IT solutions providers operate on the “break/fix” or one-time model.
The one-time model can often mean that freelancers, independent contractors, or consultants will fulfill the MSP’s needs rather than full-time employees. As contingent workers, they are not on the company’s payroll, and rarely do they receive benefits or equal pay to that of full-time employees and are contracted on an as-needed basis.
Companies often see contingent workers as a vital (and cheaper) part of their workforce. And, while contingent workers offer a wealth of assistance to organizations, they can also create hurdles for both employers and their clients—particularly those who rely on MSPs. Some challenges of working with MSPs that rely on contingent workers include:
- Quickly adapting to a company’s culture
- Uneasiness of sharing sensitive information with non-permanent workers
- Compliance issues concerning misclassification and fines associated with misclassification
International PEO as an Alternative to a Contingent Workforce through a Global MSP
Global MSPs can certainly benefit organizations in their international expansion efforts—even those that rely heavily on contingent workers. However, there are other options for businesses that wish to utilize MSPs without the concerns that can come with contingent workers.
Velocity Global’s International PEO solution offers the same flexibility for an end-user company that a contingent workforce can. And, unlike a global MSP, International PEO can increase worker loyalty, as it allows workers to feel directly invested in the end-user company. Moreover, International PEO does not require a compliance analysis related to the legality of independent contractors.
If you’re currently utilizing or considering hiring a global MSP to assist with your expansion efforts, consider Velocity Global’s International PEO solution to help you reach your global expansion goals through reduced costs and increased flexibility. Get in touch with Velocity Global today to learn more about International PEO.