Driving Efficiency in the Mid-Market: How MSPs and VMS Technology Transform Contingent Workforce Management

Why Contingent Labour Matters for SMBs

• Flexibility in staffing without long-term commitment
• Access to specialised skills on-demand
• Cost control and reduced overhead
• Growing trend post-COVID: project-based, remote, and gig economy workforces

Challenges SMBs face in Managing Contingent Workers

• Lack of visibility into spend and performance
• Compliance risks (tax laws, worker classification, etc.)
• Administrative burden on HR or finance teams
• Supplier relationship management and inconsistent processes

How an MSP Can Help SMBs

• Expertise: Brings industry knowledge and best practices
• Compliance Assurance: Mitigates risk through proper classification and legal oversight
• Efficiency: Streamlined processes and reduced time-to-fill
• Cost Savings: Leverages economies of scale, competitive supplier rates
• Focus: Frees internal teams to focus on core business functions

Here, we explore three practical approaches that can help MSPs and their clients build a streamlined, scalable programme with the right tech in place.

1. Tech-First Approach: Deploy the VMS Before or Alongside the MSP

Some organisations—particularly those looking for greater control or scalability—start by implementing a VMS themselves, either before appointing an MSP or in close coordination with one. This approach allows the client to set the foundation for future growth, while enabling any MSP to plug into the existing platform.

Why this works well in the mid-market:

• Control and continuity: Clients retain ownership of data, workflows and reporting—even if they change MSP or staffing suppliers later.
• Faster scalability: A ready-to-go platform simplifies expansion into new geographies or departments.
• Compliance and consistency: Standardised processes ensure visibility and adherence to local labour regulations across all projects.

With a variety of technology options available, it’s important for mid-market organisations to choose a VMS platform designed to meet their specific needs—such as rapid implementation, ease of use, flexibility, and cost-effectiveness. Selecting the right system from the outset ensures that the technology truly supports growth and adapts to the changing demands of the dynamic contingent staffing market.

2. MSP-Led Model: Delegate the Tech and Staffing to a Single Provider

In this model, the MSP brings their preferred VMS into the programme and handles both supplier management and technology administration on the client’s behalf. This hands-off approach is particularly appealing to organisations that lack internal capacity to manage the day-to-day intricacies of contingent staffing.

Advantages for both clients and MSPs:

• Streamlined onboarding: The MSP leverages their existing expertise and technology stack to set up and manage the programme quickly.
• Lower internal burden: Clients benefit from outsourced administration, compliance oversight and supplier performance monitoring.
• Transparent pricing: Any costs are built into the service model, helping MSPs offer competitive and scalable pricing to clients.

For MSPs serving the mid-market, a suitable VMS platform needs to offer the agility needed to adapt to different sectors, geographies and regulatory environments—without the overheads of more complex enterprise systems.

3. Hybrid Model: Collaborate with Trusted Suppliers via a Lean VMS

In cases where a full MSP arrangement is not necessary or not yet viable, many businesses choose to manage their preferred staffing suppliers directly—supported by a simplified, intuitive VMS.

This is often the case for:

• Mid-sized businesses just beginning their outsourcing journey
• Larger companies with a mix of small-to-medium contingent projects
• Organisations wanting to test or pilot a new programme before rolling out a formal MSP model

Benefits of this flexible model:

• Fast, low-cost setup: With Pixid VMS, implementation is quick, and the modest setup fee is outweighed by reduced administrative and indirect costs.
• Pay-as-you-go scalability: Since the platform is funded via a pay-as-you-go model (paid by staffing agencies), clients avoid large upfront investments and benefit from lower ongoing marginal costs.
• Shared visibility and collaboration: Both clients and their suppliers—or MSP—can work within the same system, improving transparency and communication.

For MSPs, this model also offers an entry point to deliver services for smaller programmes while maintaining control, efficiency and compliance.

Why Pixid VMS is Optimised for the Mid-Market MSP Offering

Whether you’re an MSP managing multiple clients or a business overseeing projects internally, Pixid VMS was built to deliver simplicity without sacrificing performance.

Pixid is ideally suited to a mid-market MSP model thanks to its rapid deployment and ease of use. The implementation process involves a low setup fee as compared to many alternative VMS platforms, and additional, significant savings come from indirect cost reduction—less downtime, quicker onboarding of suppliers, and faster user adoption, which is essential for mid-market success

Additionally, our agency-funded pay-as-you-go model helps lower the ongoing marginal cost per transaction for the client. This makes it easier for MSPs and businesses alike to manage budgets, especially for mid-sized projects that may not justify a high fixed-cost platform.

Key features that benefit both parties:

• Fast deployment across multiple countries
• Support for local compliance and regional workflows
• Centralised data for suppliers, hiring managers and MSP teams
• Affordable and transparent cost structure
• Easy-to-use portals for all stakeholders

And with decades of experience supporting staffing agencies, MSPs, and corporate clients across Europe, Pixid Group understands how to align technology with the operational realities of mid-sized programmes.

Strategic Insights: How MSP Solutions Empower Mid-Sized Enterprises

Pontoon Solutions, one of Pixid’s partners, has witnessed a growing appetite among mid-sized European enterprises for Managed Service Provider (MSP) solutions that go beyond transactional delivery. As their needs evolve, these organisations now prioritise providers who offer strategic workforce insights, regulatory assurance, and scalable delivery models tailored to regional complexity. Through AI integration and continuous service evolution, partners like Pontoon help mid-sized businesses overcome resourcing barriers and drive outcomes.

“The midmarket is no longer a stepping stone to enterprise maturity—it’s a dynamic segment in its own right, with unique challenges and innovation potential, where technology is a vital enabler.” explains Damien Dumont, Sales Director France at Pontoon.

Strategic MSP providers address these challenges by combining the expertise of MSP teams with the power of VMS platforms, delivering scalable, data-driven solutions that help clients meet their workforce goals with agility and precision.
Find out more about Pontoon Solutions

Conclusion: Mastering Workforce Management with Pixid VMS

The mid-market presents a unique opportunity—and challenge—for contingent workforce management. Success depends on balancing control, visibility, and cost-efficiency across diverse teams, suppliers and geographies. Whether you’re an MSP looking for a reliable tech partner or a client seeking better oversight, Pixid VMS delivers the flexibility to fit your model.

Fast to implement. Easy to scale. Trusted by staffing experts.
Pixid VMS helps you manage contingent staffing the smart way—whatever your starting point.