Originally Published: 19 June 2023

This analysis is based on Nimble Global's proprietary research and 30+ years of practical experience across over 90 countries.

© 2019 - 2026 Nimble Global. All rights reserved.

The Managed Service Provider (MSP) landscape has seen its fair share of highs and lows, with the development of outsourced MSPs and the subsequent foray into second-generation (GEN2) models. Despite these evolutions, there has been an uptick in the "divorce" rate between MSPs and their clients. The reasons are myriad, often rooted in faulty assumptions and misplaced expectations. However, the current 'workforce and technology revolution' presents an unprecedented opportunity to redefine and transform this volatile landscape.

The Real Innovation Revolution: A New Paradigm

As part of this sweeping change, a novel wave of MSP business models is emerging that uniquely combines the strengths of insourcing and outsourcing. These hybrid models offer portable capabilities that span both human expertise and cutting-edge technology. Such a level of innovation is seldom witnessed in our industry and opens up avenues for measurable success.

MSP Talent: The Gig Economy

Interestingly, experienced MSP professionals are increasingly leaning towards the gig economy, making them available as agile (a.k.a. Nimble!), on-demand resources. Their expertise could be invaluable in steering your organization through the sea of changes and innovations that contingent workforce management is currently undergoing.

The Financial Incentives: A Case for Change

A thoughtfully planned reallocation of your MSP's fee revenue can create a compelling business case for change. Imagine your organization spends $25 million with an MSP that charges a 3% vendor fee. That's a substantial $750,000 in annual fee revenue, which could well finance a dedicated resource team, Vendor Management Systems (VMS), cloud technologies, and so much more.

Unshackling from the Hype: Regain Control

For far too long, industry hype has sown doubt and clouded judgment concerning the evolution of MSP models, including shifts towards insourcing. Today, strategic industry partners are dispelling these myths. Whether your focus is regional or global, the increasing mobility of the workforce demands a comprehensive, flexible workforce strategy. And let's face it—nobody understands your organization's culture better than you and your strategic supply chain.

Strategic Shift: The Key Questions

1. What is your definition of innovation? Clarity here is non-negotiable.

2. When did you last witness innovation in your MSP partnership? Honesty with oneself is crucial.

3. What gains did you make from it? Yet again, honesty prevails.

4. What is the quantifiable Return on Investment (ROI)? Look at immediate as well as long-term scales.

5. What future innovations are inked into your MSP's strategic roadmap?

Stay Nimble. Stay Compliant.

About the Author: With extensive experience in workforce compliance and global workforce solutions, David Ballew has consistently driven innovation and operational excellence. As the Founder and CEO of Nimble Global, David combines deep industry expertise with a unique perspective shaped by his neurodiverse AuDHD profile, enabling creative problem-solving and multidimensional insight. A pioneer in MSP models and workforce technologies, he is dedicated to bridging global compliance gaps and helping organisations build resilient, future-ready workforces.

Real People. Real Action. Real Innovation.

Disclaimer: This content is intended for informational purposes only and does not constitute legal, tax, or employment advice. Readers should consult qualified professionals in relevant jurisdictions before acting on the guidance provided. Nimble Global disclaims any liability for actions taken based on this publication.