MSPs enabling Services Procurement transformation

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How MSPs are transforming Services Procurement

In this article, Everest Group’s guest authors—Soumya Bansal and Lokesh Goyal—delve into how MSPs are evolving to strategic enablers of services procurement transformation.

Managed Service Providers (MSPs) are becoming strategic enablers of services procurement transformation, helping organisations unlock value across both tail spend and high-value project-based work.

By integrating automation, analytics, and governance, MSPs deliver solutions that align procurement with business strategy.

Key benefits of MSP-led Services Procurement

Organisations working with modern MSPs are able to:

Centralise spend visibility and analytics. Real-time data enables smarter budgeting, forecasting, and supplier performance management.

Optimise VMS selection and integration. MSPs help align Vendor Management Systems (VMS) with workforce goals and streamline operations.

Automate SOW workflows. Automation simplifies SOW creation, approval, and tracking—reducing cycle time and improving accuracy.

Implement workforce classification frameworks. Clear, compliant classification helps organisations reduce risk and meet local labour laws with confidence.

Why it matters?

This shift in how MSPs support services procurement allows businesses to:

  • Align procurement strategy with broader organisational goals
  • Gain control over unmanaged tail spend
  • Improve project accountability and compliance
  • Drive cost optimisation and risk reduction

Key takeaways

MSPs are essential partners in both tactical and strategic services procurement. 

Automation and real-time analytics deliver measurable efficiency gains. 

Workforce classification and governance frameworks are critical for compliance and control.