Are you considering whether your organization requires a VMS or an MSP to help you in managing your contingent workforce? This article examines the difference between a VMS and an MSP, and how they work together to power your contingent management program.
Managing contingent labor is more complex than ever. With rising talent needs, multiple staffing agencies, compliance requirements, and cost pressures, organizations need streamlined, centralized solutions. Two of the most common models are:
Using a Vendor Management System (VMS)
Partnering with a Managed Service Provider (MSP)
Many leaders ask: Do I need a VMS? Do I need an MSP? Or both?
This article explains the differences between an MSP and VMS, the benefits of each, how they work together, and how to choose the right model for your organization.
A managed services provider (MSP) is a company that assumes the responsibility of managing your entire non-employee workforce. This involves outsourcing the complete management of non-employee workers and staffing agencies to an external provider, rather than having it handled by your company’s HR or procurement department.
A vendor management system, also referred to as vendor management software, is a web or cloud-based platform designed to help companies manage, automate, and centralize the oversight of their non-employee workforce in one place.
It's crucial to understand that an MSP and a VMS are not fundamentally different solutions; rather, they represent alternative approaches for managing your contingent workforce program. Utilizing a VMS internally simplifies the management process, whereas an MSP handles the process externally, allowing your internal resources to focus elsewhere.
Choosing a VMS |
Choosing an MSP |
Choose a VMS when:
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Choose an MSP when:
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Organizations that use a VMS independently are typically:
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Organizations that use an MSP are typically:
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An MSP should not run a program without a VMS
A VMS, however, can run independently without an MSP
Here are a few questions to ask yourself, to help you determine which model is best for you:
You maintain data ownership
You keep control over supplier access and configuration
You avoid being locked into a single MSP’s preferred system
Transitioning MSP partners becomes easier
You ensure the VMS meets your requirements—not the MSP’s
Most MSPs readily use the client’s VMS. Some MSPs even prefer this model because it aligns them with client requirements and ensures transparency.
Faster deployment
Standardized processes
Preconfigured workflows they already know
You stay in control
Your technology is consistent even if you switch MSPs
The VMS is tailored to your internal needs
Avoid vendor lock-in
Independent data visibility
The right model depends on your internal resources and strategic goals - but the right VMS is essential in every scenario.
Choosing between a VMS, an MSP, or a combination of both ultimately comes down to your organization’s resources, goals, and the level of control you want over your contingent workforce program. A VMS provides the technology foundation - centralization, transparency, automation, and data-driven decision-making - while an MSP adds dedicated expertise and operational support for organizations that need additional capacity.
Many companies start with a VMS to modernize their processes and gain visibility, then introduce an MSP as their program grows in size or complexity. Others prefer to keep management in-house and rely solely on a VMS to streamline workflows and strengthen supplier relationships. There is no single “right” model—only the one that best fits your structure, capabilities, and long-term strategy.
Conexis VMS gives organizations and MSPs the flexibility to build a solution that fits their needs:
✔ Manage your own program with our VMS
✔ Work with an MSP - who can easily operate inside Conexis VMS
✔ White-label the platform for MSP delivery
✔ Ensure simplicity, visibility, and cost control
No matter which path you choose, Conexis VMS provides the modern technology foundation your program needs.
Perfect for organizations managing their program internally.
Lightning-fast deployment (live in weeks, not months)
User-friendly design—no heavy training required
Real-time analytics and spend visibility
Compliance and documentation hub
Automated processes for sourcing, onboarding, time, expenses, and invoicing
Transparent, flexible pricing with no hidden fees
Cost-effective compared to enterprise VMS platforms
We proudly partner with many leading MSPs
Fully white-label ready
Configurable workflows to match MSP processes
Fast onboarding for new clients
Supplier-friendly design simplifies adoption
Robust reporting for program governance
Ideal for MSPs serving the mid-market
MSPs can scale their portfolio with an affordable, modern VMS
MSPs use Conexis to deliver a better client experience, faster implementations, stronger visibility, and measurable ROI.
Download a copy of our Free VMS Buyer's Guide
Conexis VMS is purpose-built for organizations seeking to manage their contingent labor spend effectively. Here’s why we're the right choice:
Whether you are looking to Switch your VMS, or just Getting Started, we are here to help. Contact Us for a Free No-Obligation Consultation, See how Easy Conexis is to use by taking a quick 2 minute Self-Guided Online Demo, or Book a Personal Demo Today!
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