Choosing the right VMS is crucial for an MSP. Consider these five key factors before deciding on the best VMS for your organization.
Not all Vendor Management Systems are alike
The ideal Vendor Management System (VMS) is more than just a piece of technology; it's a strategic tool that empowers clients to efficiently and effectively reach their workforce management objectives.
When choosing a VMS, MSPs must ensure it meets the specific needs of their clients. The selected VMS can greatly influence the efficiency with which clients oversee their contingent workforce, optimize processes, and fulfill their business goals. It's crucial that the VMS provides flexibility, support, seamless integration, and access to data, rather than imposing a one-size-fits-all, rigid solution onto a business. In this way, an MSP can stand out over its competitors by adding value and improving ROI to their clients.
5 Critical Considerations for MSPs when choosing a VMS
Here are five critical considerations for MSPs when deciding on the best VMS for their clients:
1. Functional Requirements: Align with your client's needs
The first and most critical factor in selecting a VMS is ensuring its functionality aligns closely with the client’s business needs. Every organization has its unique processes, and the VMS should support those processes rather than force the client to change their workflow to fit the software. For example, the VMS must support global hiring and compliance requirements if the client operates in multiple countries. On the other hand, a mid-market company with a smaller contingent workforce may not need the extensive features of a VMS designed for large enterprises. Choosing the wrong system can result in inefficiencies, frustration, and even project failure. MSPs must take the time to understand their client’s unique needs and select a VMS that fits rather than trying to make the business fit the system.
2. Flexibility: Customization and Adaptability Post-Implementation
Another critical factor is how flexible the VMS is regarding changes and customization after implementation. The reality is that businesses change, and the VMS must have the ability to evolve alongside them. MSPs should look for a VMS provider that allows customizations based on client needs. If the VMS is rigid or the provider is unwilling to make changes, clients could find themselves stuck with a system that no longer meets their requirements after a few years. The ability to quickly adjust workflows, add new integrations, or customize reporting should be part of any VMS decision.
3. Support and Care: Right-Sizing the VMS for Your Client
It’s essential to ensure the chosen VMS is the right fit for the client in functionality in terms of support and customer care. Using an enterprise-level legacy VMS for a mid-market client may seem like an intelligent decision initially, but it often leads to poor customer care. For larger VMS providers, clients with lower spending usually don’t receive the level of service and attention they require because their revenue contribution is minimal compared to more prominent clients. Instead, MSPs should look for a VMS provider with a proven track record of supporting businesses of similar size and complexity. Right-sizing the VMS ensures clients receive the attention and care they deserve.
4. Integration Capabilities: Ensure Seamless Connections
The ability of the VMS to integrate with other systems, such as HR platforms, payroll systems, or applicant tracking systems (ATS), is a crucial factor. Many older VMS platforms have rigid, outdated architectures, making integration difficult and expensive. In today’s technology landscape, this can be a significant limitation. MSPs should prioritize VMS platforms offering Open API capabilities, allowing seamless integration with the client’s existing systems. An Open API enables quick integrations and future-proofs the VMS as new technologies emerge, and the client's needs evolve.
5. Data Accessibility: Take Control of Your Data
Finally, MSPs should consider how accessible the data is within the VMS. Today’s MSPs should look to own their data and be able to leverage it in meaningful ways. Some VMS platforms restrict access to raw data or lock MSPs into using only the platform’s reporting tools. This can limit an MSP’s ability to build custom reports or feed data into their Business Intelligence (BI) platforms. Choosing a VMS that offers full, unrestricted access to data will empower MSPs to analyze workforce data in real time and make more informed decisions on behalf of their clients.
Final Thoughts
Choosing the right VMS for a client is a critical decision that should never be taken lightly. MSPs must focus on selecting a system that aligns with the client’s business needs and offers flexibility, support, seamless integration, and data accessibility. By considering these five factors, MSPs can ensure they implement a VMS that enhances their clients' operations rather than hinders them. The right VMS is not just a technology solution - it’s a strategic enabler that helps clients achieve their workforce management goals effectively and efficiently.
Why Conexis VMS is the Right Choice for MSPs
Whether you're managing a mid-size contingent workforce program, supporting multiple clients across regions, or looking for a mid-market VMS to add to your offering, the right VMS can amplify your MSP services and deliver real, measurable results.
We’ve built a VMS specifically for mid-market contingent workforce programs that is easy to use, cost-effective, flexible, and fast to deploy. Our platform can be implemented in as little as a few weeks (not months), helping you deliver value to clients faster than ever before.
Learn more about Conexis VMS Solutions for MSPs
Additional Reading for MSPs
Growing your Business with a VMS:
- MSPs & Staffing Agencies: Grow your business with a White-Label VMS
- Why Mid-Market MSPs need a Mid-Market VMS
- The MSP Advantage: Why You Need a Mid-Market VMS in Your Toolkit
VMS Technology MSPs need:
- MSPs: Why Open APIs in VMS is a Game Changer for MSPs
- How MSPs can get unrestricted access to your own data with a VMS
- Legacy vs Modern VMS - What's the Difference?
- Why MSPs need a more customizable VMS to be competitive
- Why Mid-Market MSPs Need a Mid-Market VMS
- How Conexis with our Open APIs delivered results for our MSP Partner!
Adding Client Value with a VMS:
- MSPs: How VMS Software can deliver higher ROI for your Clients
- MSPs: 3 Ways to Immediately Add Value to Your Client's Programs
- VMS MSP Adoption: The Key to Successful Contingent Workforce Program
- Why Customer Care is important - 5 VMS Best Practices
Moving from Spreadsheets to a VMS:
- 6 Reasons to switch from spreadsheets to a vendor management system
- VMS 101: How to get started with a VMS
Replacing your in-house VMS:
Choosing the Best VMS for your MSP:
- MSPs: 5 Key Factors to Consider when choosing the Right VMS
- The 4 Key Features that define an Exceptional VMS for an MSP
- Can I switch my VMS without switching my MSP?
- Conexis MSP Case Study: Launching a more Modern & Scalable VMS for Mid-Market Clients
- Conexis MSP Case Study: How Open APIs delivered results for our MSP Partner
MSP & VMS Partnership:
- Why MSPs Need a VMS Partner, not just a Vendor
- MSP and VMS Partnerships: Choosing the Right Model for your CW Program
- MSP vs VMS - What's the difference?
- The Conexis VMS Solution for MSPs
About Conexis VMS
Conexis is an award-winning Vendor Management System built for organizations that want the power of enterprise software without the complexity or cost.
Leveraging the latest technology, Conexis delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our Company and why organizations Choose Conexis VMS.
Discover the Power of Conexis VMS for MSPs
Conexis VMS is purpose-built for organizations seeking to manage their contingent labor spend effectively. Here’s why we're the right choice:
- Fast Deployment: Get up and running in weeks, not months
- Transparent Pricing: Flexible pricing with no hidden costs
- White-Label Ready: Customize the platform with your brand
- Real-Time Insights for MSPs: Built-in analytics and unrestricted access to your own data
- Audit-Ready Compliance: Store contracts, worker data, and rates in one secure hub
Contact Us
Whether you are looking for a new VMS partner, 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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