--- title: What's the Difference? In-House vs MSP Contingent Workforce Programs description: In this blog we take a look at some of the challenges associated with contingent workforce management and the different in-house vs. outsourced solutions.. image: https://www.conexisvmssoftware.com/hubfs/What%20are%20the%20best%20vendor%20management%20systems%20(VMS)%20-%20Heres%20how%20to%20choose.92.1.jpg --- - [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo) - [TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-FINAL-1.svg) ![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) - VMS 101 - - [What is a VMS?](https://www.conexisvmssoftware.com/what-is-a-vendor-management-system-vms) - 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In-House vs MSP Contingent Workforce Programs [![Wayne Burgess](https://www.conexisvmssoftware.com/hs-fs/hubfs/Wayne100.png?width=30&height=30&name=Wayne100.png) Wayne Burgess](https://www.conexisvmssoftware.com/blog/author/wayne-burgess) - - - As Businesses hire more externally-sourced workers (such as freelancers, temps and contractors), a common question is whether you should manage your contingent workforce internally or outsource it. In this article, we look at some of the challenges in managing a contingent workforce and the differences between in-house vs outsourced contingent workforce management.  ## What are the challenges of managing a contingent workforce program? The main challenge with any contingent workforce program is that most companies that manage it internally are doing so without the proper expertise, technologies and processes to gain visibility into program performance.  In fact, most companies are using fragmented processes and manual spreadsheets, with no company-wide approach to standardize the entire program. This leads to rogue spending and a complete lack of visibility into what hiring managers are doing, how much they are paying and how staffing agencies are performing.  This results in businesses having no insight into how much money their program costs, how much money they are wasting due to poor hiring practices and inefficient processes, and why they are failing to acquire top talent. ## What are your options when it comes to managing your contingent workforce? To address these challenges, companies have two options. They can either outsource the management of their program to a third-party with expertise in the contingent workforce category or they can invest in a vendor management system (VMS) to improve how they manage the program in-house. Here are the top two options most businesses turn to when it comes to improving their contingent workforce management program. ### **In-House Vendor Management Software** A [vendor management system](https://www.conexisvmssoftware.com/what-is-a-vendor-management-system-vms) (VMS) is a software that automates and centralizes all of the processes associated with the procurement and management of contingent workers internally. This not only improves all processes associated with your contingent workforce management program, but it also gives insights into program performance that help reduce costs and improve talent quality. ### **Outsourced MSP Partner** A [Managed Services Provider](https://www.conexisvmssoftware.com/blog/msp-vs-vms-whats-the-difference-in-contingent-workforce) (MSP) is an outsourced partner that manages either all, or part of, your organization's externally-sourced workforce program. This method is a way of outsourcing your contingent workforce program to an industry expert - alleviating your own team from the burden of managing contingent workers and staffing agencies.  ## Is in-house contingent workforce management right for you? While many businesses can realize great results by outsourcing their contingent workforce program to an MSP, internally-managed programs may be a better choice for some companies with smaller volumes of contingent workers - where the expense of outsourcing their program to an MSP is just too high.  Managing your contingent workforce management program in-house gives your organization the opportunity to truly focus on its business goals, corporate culture and the ability to gain complete control over its externally-sourced workforce. The key, however, if you are looking to manage your contingent workforce internally, is to implement a vendor management system. The right VMS software will help your business monitor and track vendor performance, gain complete visibility of your workforce, automate the end-to-end processes of managing your contingent workers and staffing agencies, ensure contingent workforce compliance and consolidate your vendors (and program) into one centralized location. ## Additional Reading Editors Note: Read a more in-depth view of how to choose whether you use an MSP or in-house VMS in our more recent article: [MSP and VMS: Choosing the Right Model for your Contingent Workforce Program](https://www.conexisvmssoftware.com/blog/msp-vs-vms-differences-how-to-choose-the-right-model) Here is an excerpt from this article:  | ### Choosing a VMS | ### Choosing an MSP | | --- | --- | | ### Choose a VMS when: - You want to manage staffing agencies internally - You have a smaller or mid-market contingent workforce program - Your annual temporary staffing spend is ~$3M–$30M - You prefer control over vendor relationships - You want to streamline processes and improve visibility without outsourcing - You need automation but not a fully managed solution | ### Choose an MSP when: - Your contingent workforce program is complex or enterprise-level - You manage multiple departments, locations, or countries - You need dedicated external support - You want supplier management and program governance handled for you - Your team doesn’t have the capacity or expertise to manage the program internally | | #### **Organizations that use a VMS independently are typically:** - Mid-market companies ($3M–$30M contingent spend) - Organizations with a small HR or procurement team - Companies wanting to modernize without outsourcing - MSPs themselves (white-label VMS to support clients) | #### **Organizations that use an MSP are typically:** - Enterprise companies - Highly distributed operations - Organizations lacking internal bandwidth - Companies with complex compliance or high-volume hiring needs | Note:  An MSP should not run a program without a VMS.  A VMS, however, can run independently without an MSP ## The Conexis VMS Difference Conexis VMS is an [award-winning](https://www.conexisvmssoftware.com/conexis-vms-awards-and-recognition) vendor management system built for organizations that want the power of enterprise software without the complexity or cost. Leveraging the latest technology, Conexis VMS 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](https://www.conexisvmssoftware.com/company) and what makes [Conexis VMS different](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis). ## Discover the Power of Conexis VMS Conexis VMS is trusted by staffing agencies, MSPs and leading organizations to modernize and manage their contingent workforce programs. Here's why organizations choose Conexis VMS: - [Modern VMS Technology](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - Built on the latest AWS microservices architecture and Open API - [Fast Implementation](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) - Get up and running in under a month, free setup and training included - [Fully Branded White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) - Your Logo. Your Domain. Your Branded Communication - [Flexible Pricing](https://www.conexisvmssoftware.com/pricing) - No setup fees, with free implementation, training and account management - [Personal Attention](https://www.conexisvmssoftware.com/vms-nps-customer-satisfaction-adoption) - Experienced senior account management from implementation onward ## Switching Your VMS or Just Getting Started? We work with teams at every stage, from first-time buyers to companies replacing outdated platforms that can't keep up. Either way, we'll show you what a modern VMS looks like, up and running in under 30 days. | [![Take a self-guided tour of Conexis VMS ](https://no-cache.hubspot.com/cta/default/7617376/6617fad0-9168-4a45-b474-c96a34628641.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/6617fad0-9168-4a45-b474-c96a34628641) | [![Book a private consultation with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a) | [![Book a Demo with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559) | | --- | --- | --- |   [![Contingent Workforce Management](https://no-cache.hubspot.com/cta/default/7617376/cecc9213-d7db-45fd-8c60-177c75fc12cb.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/cecc9213-d7db-45fd-8c60-177c75fc12cb) ![Wayne Burgess](https://www.conexisvmssoftware.com/hubfs/Wayne100.png) #### Wayne Burgess Wayne Burgess is the Co-Founder of Conexis VMS, a technology company focused on helping organizations get control of their Contingent Workforce. ### Popular posts ![How Do They Do It? How Conexis Open APIs Deliver Fast VMS Integrations](https://www.conexisvmssoftware.com/hubfs/how%20do%20they%20do%20it-Conexis-VMS-Open%20api_%201200x627-44.jpg) ## [How Do They Do It? How Conexis Open APIs Deliver Fast VMS Integrations](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast) 17 September 2026 ![How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-white-label-vms-1200-627-60.jpg) ## [How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) 24 June 2026 ![How Do They Do It? How Conexis VMS Can Launch in Under 30 Days](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-implementation-1200-627-59.jpg) ## [How Do They Do It? How Conexis VMS Can Launch in Under 30 Days](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) 1 June 2026 ### Subscribe to the Conexis Monthly Newsletter ![Conexis Logo - White](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square-White-V2.svg "Conexis Logo - White") [![Conexis VMS Reviews](https://www.conexisvmssoftware.com/hubfs/www.conexisvmssoftware.png)](https://sourceforge.net/software/product/Conexis-VMS/) - [VMS BENEFITS](https://www.conexisvmssoftware.com/benefits-of-vendor-management-system) - [PRICING](https://www.conexisvmssoftware.com/pricing) - [COMPANY](https://www.conexisvmssoftware.com/company) - [CONTACT](https://www.conexisvmssoftware.com/contact) - [CONEXIS VMS](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - [LEARN](https://www.conexisvmssoftware.com/vms-vendor-management-system-resources) - [TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo) - [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo) ![icon-map-marker](https://www.conexisvmssoftware.com/hubfs/6M%20Files/icon-map-marker.svg)**USA** 350 S NW Highway, Suite 300 Park Ridge, IL 60068 ![icon-map-marker](https://www.conexisvmssoftware.com/hubfs/6M%20Files/icon-map-marker.svg)**Canada** 100 King Street West, Suite 5600 Toronto, ON, M5X 1C9 ![phone-icon](https://www.conexisvmssoftware.com/hubfs/2021/Images/icon-phone.svg)[(312) 776-2006](tel:13127762006) ![SIA\_Corporate Member Logo](https://www.conexisvmssoftware.com/hs-fs/hubfs/SIA_CM_Member_2018%20copy.jpg?width=300&height=74&name=SIA_CM_Member_2018%20copy.jpg)   Copyright © 2026 Conexis VMS - All Rights Reserved. | [Privacy Policy](https://www.conexisvmssoftware.com/privacy-policy) ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Wayne Burgess" }, "dateModified" : "2026-07-23T2:13:09 AM", "datePublished" : "2021-11-24 20:10:35", "description" : "In this blog we take a look at some of the challenges associated with contingent workforce management and the different in-house vs. outsourced solutions..", "headline" : "What's the Difference? 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