The "Netflix-ing" of Today's MSP Solution

So there I was, lounging at home the other night with my lovely wife, trying to decide what to watch after dinner. We had a cozy fire going, a glass of Oregon pinot noir in hand, and our beagle snuggled up with us, helping us forget the foot of snow still on the ground here in Cincinnati. After scrolling through multiple streaming services, we finally settled on Netflix.

A few days later, a friend asked me what I do for a living and what an MSP is. As I explained, I reminisced about the early days of my career back in 2002. Back then, MSPs were all about building a managed supplier network that operated through a vendor management system, which served as the single system of record for all things contingent labor. We could police the activity of suppliers and even the hiring managers to maintain control.

Sounds ancient, right? Like Netflix back in the day! (Remember when they used to mail you DVDs? They used real mail carriers too! You could order three at a time, and then when you were done, return them and get another three DVD's. Even my dad, in his 70s, could handle that!)

And then it evolved! The Netflix journey is a great story, and as you read through it, strikes an uncanny resemblance to the MSP industry itself.

• 1997: Netflix launches with DVD-by-mail services, disrupting Blockbuster and changing our viewing habits. No more rewinding charges!

• 2007: Netflix starts offering streaming services with a small library, using enhanced web technology to present media quickly and on demand.

• 2013: Netflix enters the entertainment production business, debuting "House of Cards" as its first original content, reducing costs of licensed content from other companies.

• 2016: Netflix goes global, launching its platform simultaneously in 130 new countries.

• 2020s: Netflix leverages data intelligence to better predict viewer habits, providing layers of recommended content based on trends.

Similarly, the MSP sector has matured and grown in eerily similar timeframes.

• What started as an administrative process efficiency model has evolved into an optimized method for bringing consumers the talent they want. Replace "productions" with "talent."

• Getting into the "entertainment production" business is like MSPs finding ways to protect other revenue generators in their business model—staffing, payrolling, IC compliance, etc. Like Netflix, MSP demand has globalized in our ever-shrinking world. Sure, it's a bit more challenging to deploy in 130 countries in a single day, but someday!

• Big data, predictive analytics, and now artificial intelligence are playing bigger roles in how talent is sourced, engaged, and managed.

• Today's MSP solutions have evolved from being policing agents and process engineering control mechanisms to enablers of third-party talent, regardless of the source (agencies, 1099, SOW project firms, consulting firms, direct sourced, etc.). What once was a solution focused on cost savings and risk mitigation is now focused on talent pipelining from a wide array of sources, and delivering the talent, and the work itself, faster.  This is what drives a superior user experience, and with it, stakeholder adoption that maximizes value.

Consumer demands will continue to evolve. It will be interesting to watch the continued evolution in the talent solutions space. Something tells me it could take more than an 8-episode limited series to tell the whole story... but we'll be watching!  (I really hope Jon Hamm or Zoe Saldana stars in it!)

Steve Dern is the Founder & Principal Consultant of Trumpeter Consulting, L.L.C.  Leveraging expertise gained over his two decades in talent solutions with nearly 30 client programs, Steve provides consulting expertise to enterprise clients as they navigate their way through the complex world of contingent workforce management, and to suppliers who seek to expand and optimize their operations and revenue streams as they engage end customers via internal program teams or MSP partners.  For more information, email us at steve.dern@trumpeterconsulting.com