How MSPs are reshaping workforce planning in an AI-driven economy

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Market insights
Article by Horizontal Team
Jul 10, 2025
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Today’s workforce is undergoing a massive transformation, and from AI-powered analytics to automated talent matching, what’s worked in the past when finding and retaining talent is becoming increasingly irrelevant.  

The continued dependence on future-ready Managed Service Providers (MSPs) to navigate and enhance today’s contingent workforce market is a primary catalyst for this transformation. Organizations have varied in their use of MSPs, but they continuously monitor workforce planning trends and offer expertise in the changing landscape.  

The rise of the contingent workforce  

Today’s labor market is more fluid than ever. A Deloitte study found that nearly 64% of organizations now utilize some form of contingent labor, a figure projected to climb as organizations adapt to ongoing economic uncertainty and digital disruption. This highlights a continued upward trend in freelance and gig opportunities as contingent talent continues to grow at a remarkable pace. Enter AI-driven technologies, which enable organizations to rapidly source, screen and onboard global talent.  

Why MSPs matter in an AI-driven market  

There are several reasons why organizations are leveraging MSPs:

Talent sourcing and curation: MSPs use advanced AI and data analytics to find specialized skill sets. Using global talent pools, they (and their staffing partners) match roles to the most capable talent, reducing time-to-hire and improving candidate quality.  

Compliance and risk management: Navigating labor laws, regulations and compliance issues is increasingly complex. MSPs provide standardized processes and automated compliance checks, mitigating legal and financial risks.  

Cost optimization: Data-driven insights allow MSPs to assist with workforce planning, preventing overstaffing or underutilization and ensuring organizations only pay for the skills they need when needed.  

Strategic workforce planning: MSPs help organizations forecast future skill gaps, plan for emerging roles in AI and data science and design onboarding processes. MSPs help build scalable, flexible workforces by aligning workforce strategies with corporate goals.  

MSP trends for the contingent workforce  

As reliance on the contingent workforce continues, we’re identifying some important trends for organizations to monitor:

Total talent management: While this isn’t a new concept, it’s gaining traction. In this model, MSPs adopt an integrated view of human capital, ensuring that contingent and permanent staff are treated cohesively from workforce analytics, performance tracking and training/development perspectives.  

AI-based candidate experience: MSPs (and their staffing partners) utilize AI tools, such as chatbots and predictive skill assessments, to simplify candidate engagement. This approach aims to improve the candidate experience and generate data to optimize hiring strategies.  

On-demand upskilling and reskilling: Keeping pace with emerging AI roles requires continuous learning. MSPs are partnering with e-learning and training platforms to offer curated upskilling modules tailored to the contingent workforce, effectively future-proofing talent pools.  

How we can help

The traditional boundaries of workforce planning and management are quickly shrinking. As a staffing agency that partners with Managed Service Providers, we are uniquely positioned to help businesses navigate this landscape. Armed with advanced analytics, global talent networks and holistic workforce strategies, our collaboration with MSPs allows us to provide support in attracting and retaining top-tier talent.  

We also ensure organizations can tap into the future of work: agile, data-driven and built to thrive during rapid technological change. Our partnership with MSPs enhances our ability to match roles to the most capable talent, reducing time-to-hire and improving candidate quality.  

The future of work is here. If you want to learn more about our collaboration with MSPs, contact us today.
 

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