Network Enhancers - "Delivering Beyond Boundaries" Headline Animator

Sunday, June 3, 2012

Important Metrics in an MSP (Managed Service Provider)

Below are a few metrics that should be measured in a Best-in-Class program-

MSP (Managed Service Provider) Performance Metrics and Definition:
  • Response Time = Elapsed time from order receipt to resume submittal of a placed contractor
  • On-Time Fill = Percentage of engagements starting on-time based on the estimated start date
  • Cycle Time = Elapsed time from order receipt to confirmation of placement
  • Negative Turnover / Negative Performance = Percentage of engagements ended early for negative reasons (performance, resignation, etc.)
  • Contractor Performance = Overall level of Hiring Manager satisfaction relative to the contractor's performance
  • Customer Satisfaction = Overall level of Hiring Manager satisfaction relative to program quality, process, and PMO interaction
  • Supplier Satisfaction = Overall level of supplier satisfaction relative to program quality, process, and PMO interaction
  • Diverse Spend = Percentage of minority spend against overall program spend
  • Cost Reduction Savings = Negotiated conversions above and beyond contractual conversion schedule that save the customer spend towards a conversion fee
  • Contractor Conversion Savings = Total dollars saved by enforcement or further negotiation of contractual conversion schedule
  • Innovation = What types of solutions did the MSP/ VMS (Vendor Management System) bring to the table?
  • Strategic Counsel = What type of workforce planning, market/ industry/ competitive intelligence and proactive initiatives did you bring to the table, thus producing added value, ROI and cost avoidance?

Typically, these metrics are reported on a quarterly basis back to the client. However, should it suit the needs of the client, The MSP provider should report them more frequently, especially in the first year of a newly implemented program. The PMO staff should monitor these metrics on an ongoing basis to ensure that targets are being met and that trends are identified before they become an issue. From the day-to-day interactions between the MSP program management team and end-users, to formal quarterly business reviews that occur at the highest level of the client relationship, a best-in-class MSP creates multiple opportunities to exchange information and proactively identify areas for improvement. Furthermore, leveraging a robust VMS and it reporting/ analytics functionality – The MSP provider should look to analyze unusual trends or spikes in contractor usage and incorporate some Workforce Planning strategies so as to reduce service issues and manage the supplier base and their fulfillment capabilities more efficiently.



  1. That’s a crisp, short and really helpful post. This’ll surely help the people working with VMS tools to understand the processing units and standards better. Thanks for the metrics and related information.

  2. Greeting!! I really impressed for your post because you described the Manged service provider clearly. Many IT Managed Service Providers are faced with providing support for their managed service contracts and solutions sold to businesses. Support contracts would generally come with stipulations for monitoring and a Response Time that the MSP has guaranteed the customer that their problem will be addressed within.


My Blog List

Networking Domain Jobs