Digital transformation is commonplace as businesses look to remain competitive in today’s fast-changing tech landscape. Looking at how tech can be used to improve operational efficiency, drive innovation and productivity and ultimately growth is something that all organisations are prioritising. However, the challenges of achieving this transformation, particularly while managing the talent required to deliver it, can be significant. In these situations, a Managed Service Provider (MSP) can provide valuable support, offering specialised skills and expertise that in-house teams may not possess or have the capacity for.
What is digital transformation
Digital transformation can take many forms, but at its core, it’s about leveraging technology to achieve business goals. This can include digital transformation of systems and processes to drive operational efficiencies, improve customer experience, or even incorporate AI and automation to support and boost productivity.
As more businesses realise the importance of agility and optimisation, digital transformations are increasingly focusing on both technology adoption and the strategic management of change. By streamlining workflows, upskilling teams, and ensuring systems are used to their full potential, businesses can unlock new growth opportunities, increase efficiency, and remain competitive.
How can MSPs support digital transformations
Successful digital transformations are dependent on several factors, however possibly the most important (prior to embedding change) is having the right technical skills in place.
While CIOs lead the charge, having a team of dedicated specialists is critical to ensure a successful transformation. Depending on the type of transformation, these skills could include Data Engineers, Data Analysts, and Data Architects, to optimise and manage systems, Project Managers and Business Analysts who are central to coordinating efforts, ensuring smooth processes, and aligning the transformation with business goals.
For many organisations, one of the first challenges is around acquiring the skills and talent they need to deliver digital transformation. This is where many turn to contingent or contractor talent, however, it is not without challenges. Knowing which skills are needed, finding those niche skills, negotiating rates, onboarding, payroll and ensuring compliance can be extremely time-consuming for talent acquisition teams. With organisations operating leaner, many simply do not have the resources available to manage this increase in contingent labour effectively.
As Justin Somerville-Cotton, Head of Flexhuis UK points out, “when a company is undergoing digital transformation, it’s unlikely that they’re going to have all the bases covered in terms of their skill requirements. This is where the support of an MSP becomes a key consideration for a successful digital transformation.”
Streamlining contingent workforce management
An MSP’s ability to streamline contingent workforce management through improved visibility and control is especially valuable during a digital transformation. By providing a centralised view of the contingent workforce, businesses can better understand costs, tenures and importantly can recognise what skills they currently have and what talent is needed, ensuring that the right skills are available at the right time.
Efficient management of contractors also reduces administrative burdens, allowing internal teams to focus on core transformation activities. This streamlined workforce management supports smoother, more efficient digital transformation processes.
Managing operational inefficiencies
Operational inefficiencies – particularly in hiring, costs, and quality – are clear indicators that a business might benefit from an MSP. When businesses struggle to fill roles quickly or to find talent at the right cost, these issues can significantly hinder digital transformation efforts. As Justin highlights, “The inability to fill roles quickly or get the right talent in at the right time often means that the business isn’t equipped to handle the scale or complexity of transformation projects. By offering quick access to a network of skilled professionals, MSPs can help reduce time-to-hire, manage costs more effectively, and ensure that businesses can meet their transformation goals.”
Simplifying vendor management
As companies begin their digital transformation, they often face increasing complexity in managing their talent supply chain. This can make controlling costs, ensuring availability of tech talent and quality challenging. MSPs can help simplify vendor management by handling supplier relationships, ensuring compliance, and streamlining processes like invoicing. Justin elaborates, “Working through an MSP ensures there’s a constant review of suppliers, and an MSP can onboard new ones as needed, ensuring businesses have access to the best talent without the administrative burden, or risk of costs spiralling.”
This hands-on approach ensures that businesses maintain control over their supplier base while avoiding the time-consuming complexities that come with managing multiple vendors.
Cost and risk management
Cost control and risk mitigation are crucial during digital transformation projects. MSPs help manage these challenges by providing visibility into hiring costs and ensuring compliance across the supply chain. By standardising processes and serving as a gatekeeper, MSPs ensure that businesses maintain consistency and control over their budgets and resources. This helps reduce the risk of overspending and non-compliance, both of which can derail transformation efforts.
Optimised talent acquisition
Many industries face talent shortages, particularly when it comes to hard-to-find and in-demand skills such as tech talent. MSPs address these shortages by leveraging their networks of niche suppliers and contractors. Established MSP providers build reliable talent pools of potential candidates, maintaining contact over time and moving talent from one project to the next. This ensures that businesses have access to skilled professionals even when talent is scarce.
Additionally, MSPs often work with specialist suppliers, offering economies of scale that make accessing niche skills more affordable and efficient. As Justin points out, “It’s crucial to be able to secure in-demand talent quickly when going through a digital transformation, and an MSP can continuously build sufficient supply of talent”.
Supporting your digital transformation
For businesses undergoing digital transformation, partnering with an MSP should be a fundamental consideration, as it offers significant advantages. From managing operational inefficiencies and vendor complexity to addressing skill shortages and mitigating risks such as remaining compliant, MSPs provide the expertise and support that businesses need to successfully navigate the challenges of digital transformation. By partnering with an MSP, businesses can focus on driving innovation and growth, knowing that their contingent workforce needs are in capable hands.
Undergoing a digital transformation?
If your business is undergoing a digital transformation, consider how an MSP can support your journey.
Contact us today to learn more about our Managed Service Provider solutions and how we can help you streamline your operations and access the talent you need for success.