Wondering if you should leave your MSP? You’re not alone. More HR leaders, procurement teams, and department heads are questioning whether Managed Service Providers (MSPs) still make sense in 2025.
The short answer: Not always.
In this blog, we’ll break down why so many companies are rethinking their MSPs and what better, more flexible alternatives look like today.
Common Questions People Ask About MSPs
1. What is an MSP in staffing, and how does it work?
A Managed Service Provider (MSP) acts as the middle layer between your company and staffing suppliers. They often use a Vendor Management System (VMS) to control every aspect of contingent hiring submissions, timekeeping, billing, compliance, and vendor selection.
2. What are the biggest problems with MSPs?
The most common complaints include:
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Too much red tape and slow hiring cycles
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Lack of transparency around vendor markups
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Rigid systems that frustrate hiring managers
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Poor candidate experiences due to layers of separation
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Limited flexibility to engage talent directly
3. Can I leave my MSP without disrupting the business?
Yes, with the right partner and a phased transition plan, most companies can exit their MSP with minimal disruption and often see faster fill times, better quality talent, and lower costs.
Why Companies Are Leaving Traditional MSPs
MSPs were originally built for companies with huge temp labor forces and dozens of vendors. But many midsize and even large enterprises now find that they’re overpaying for a system that no longer fits.
Here’s what we hear from clients before they switch:
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“We don’t even know how much our MSP is marking up.”
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“Our hiring managers keep going around the system.”
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“We can’t get fast answers. Everything’s routed through a black box.”
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“Our workforce strategy is evolving, and our MSP can’t keep up.”
Sound familiar?
So, What’s the Alternative to an MSP?
A growing number of companies are moving to in-house models supported by external experts like HQ Simple and modern technology solutions.
Instead of outsourcing control, companies are choosing to own the experience and partner with a trusted team that handles the operational lift without the bureaucracy.
At HQ Simple, we help clients:
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Transition off their MSPs
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Streamline staffing vendor relationships
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Handle W-2 employer-of-record (EOR) and 1099 compliance
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Support hiring managers with real-time help instead of ticketing queues
FAQ: Rethinking Your MSP Strategy
• Is it cheaper to manage contingent labor without an MSP?
Often, yes. Many companies discover they’re paying 40–60% markups through their MSP and can reduce costs significantly by working directly with a leaner partner.
• Do I still need a VMS without an MSP?
Not necessarily. Some clients opt for lightweight tech or embedded support instead of a complex VMS. The key is picking a solution that fits your actual needs not one built for a Fortune 100 footprint.
• What should I consider before leaving my MSP?
Ask yourself:
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How many contingent workers do we really have?
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Are our hiring managers happy with the current process?
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Do we have visibility into pricing, compliance, and vendors?
If your answers reveal gaps, it might be time for a change.
How HQ Simple Helps Companies Replace or Optimize MSPs
We built HQ Simple for companies who want full-service contingent workforce support without giving up control or waiting weeks for basic answers.
Think of us as the anti MSP:
👉 Learn how we help companies rethink their MSP
Final Thoughts: It Might Be Time to Take Control
Whether you’ve outgrown your MSP or feel like you never got the ROI you expected, now’s a good time to reassess.
Don’t settle for slow systems, outdated models, or inflated markups.
There’s a better way and we’re here to help you find it.
Looking for help replacing or rebuilding your contingent workforce program?
Let’s talk.
