Companies today are under pressure to deliver hiring results faster, smarter and more cost-effectively, making the MSP vs RPO decision more important than ever. Two common solutions often rise to the top of the conversation: Managed Service Provider (MSP) and Recruitment Process Outsourcing (RPO). Understanding the difference between the two and more importantly, identifying which one aligns with your business goals is essential to driving workforce success.
At Suna Solutions, we specialize in workforce solutions that support businesses at every stage of growth. Whether your company needs help managing a contingent workforce or you’re seeking long-term, full-time talent at scale, this breakdown of MSP vs RPO will help guide your decision-making process.
What Is an MSP?
An MSP oversees the end-to-end management of a company’s contingent workforce. This includes everything from vendor selection and rate negotiation to compliance, onboarding and reporting. MSPs are often supported by Vendor Management System (VMS) technology that helps streamline and centralize the procurement of temporary labor across departments and locations.
If your business relies heavily on contractors, freelancers or temporary workers, an MSP can introduce significant efficiencies. For example, at Suna, our MSP programs are designed to offer real-time visibility, faster fill times, and increased cost control.
What Is RPO?
RPO or Recruitment Process Outsourcing, involves outsourcing part or all of your permanent hiring process to an external partner. This model typically covers activities such as sourcing, screening, interviewing, onboarding and even employer branding initiatives.
RPO is ideal for organizations that need to scale quickly or improve the quality and efficiency of their full-time hiring. At Suna, we design RPO programs that integrate seamlessly with internal HR teams while still delivering enterprise-level results.
MSP vs RPO: What’s the Difference?
While both models help organizations manage their talent acquisition processes, they’re built to solve very different problems:
| Feature | MSP | RPO |
|---|---|---|
| Talent Focus | Contingent | Full-time/Permanent |
| Primary Goal | Cost savings, compliance, visibility | Quality hires, faster time-to-fill |
| Technology Backbone | Vendor Management System (VMS) | Applicant Tracking System (ATS) or CRM |
| Use Case | High-volume temp labor, seasonal spikes | High-volume perm hiring, hard-to-fill roles |
| Stakeholders | Procurement, HR, Operations | Talent Acquisition, HR |
When to Use MSP
An MSP solution is right for your organization if:
- You use multiple staffing vendors and need better oversight.
- Your contingent labor spend is growing and lacks visibility.
- Compliance and risk mitigation are a priority.
- Your hiring managers are overwhelmed with vendor communications.
In fact, companies that implement an MSP model see an average of 10-20% cost savings through rate management and process optimization, according to Staffing Industry Analysts (source).
When to Use RPO
An RPO solution is best suited for companies that:
- Are scaling quickly and can’t keep up with perm hiring demands.
- Want to improve candidate quality and reduce time-to-hire.
- Lack internal recruiting infrastructure.
- Are expanding into new markets or launching new business lines.
By leveraging RPO, companies can reduce hiring time by up to 40%, according to Everest Group (source).
Choosing between MSP vs RPO comes down to your workforce strategy. Do you need agility in managing temporary labor, or are you scaling full-time headcount rapidly? Are you focused on cost containment or long-term talent quality?
There’s no one-size-fits-all answer. But with the right workforce partner, you don’t have to figure it out alone.
Whether you’re leaning toward MSP, RPO or a hybrid model, the team at Suna is here to guide you. We’ll analyze your current hiring challenges, help define your goals and build a solution that grows with you.