What is the difference between RPO and MSP?

Recruitment Process Outsourcing (RPO) handles your permanent hiring, with the provider acting as an extension of your HR team to source, screen, and onboard full-time employees. A Managed Service Provider (MSP) manages your contingent workforce, overseeing temporary workers, contractors, and freelancers through a coordinated network of staffing vendors.

In short: RPO builds your core, permanent team. An MSP manages the flexible, non-permanent talent your business relies on for project-based or seasonal work.

Both models aim to improve hiring efficiency and reduce costs, but they serve very different workforce needs. Here is a closer look at how they compare across the areas that matter most.

An RPO provider recruits candidates directly using its own talent acquisition team, databases, and sourcing channels. It takes ownership of some or all of your permanent recruitment process, covering everything from workforce planning and employer branding to interviewing and onboarding. The goal is to improve quality of hire, reduce time-to-fill, and lower cost-per-hire for permanent roles.

An MSP does not typically recruit candidates itself. Instead, it manages the supply chain of staffing agencies that provide your contingent talent. Using a Vendor Management System (VMS), the MSP gives you visibility over contingent spend, ensures compliance across all worker engagements, consolidates invoicing, and drives cost savings. A well-run managed services program can reduce agency spend by up to 20%.

Some organisations use both models together. This blended approach provides complete oversight of permanent and contingent hiring under a single talent strategy. TRS Workforce Solutions delivers both RPO and MSP solutions, including our integrated ONEMSP model.