What is the difference between RPO and MSP?
The primary difference between Recruitment Process Outsourcing (RPO) and a Managed Service Provider (MSP) lies in the type of workforce they manage. RPO is a strategic partnership focused on permanent or direct hiring, where the provider acts as an extension of the client’s HR team to build a long-term core workforce.
In contrast, an MSP is designed to oversee a company’s contingent workforce, which includes temporary workers, contractors, and freelancers.
While RPO aims to improve the quality of permanent hires and strengthen the employer brand, an MSP focuses on streamlining the management of third-party staffing vendors, ensuring compliance, and optimising costs for non-permanent staff.
RPO typically helps scale internal teams, whereas MSP provides the flexibility and oversight needed to manage fluctuating project demands through external talent.