Subvendor management streamlines the contractual process by allowing an organization, or 3rd party payroll provider, to manage all subvendor relationships within a single Master Services Agreement (MSA). When evaluating the need to outsource subvendor management to a 3rd party payroll provider or keep the function in-house, organizations must consider current vendor relationships as they align with future growth strategies.
Whether you’re responsible for vendor management within a large enterprise or are operating a small-to-medium-sized business, contingent workforce management becomes increasingly complex as organizations continue to engage resources outside of their preferred vendor lists, AKA: Subvendors. And keeping up with your different contingent resources can be a massive undertaking.
As a result, independently managing subvendors can lead to overpaying for services. For this reason, many organizations are outsourcing these responsibilities to a 3rd party payroll provider.