Key Takeaways
- The UK has a big shortage of IT talent, especially in areas like AI, cybersecurity, and cloud computing.
- Managed Service Providers (MSPs) help solve this by giving businesses a clear hiring process, faster results, and access to more skilled people.
- MSPs handle every step of hiring in an organised way. It includes raising job requests and finding candidates, screening, onboarding, and reporting.
- They also track key numbers like how long it takes to hire, the cost per hire, and the quality of candidates. This helps employers make better choices.
- Fortray’s MSP services make hiring simpler, save money, and ensure everything stays compliant with rules.
- Both small and large companies can benefit from MSP hiring, especially if they hire often or need hard-to-find tech talent.
- With MSPs, businesses can build strong IT teams that work well and quickly adjust to market changes.
Why is it so hard to hire good tech talent, even when roles are open and budgets are approved? If you’ve been asking yourself this lately, you’re not alone. The talent shortage in UK is an alarming issue. What’s the reason behind it? Let’s get to the roots!
The answer to this question does not lie in the talent pool itself but in how companies manage the hiring process. That’s where Managed Service Providers (MSPs) come in. A lot of you might know about MSP IT hiring, but many of you might not.
This blog will walk you through everything you need to know about MSPs, MSP IT hiring, and how MSPs help UK businesses solve IT hiring challenges, not just by sourcing talent, but by managing end-to-end workflows by using real-time recruitment metrics and improving the quality and speed of each hire.
Who are MSPs, and what do they do?
Managed Service Providers (MSPs) are workforce management partners that handle the end-to-end hiring process. They take over the entire recruitment process for another organisation. MSPs are mainly for contract, temporary, or contingent IT roles. They act as a bridge between the employer and multiple staffing agencies or talent suppliers.
Instead of dealing with multiple vendors separately and relying on scattered processes like fragmented or ad hoc hiring, what companies do is they use MSPs. Why? To streamline the recruitment processes. This not only simplifies the hiring process but also drives performance using vendor management systems (VMS) and ensures compliance through governance frameworks.
MSPs are not limited to contingent hiring; they also increasingly support permanent IT placements using performance-based models.
Understanding the IT Talent Shortage in the UK (2025)
The UK has long been known as a hub for technology. In London especially, fintech is growing fast, with companies creating new payment systems, lending platforms, and blockchain solutions. But this growth faces a big problem. Why? It is because there are not enough skilled IT professionals in the country.
A recent report says that about 80% of UK businesses cannot find the IT talent they need. This problem is hitting companies of all sizes in many industries like finance, healthcare, retail, and manufacturing. The main reason is that technology is moving too fast. New tools like artificial intelligence, machine learning, and cloud computing are spreading quickly, but there are not enough skilled people to handle them.
The same report found that 42% of UK IT leaders believe the skills shortage is driven by the growing complexity of technology. Which means they think that the usage of these tools and technology is tricky and complicated. However, on the other side, many employers feel that training institutions are not keeping up, and graduates often lack the practical skills needed to succeed in entry-level roles. This leaves teams overstretched and projects delayed.
Moreover, the competition for experienced tech talent is also adding great value to the shortage. Larger companies are able to attract skilled professionals with higher salaries and broader benefits. This is making it difficult for smaller firms to compete. This has made it even harder for many businesses to fill urgent or specialised positions.
Let’s not debate on what is gone or what is going on. Let’s buzz on what could be done to make betterment. Companies need more than just job ads or agency support. They need structured recruitment models that improve outcomes, like collaborating with MSPs. It can help employers access wider talent networks. It will also help them in managing end-to-end hiring and rely on measurable results through clear recruitment workflows and metrics. The tech talent shortage in the UK is one of the major issues. And we can fix it only by implementing the right strategy.
How MSPs Help Solve Talent Shortages
If you are still not clear about how MSPs can solve talent shortages, then continue reading this section.
MSPs help solve tech talent shortages by setting up clear workflows and using data to manage hiring from start to finish. How? By connecting the employers with multiple staffing suppliers, standardise how candidates are submitted, and make sure every stage of hiring is tracked and optimised.
For further clarity, here’s how MSP IT hiring supports UK businesses facing the 2025 skills gap:
- One central hiring workflow: MSPs replace scattered, inconsistent recruitment efforts with a well-defined process that covers every step, from job requisition to onboarding.
- Supplier performance tracking: MSPs use Key Performance Indicators (KPIs) to measure how well talent vendors are performing. This includes response time, candidate quality, and offer acceptance rates.
- Lower hiring costs: MSPs cut down the cost of hiring by finding better ways to plan and remove waste in the process.
- Faster onboarding: They make the joining process quicker by following clear steps, handling contracts, and checking compliance. This helps new hires start work faster.
- Clear reports and tracking: Employers get live dashboards that show open jobs, how long hiring takes, progress at each stage, and budget use. This makes decisions easier and reduces delays.
This structured approach is helpful during periods of high demand, like now, when there’s a high talent shortage in the UK. Moreover, if you want to see how this works in action, explore Fortray’s Recruitment Services and how we support end-to-end hiring for tech-focused businesses.
MSP Hiring Workflows: Step-by-Step Breakdown
One of the biggest strengths of MSP IT hiring is its ability to bring structure, speed, and visibility into the recruitment process. Unlike ad hoc hiring or agency-only models, MSPs follow a clear workflow that keeps everything aligned. Here’s how the process works in practice.
- Requisition Management: The hiring process starts with role validation. MSPs work with line managers or internal HR teams to confirm job titles, skill requirements, salary bands, location, preferences, and timelines. Every job order is reviewed against headcount plans and workforce budgets to avoid delays later.
- Multi-Vendor Coordination: MSPs don’t rely on one supplier. They manage a group of approved talent vendors using a Vendor Management System (VMS). This allows the MSP to send the vacancy to multiple agencies at once, track their response rates, and monitor candidate quality. Each vendor is held to performance benchmarks. This includes how fast they submit profiles, how often their candidates are hired, and how well they follow compliance rules. This setup creates competition among suppliers and speeds up delivery.
- Screening, Shortlisting, and Selection: After CVs are received, the MSP checks them using clear and fair methods. This may include skill tests, role matching, and shortlisting based on agreed rules. Candidates are ranked by experience, certificates, and availability. This makes the process faster and reduces bias for hiring managers.
- Onboarding and Compliance: When a candidate is selected, the MSP manages all joining steps. They prepare contracts, get approvals, and confirm start dates with both the candidate and the company. Using a set checklist makes the process quick and avoids mistakes.
- Workforce Reporting: MSPs share updates through dashboards and monthly reports. These reports show key details like time taken to hire, cost per hire, interview-to-offer ratio, offer acceptance rate, and manager feedback. This helps companies spot problems early, follow trends, and plan better for future hiring.
FAQs (Frequently Asked Questions)
A managed service provider is a third-party partner that manages the full recruitment process for businesses, especially for temporary or contract roles. MSPs help reduce hiring time, cost, and admin workload.
MSPs give companies access to broader talent pools. It also streamlines the recruitment process and fills roles faster using standardised workflows and advanced sourcing tools.
MSPs are not just for large firms. Medium and growing businesses also use them, especially when they need to hire multiple candidates or fill difficult tech roles
While MSPs were mostly used for temporary hiring in the past, many, like Fortray, now also help with permanent hiring, especially for tech jobs that are difficult to fill.
MSPs typically manage contingent workforce hiring using multiple staffing vendors. Recruitment Process Outsourcing usually focuses on direct, permanent hiring. They act as an extension of your internal HR.
Fortray combines tech-sector expertise, advanced recruitment technology, and measurable hiring workflows. This makes it easier for companies to overcome talent shortages.
