10/08/2026
46% of enterprises are managing 6 or more external workforce vendors. 17% are managing 10 or more.
Almost none of them designed it that way.
The current workforce model at most organizations was not designed. It accumulated. One urgent requisition, one specialized initiative, one regional expansion at a time. And the costs of that accumulation are showing up in places most executives are not measuring: administrative drag at the hiring manager level, rate confusion across comparable roles, context loss (because no vendor knows you deeply), compliance exposure spread across 10+ relationships.
The MSP response consolidates vendor management but often introduces different problems: a race-to-submit dynamic that produces quantity over quality, a barrier between hiring managers and vendors, and a margin-dictation problem that breaks specialist economics.
The answer is not fewer vendors in total. It is the right few per category.
Full breakdown of why vendor sprawl happens, what it costs, and what a designed workforce model actually looks like -
46% of enterprises manage six or more workforce vendors. The hidden costs of vendor sprawl, why MSPs often make it worse, and what a designed model looks like.