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By Sachin Rajgire
A lot of students asked me
what is this MSP (Managed Service Provider) ?????
what is the vendor????
can they work for the vendor?? especially international students? because they are not aware of these.
These vendors are one of that MSP. So any company for example let's take jp morgan's, it's a large company.
So it's going to have two types of vendors.
1. Staffing site
2. MSP (Managed Service Provider)
What is MSP is a managed service provider and staffing vendors??... What is the difference??
Okay so let me first give you an example of who are the staffing vendors for example
- Tech systems
staffing site they only deal with staffing, which means that whenever jp morgan has or any similar large clients and they don't want to hire full time. So sometimes they have a project less say migration for six months or years, so they said we don't want to hire somebody full time. What should we do so they go to the staffing company say can you provide me a resource for six months or a year so these guys only job is to find you, these are what you call body shopping mode. Like they are just shipping the body from here moving to here That's it they don't do any intelligent work, so they find you and they place you and they make some commission of it.
if jp morgan is paying let's say hundred dollars per hour, these guys are gonna pay you seventy dollars per hour and keep that thirty dollars per hour for themselves.
that's why I keep my telling my international students who we help find a job, that it is okay to work for staffing companies, especially the tier one staffing company
These are called tier one and some of these companies actually have a tier 2.
A requirement comes from jb morgan let's say for a developer Staffing vendors (tier 1) cannot find a person they will go to tier 2 vendors so the staffing companies like k-4s or tech systems, themselves have their own vendors.
JP Morgan pays hundred dollars to a staffing company, the Staffing company pays 72 Dollars to a tier 2 company, and the tier 2 company then pays this Employee 50 per hour. this is what we call this is a layered approach.
As a candidate, you want to be JP Morgan, because that way you can keep entire hundred dollars for yourself. Second, the best bet is to be with the staffing companies (tier 1) because you still get decent pay and these graphic numbers are really well-reputed companies. You know you don't want to be at a tier 2 staffing company, because this is where what you call body shop or you're not gonna get paid well.
That's what we call uh this is stuffing and the other type is more organized. It's called MSP which is TCS, Infosys, IBM. What they do is they take a small kind of project from JP Morgan.
For example, JP Morgan says we are building this huge software and we will outsource some part of it. Why would we outsource building and the payment module to Infosys, because they do their job pretty well so JP Morgan keeps a small part of a project to Infosys to handle payment or they can give the entire software to them it depends.
Here the Infosys goes and hires you, so you work full time with Infosys but you're executing JP Morgan's project. It's a bit fixed-price contract. JP Morgan has paid a let's say 10 million dollars to Infosys, here's your 10 million Infosys go and do execute this project.
As a job standard, you can enter Infosys and get hired full-time. Again your best bet is always to be at JP Morgan. If you cannot get through this Infosys(MSP) Should be your second priority.
Companies like Infosys have a lot of projects Like the JPMorgan Project or Marvin Stanley's project. So if one project ends then you can go to another project. So this is definitely a better way of approaching.
This is like a short summary. I will cover deeply in another video that Some of the students have been asking can they do a contract or can they do a w2 contract.