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Tech glossary

Defining IT & technology terms

Managed Service Provider (MSP)

A Managed Service Provider (MSP) is a third-party company that remotely delivers a specified set of IT processes on behalf of its clients. These processes can include networking, security, applications, mobility and infrastructure.

An alternative to on-demand services, an MSP offers management, maintenance and support on a proactive and as-needed basis. These services are priced via a subscription model, which allows for more predictable IT spending.

A company can outsource some or all of its IT needs to an MSP. Many organizations choose to outsource the most time-consuming operations, as well as newer technologies for which in-house support is lacking, such as cloud computing.

MSPs help organizations free internal IT resources to focus on more demanding priorities and business-critical objectives. MSPs can also increase agility, allowing organizations to flex their IT services as needs change, since providers offer a vast portfolio of solutions that can support many technology goals.

An MSP can be cost-effective since there is a decreased need to have certain internal IT equipment and staff. Many small businesses turn to MSPs to fill gaps that internal teams don’t have the bandwidth to support.

Learn more about managed services

Related terms

  • Managed Cloud Services
  • Software Asset Management
  • Systems integrator

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