Factors of production play an important role in the advancement of a business. The strength of a business depends upon its human resource. Human resource is though considered the important key for any business but the technological development has changes the scenario in today’s world.

As the businesses are becoming more virtual or online day by day so some employers are also moving towards getting some part of their businesses done from online sources or from the third party. The major reason of doing this thing is to cut the cost in a way that it couldn’t affect the profitability and operations of business. As we all knows very well that companies usually have to invest a huge amount in hiring process. The hiring includes time consuming processes from short listing among the huge number of candidates to their test, interviews, hiring and finally their training. So it wastes lots of time, energies and cost too. The main problem comes when the company gets the big project for once and it has to complete it in a limited time period. At that time companies used to look at the most reliable and cost effective way rather than hiring new people and trained them. The one option that could be taken in this regard is to ask the employees that either they are able to serve the company as part time workers or not. If the workers get agreed to the management’s proposal then it would be the best option for management rather than hiring new staff. But if the workers don’t want to avail that opportunity then the management has to think something different to meet their business requirement.

To shed down the load of extra work, management can hire a third party. Work can be assigned to any one, either to a physical company or the virtual one, depending upon the reliability in satisfaction of needs. Managed service provider is the name used for third party providing service. The managed service provider serves various companies at a time and manages their work properly in addition to earn income. They charge the served companies on the basis of monthly schedules. Their income is based on the tasks assigned by different companies in order to provide the service to them

The basic work of managed service providers includes the maintenance of the old data, keeping the backups and the IT related services like security protections, web designing etc. There are a lot of work related to IT and they work for different companies at a time.

Having enough expertise in the related area, these service providers are becoming the IT departments of some companies, as this leads the companies to minimize the costs of making its own IT department. Hence companies hired them as their IT department to mange whole IT needs efficiently.

There are certain advantages of managed services provider that make it more commonly used service rather than recruitment of new employees. The most important benefit is that the companies who don’t want to establish a new IT setup due to space or cost constraints could easily get their work done by the managed services provider. Secondly, it’s a cost effective and time saving process of hiring services provider instead of hiring new employees. Managed services provider can provide all type of IT related guidance and solutions that one or two employees might not be able to handle with at a single time. The overall benefit of managed service provider is that they will always provided you the best and timely work because they have to maintain their trust relation with all companies as it’s the only way of their survival.

Some companies are reluctant in using the new virtual methods but mostly are switching to keep pace with the modern cost efficient and time saving techniques. With all the popularity that managed services provider have gained in a short period of time, it can be said that their future will make them approach the systems of those companies also, which are reluctant these days.