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.

Today the outsourcing of businesses is becoming very common and preferable by the businessmen. It is done for being cost efficient in proper way. Companies usually incur huge costs in recruiting the staff. Recruitment is a long procedure having being divide in certain steps i.e. short listing of candidates, walk in interviews, selection committee, hiring of employees and at last their training sessions. This long procedure can affect the business in any possible negative way. Time limitation in completing a huge task instantly is the big challenge for a company. The company faces a problem when there is small time limit for completing a big project. The best thing at this stage is to discover a best alternative for performing the required task timely rather than striking head in useless and unreliable procedures. To ask the pet employees to work as part timers can be a solution for the company. And if they agree, there could not be any other best alternative than this. On the contrary; company would have to go for another way if workers disagree.

Presently the solution for this problem is hiring a reliable outer party for the extra work. This need can be satisfied by any online or real source. Another name used for this out source is managed services provider. Managed service provider has the function to manage the work of different companies in order to take benefit and manage their business. Third parties provide monthly services against the charges. Shortly speaking managed service providers get the projects of service provision from other companies and get profit in return.

IT related problems can be solved in a best way by using managed service provider. If we say that managed service provider meant to be for IT assistance, then it will not a false statement because most of the companies of recent world are transferring their IT functions to them by considering them a reliable source.

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.

Managed service provider has some advantages that help him to replace the idea of hiring new employees with its services. It is the best solution to cope up with the limitations of cost, time and space that instead of opening a new IT department get IT service done by any service provider. This method can prove to be the cost efficient and helps the company in saving time. It is basically a replacement of an employee by a whole organized system with providing deep guidance in case of any query. Their survival needs the trust based relationship with their customer companies, in order to maintain that customer and retain those companies, they offer highly productive, reliable and time saving work output.

Although some companies still prefer to have in-house IT departments but most of them are moving towards getting the third party’s services to make their outputs quicker and cheaper. By looking its advantages it could be said easily that in future there will be very difficult to find even a single company that has their own IT department in their setup.