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.

The mobility of businesses towards online system is increasing day by day; it includes transferring the whole business setup as an online business or to transfer a part of business to get it done from any other online company. Companies are moving toward virtual businesses not only to save the time but also to reduce the cost that would surely be occurred in hiring new employees. To avoid the long and costly process of hiring most of the companies tends to be online. The hiring process becomes most urgent when any company finds big projects that need a huge number of employees to complete it on time, not only to get profit but to maintain their credibility in the market. In this situation the company can hire their in-house employees for some time as part time workers on additional pay. But the company has to think differently if employees show no interest in working as part time workers.

Now a day the most commonly used way for getting the extra work done is giving the responsibilities to the third party. That third party could be an online company or any real one. That third party is usually known as a managed services provider. Managed services provider works as a third party for other companies, they usually works with lots of companies at a single time to maintain their business as well as to get profit. Managed services provider mainly works on monthly packages and they get the monthly charges from the companies, to which they used to provide their services. More precisely we can say that they generate their income and profit from getting projects from other companies by providing their services 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.

Companies realized after analysis of expenses incurred by company’s IT department and the outer service that the costs are minimized in hiring the services from outside. Hiring them as the IT department save the company from unnecessary wastage of time and cost

Managed service provider is very useful having many benefits like this is very cost effective process for those companies who can’t afford to maintain or even build their separate IT setups and it reduces the cost that would be incurred in hiring new IT staff. Managed service provider will always facilitate you with the best ever and timely IT solutions because they have to maintain their credibility to make more profit.

From the above benefits it is shown that this is a good concept for all type of businesses, either any company follows it or not, and it seems to have growth in near future.