We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Networking

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What are Managed Service Providers?

By David White
Updated: May 16, 2024

A managed service provider supplies businesses with information technology needs via the Internet. These needs are typically network monitoring, remote data backup, and network security, but can also include other more new age technology services such as Virtual Private Networks and Voice Over Internet Protocol services. A business will contract with a managed service provider to fill certain needs that are met more cost effectively by outsourcing than by purchasing and supporting equipment in-house. This sort of arrangement makes good economic sense for both small and large companies, especially since managed service providers specialize in technologies that all businesses might not have the resources to support.

For example, a company that specializes in remote data backup does this all the time, all day long, for clients near and far. This company will have all the latest equipment and all the latest encryption techniques and protocols, as well as a vested interest in making sure that its services are top-notch. Because security is its focus, this company has security on the front burner all the time. The company that hires this managed service provider to produce remote data backups, on the other hand, will necessarily have other concerns that struggle for notice in the company's daily business.

Outsourcing other parts of a company's business makes economic and technological sense as well, especially if it's something like Voice Over Internet Protocol (VoIP), which is continually updated with newer and more powerful functionality. Virtual Private Networks (VPNs) also necessarily have security protocols that are nearly always rotating or changing to provide protection against hackers. Many companies find it easier to take advantage of a VPN provided by a managed service provider; in this way, they spend only money, not time and money.

In addition to Internet telephony, other kinds of telephone services can be outsourced to a managed service provider. For example, a large catalog company that boasts a large volume of telephone sales and service might opt to hire a managed service provider as a call center. This is general practice nowadays, even if you dial 411. The catalog company might even hire a different managed service provider to process all of the orders it receives. Outsourcing is the name of the game here in more ways than one. The general idea behind a managed service provider is using Internet-related procedures to give companies things that they can't easily or inexpensively get for themselves.

EasyTechJunkie is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
By SZapper — On Jun 19, 2011

@indemnifyme - The article is right, managed IT services are really the way to go these days. The advent of cloud computing and reliable networks has made it easier and easier to provide services over the internet.

There is one small drawback though: if the internet goes down, the company purchasing the services is totally out of luck!

By indemnifyme — On Jun 17, 2011

My company uses managed network services providers for a VPN phone system. The system is really amazing and every time the technology changes the company automatically updates our system. We don't have to worry about anything except knowing how to use the actual physical phone on our desks!

By MrMoody — On Jun 17, 2011

My beef is with companies that outsource their call centers overseas. I am sure it makes perfect economic sense, and no disrespect intended for the overseas workers whom I believe are hard workers, but sometimes it’s difficult to understand their English.

If I talk to someone with a really heavy accent, then I have to ask them to repeat themselves several times before I can understand them. It can lead to a very frustrating customer service experience.

Some experiences are better than others, and again, I’m not knocking their work ethic. I just think that American companies would better serve their customers if they keep their call centers in the United States, even if they have to outsource other operations.

Share
https://www.easytechjunkie.com/what-are-managed-service-providers.htm
EasyTechJunkie, in your inbox

Our latest articles, guides, and more, delivered daily.

EasyTechJunkie, in your inbox

Our latest articles, guides, and more, delivered daily.