The progress of a business depends upon the capital, land, machinery, labor and their proper placement. Human resource is considered as the most significant factor in any business set-up. The modern inventions have reduced the recruitment of the human resource, as it replaces the humans with machines and introduce new techniques to run the business efficiently.

Getting done your business by some outer source is in common practice at present and is due to the online facility given by internet web for being its part. If some part of the business is done by some online source, it will reduce the cost dramatically without compromising the quality and turnover. Recruitment procedure adds high costs to the businesses. The hiring and the training of the individuals for a certain job make the recruitment process hectic and time consuming. It is a costly procedure that leads to the wastage of the production factors and time resource as well. At that time, company needs to find a cost effective solution instead of recruiting and training the new employees. One alternative could be to get the company’s original workers’ willingness for extended job timings and work. If the workers show their consent to the management, it would be profitable for the company in all aspects i.e. the cost minimization, quality building, and standard stability. What if the workers do not show willingness? The company has to find another solution.

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

Usually the IT related services are provided by the managed service providers and assist the companies in managing their IT related problems and in addition to the new ways of management they helps to expand the business on web

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 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.

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.