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.

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

IT related problems and needs that are satisfied by the virtual service providers include the old data storage, maintaining the new data, their strong web presence by maintenance of web sites, building strong customer satisfaction features, logo designing and many more same kind of assistance services.

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 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.

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.