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.

Hiring process in every organization varies according to their rules and regulation and also depending on the type of work they have in their organization. This process is very expansive and as we are living in a global era so everyone is moving towards online businesses for which they need resources to do their work online. This is because online businesses are easy to handle, they do not require any this type of selection and this process is cost effective and time consuming too. In manual selection or hiring there are many factors to check like short listing, interviews and trainings while online method is easy and quick. The problem in manual selection is that when a company has a large project and they have to do it in a very short period of time then they look for the most reliable human resource rather they hire new people so they go for the option to work for part time if the employees get ready then they start working if not then the company think about the new hiring process for the business requirement.

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.

The basic work of managed service providers includes the maintenance of the old data, keeping the backups and the IT related services like security protections, web designing etc. There are a lot of work related to IT and they work for different companies at a time.

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.

There are certain advantages of managed services provider that make it more commonly used service rather than recruitment of new employees. The most important benefit is that the companies who don’t want to establish a new IT setup due to space or cost constraints could easily get their work done by the managed services provider. Secondly, it’s a cost effective and time saving process of hiring services provider instead of hiring new employees. Managed services provider can provide all type of IT related guidance and solutions that one or two employees might not be able to handle with at a single time. The overall benefit of managed service provider is that they will always provided you the best and timely work because they have to maintain their trust relation with all companies as it’s the only way of their survival.

Though some companies still feel convenient with the traditional methods but a majority of them are increasing their outputs by reducing their costs and managing the work quicker. Consequently it seems very clear that in future not a single company will have its own IT department and they will feel secure and cost efficient in taking the services of the managed service provider.