Managed services
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Managed services is the practice of transferring day-to-day related management responsibility as a strategic method for improved effective and efficient operations. The person or organization who owns or has direct oversight of the organization or system being managed is referred to as the offer-er, client, or customer. The person or organization that accepts and provides the managed service is regarded as the service provider.
Typically, the offer-er remains accountable for the functionality and performance of managed service and does not relinquish the overall management responsibility of the organization or system.
Common managed services
Common managed services include but are not limited to:
- Transportation
- Postage
- Water
- Power
- Information Services
- Backup
- Storage
- Security
- 24/7/365 Monitoring
- Network Management
- User Management
- Systems Management
- Software - Production Support and maintenance
- Supply Chain Information Services
- Communication Services
- Internet (provided by an Internet service provider)
- Telephone (typically provided by a telephone company)
- Media
- Supply Chain Management Services
Managed services provider
A managed services provider (MSP), is typically an information technology (IT) services provider, who manages and assumes responsibility for providing a defined set of services to their clients either proactively or as they (not the client) determine that the services are needed. Most MSPs bill a flat or near-fixed monthly fee, which benefits their clients by providing them with predictable IT support costs.
In General
The business model behind managed services was commonplace among enterprise level companies, provided by large IT support companies such as the former company EDS (Electronic Data Systems), now owned by HP and called HP Enterprise Services; IBM Global Technology Services, Cognizant, TCS and Centerbeam. The model was later adapted to fit small to medium sized companies by the value-added reseller (VAR) community as their existing model of reselling hardware and software continually provided lower profit margins.