There are many factors necessary for a successful business like a proper infrastructure, investment and the most important is human resource. This is the necessary element of any kind of business either new or old. HR is the equity of every business but the upcoming technologies and the modernism is going to change the way of hiring and selection of the human resource. Human resource plays an important role without which you cannot run the business properly.

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.

As there is a trend of online companies who are taking the responsibilities of doing your work as the third party so they are called the managed service providers. Their work is to work with many companies simultaneously and they get profit of it. They charge the companies for the work they do on monthly basis. Their basic work is to get the projects and earn money and profits.

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.

The services provided by managed service providers are supplied at lower cost as compared to the cost involved in the hiring of new employees so they are already trained people who are providing us this IT related services. This is very effective way to reduce the cost and time. This step towards the third party is taken mostly by modern companies.

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.

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.