MSP
Definition
MSP stands for Managed Service Provider. It refers to a third-party company that remotely manages a client’s IT infrastructure, networks, applications, or end-user systems on a subscription or contract basis. MSPs allow businesses to outsource IT functions for efficiency, cost savings, and access to specialist expertise.
For example, a small business may hire an MSP to handle cybersecurity monitoring, cloud backups, and helpdesk support rather than maintaining a full in-house IT team.
Advanced
MSPs typically offer services such as network monitoring, data security, disaster recovery, cloud migration, and compliance management. They use remote monitoring and management (RMM) tools to proactively identify and resolve issues. Service delivery is usually defined by Service Level Agreements (SLAs) that set performance standards.
Advanced MSPs adopt automation, AI-driven threat detection, and predictive analytics to improve service efficiency. They often integrate with ITSM platforms, support hybrid cloud environments, and assist with regulatory compliance such as GDPR, HIPAA, or ISO standards. Strategic MSP partnerships also extend into co-managed IT models, where in-house teams collaborate with external providers.
Why it matters
Use cases
Metrics
Issues
Example
A healthcare provider partners with an MSP to manage data security and ensure compliance with patient privacy regulations. The MSP provides 24/7 monitoring, encrypted backups, and regular compliance audits, reducing risk and ensuring continuity of operations.