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.

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.

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.

Companies realized after analysis of expenses incurred by company’s IT department and the outer service that the costs are minimized in hiring the services from outside. Hiring them as the IT department save the company from unnecessary wastage of time and cost

There are many pros of having managed service providers and one of the most important benefit is that the companies who can’t afford or have the time and space constraints to have some new setup for the IT department they usually get the benefit of it. Then this is very cost effective process. This can provide all sort of solutions related to IT department.

Though this is really a good way to reduce your cost and work burden but still there are companies who are not following this strategy because they are not that comfortable or flexible with this. Looking into the benefits this seems to be very successful step for future companies.