What is an "MSP" in business? The abbreviation "MSP" stands for "managed service provider." An MSP is a third-party company, such as TRS Workforce Solutions that helps medium and large sized organisations with one or more essential functions or requirements of a business such as recruitment, staffing, payroll, compliance, HR, logistics, administration, technology and more.
Key takeaways:
- The business abbreviation "MSP" in business stands for "Managed Service Provider."
- As of 2023, there are more than 150,000 MSPs in the market (as reported by MSPAlliance.com).
- Managed service companies emerged in the 1990s, with application service providers (ASPs) providing remote assistance, B2B services, and infrastructure (or IT activities).
- The global managed services market was estimated to be $299 billion in 2023 according to Grandviewresearch.com and is expected to rise significantly in the next seven years.
What is an "MSP" in business?
Managed services are the outsourcing of one or more functions that keep a business running. These needs are usually essential processes and functions that improve operations and reduce budgetary expenses.
This could include staffing, IT essential needs, and much more. Within each MSP focus area could be a wide range of offerings that are designed to help their target vertical (healthcare, finance, manufacturing, and other IT) with their essential needs.
History of MSPs
Managed service providers began in the 1990s with the emergence of application service providers (ASPs) who helped with remote support and infrastructure (or IT functions). Which still dominates much of the MSP market today.
Types of MSPs
Here are the various types of MSPs and what types of functions they provide assistance with:
B2B:
- Supply chain management
- Internet support
- Videoconferencing
- Statement of Work
- Vendor Management Systems
Information Services:
- Software authentication
- IT system management
- Data storage
- Data backup
- Cloud infrastructure
Supply Chain Management:
- Planning, monitoring, and control
- Sourcing and procurement
- Logistics and distribution
Transportation:
- Transportation planning
- Process automation
- Process execution
Marketing:
- Strategy and planning
- Integrated marketing
- Graphic design (copywriting, PPC, social media, SEO)
Media:
- Systems operation
- Support service
- Broadcast management
Water:
- Water testing
- Smart irrigation monitoring and support
Power:
- Advanced metering
- Smart grid deployments
More MSP resources
Aligning Managed Services to Projects
Managed Services Pre-Insights
Procurement 4.0
