Managed services is the practice of outsourcing day-to-day management work as a calculated way for improved operations inclusive of Production Support and life cycle build/maintenance activities. The business owner of the company, firm or NGO who has direct oversight of the organization or system being managed is referred to as the client, or customer. The person or organization that manages and provides the service is regarded as the service provider.
A managed services provider (MSP), is usually a services organization or company, who manages and takes liability for managing and handling an agreed set of business operation of their clients. Most service providers usually bill a fixed charge and hourly rate or fixed monthly fee, which profit their clients by providing them with predictable support costs.