Managed Service Provider or MSP is a concept of companies that provide services to businesses and/or end-users as an alternative for in-house employees.
Many online definitions neglect the different services that could be provided by a second party and focus solely on IT Service Providers as MSPs. In most cases, MSPs remotely monitor and manage their projects to cut expenses. Someone can look at an MSP concept as resource timeshare.
For example, Mike is a medical doctor that owns his office. To maintain his IT, Mike needs, at least, two technicians. Those technicians need human resources to manage hiring, training, and payroll. On the top that, those technicians need equipment to perform their job. By doing the math, it may cost Mike an average annual cost of $200k for this project knowing that Mike does not need those technicians all the time, he just need them to install and maintain equipment when needed. An MSP X can perform the same job for a fixed annual price of $50k. MSP X can monitor Mike’s equipment remotely, and when needed, a technician can be available to perform the job. In this case, the two technicians can still cost $200k annually but they are shared with 5-6 different businesses.