Managed IT Services is the practice of outsourcing day-to-day IT support, management and compliance responsibilities and functions as a strategic method for improving operations and cutting expenses. This can include outsourcing HR-activities, production support and lifecycle build/maintenance activities. The person or organization that owns or has direct oversight of the organization or system being managed is referred to as the offeror, client, or customer. The person or organization that accepts and provides the managed service is regarded as the service provider or MSP.
Typically, the offeror remains accountable for the functionality and performance of the managed service and does not relinquish the overall management control and responsibility of the organization or system.