Managed services is the practice of outsourcing the responsibility for maintaining, and anticipating need for, a range of processes and functions, ostensibly for the purpose of improved operations and reduced budgetary expenditures through the reduction of directly-employed staff.

It is an alternative to the break/fix or on-demand outsourcing model where the service provider performs on-demand services and bills the customer only for the work done.

Under this subscription model, the client or customer is the entity that owns or has direct oversight of the organization or system being managed, whereas the managed services provider (MSP) is the service provider delivering the managed services.