This is when organizations outsource a particular section of the business. An example could include a  recruitment agency which manages temporary staffing program of an organization. The agency, consists of teams which assist the client (the organization) company with managing and sourcing temporary workers. 

Advantages of a managed service provider

• Provides staff on call around the clock at little extra charge
• Clearly defines the work of IT support by definition in a binding contract
• Can fill in for in-house staff shortages
• Can cover for on premises disasters
• Can include data backup management to avert data loss
• Can be scalable, adding on extra resources incrementally or temporarily
• Removes the danger of a company being held up by industrial action
• Reduces the problem of companies competing for scarce qualified IT experts, driving up wages