What Is a Managed Service Provider?

A plain explanation of managed service providers and managed IT services, with examples, what they do day to day, and what to expect in the contract.

By the ERS IT Solutions team Updated 28 October 2026 6 min read

A managed service provider (MSP) is a company that runs and supports another business's IT for a regular fee. It looks after computers, servers, networks, cloud services, security and user support, usually remotely, and takes responsibility for keeping them working rather than waiting to be called. ERS IT Solutions has been an IT provider in Ireland since 1983 and delivers managed IT services from Blanchardstown, Dublin 15.

What is a managed service provider?

A managed service provider is an outside company that takes ongoing responsibility for part or all of your IT under a contract with agreed service levels. EU law uses a close definition: under the NIS2 Directive, a managed service provider provides services for installing, managing, operating or maintaining ICT products, networks, infrastructure and applications, on the customer's premises or remotely.

Finland's national cyber security centre quotes the same Article 6(39) definition in its own guidance. The point for a business owner is simple: an MSP does not just answer the phone, it runs your systems.

What does MSP stand for, and what is an MSP provider?

MSP stands for managed service provider. People also say "MSP provider", "managed services provider" or "IT managed service provider" for the same thing. In IT, it means a company that manages your technology for a monthly fee. A managed security service provider (MSSP) is an MSP that focuses on cyber security monitoring and response.

What are managed IT services?

Managed IT services are the ongoing tasks an MSP carries out to keep your IT running and secure: monitoring, patching, helpdesk, backup, security, network management and planning. They are delivered continuously for a fixed monthly fee, instead of being bought one job at a time. "Managed services in IT" and "managed IT services" mean the same thing.

What does a managed service provider do day to day?

On a normal day, an MSP watches alerts from your systems, applies updates, answers staff tickets, sets up new starters, removes leavers, checks backups ran and fixes faults before people notice. Over a month it reports on what it did, flags risks and plans upgrades. It is the work an internal IT department would do, delivered by a team.

A typical week of MSP work for a 25 person office might include:

  • Fixing a laptop that will not connect to the VPN.
  • Setting up a new starter's account, laptop and phone.
  • Removing a leaver's access the same day they go.
  • Applying the monthly Microsoft security updates.
  • Replacing a failing disk flagged by monitoring.
  • Reviewing a suspicious sign-in alert on a Microsoft 365 account.
  • Confirming last night's backups completed.

What are MSP services? Examples of managed IT services

Most MSPs offer a core set of services and add specialist ones on top. Common examples:

ServiceWhat it covers
Helpdesk and end-user supportPhone, email and portal support for staff
Monitoring and maintenanceAlerts, patching, health checks
Network managementFirewalls, switches, Wi-Fi, VPN
Cloud and Microsoft 365Setup, licensing, security settings
Cyber securityEndpoint protection, email security, monitoring
Backup and disaster recoveryAutomated backups, tested restores
IT strategyRoadmaps, budgets, upgrade planning

ERS offers all of these as part of managed IT services, including helpdesk, network management, backup and disaster recovery and managed cyber security.

What is IT support, what does it mean, and what does an IT services company do?

The meaning of IT support is simple: help for people using technology: fixing faults, answering questions and setting up equipment. An IT services company provides IT support and usually more, such as network installation, cloud migrations, security and software. An MSP is an IT services company that sells that work as an ongoing managed service rather than one job at a time.

"IT services" covers anything a business buys to run its technology. "IT support services" is the helpdesk end of that. "IT services and consulting" (its meaning in most proposals) adds advice and project work, such as planning a cloud move. ERS does all three, and also builds custom software through our software development services.

Managed IT services vs break-fix IT support

Break-fix IT support only acts when you report a problem, and you pay per job or per hour. Managed IT services are continuous: the provider monitors and maintains your systems to stop problems happening, for a fixed fee. Break-fix suits very small setups with little to go wrong. Managed services suit any business where downtime costs money.

Break-fixManaged IT
When work happensAfter something breaksEvery day, plus when something breaks
PaymentPer call or hourFixed monthly fee
MonitoringNoneContinuous
PatchingWhen someone remembersScheduled
Provider's incentiveMore faults, more billingFewer faults, less work

What should a managed IT services contract and SLA include?

An MSP contract should list what is covered and excluded, the users and devices in scope, support hours, response and resolution targets by priority, escalation contacts, reporting, price and review terms, data protection terms, contract length and an exit process. There is no single legal standard for response times, so compare what each provider commits to in writing.

As a reference point, ERS managed IT clients get an average call response of 15 minutes, 98% of issues solved within 30 minutes and an average on-site response of 2 hours. For a clause-by-clause checklist, see our IT support contract and SLA guide.

Are managed service providers regulated in Ireland?

There is no licence needed to run an MSP in Ireland, but data protection law already applies. If the MSP can access personal data, it is a processor under GDPR Article 28 and needs a written contract with you. NIS2 lists managed service providers as an in-scope sector, but Ireland's transposition law was not yet before the Oireachtas as of 28 October 2026.

The NIS2 Directive lists "ICT service management (business-to-business)", covering managed service providers and managed security service providers, in its Annex I. Ireland's NCSC NIS2 page explains that the registration and incident reporting portals will open once the legislation is implemented.

How does ERS work as a managed service provider?

ERS IT Solutions starts every managed IT service with a thorough onboarding and site audit, then provides helpdesk, monitoring, patching, security and planning from our Dublin 15 base, with 24/7 monitoring 365 days a year. ERS was founded in 1983 supporting the financial services sector and now supports businesses across Ireland.

For clients such as PPI, ERS runs the service under the ERS x360 Managed Services Framework, with 24/7/365 monitoring. If you are comparing providers, read how to choose an IT provider in Ireland, or call us on 01 885 9500.

Common questions

Is an MSP the same as outsourced IT?

An MSP is one form of outsourced IT. Outsourced IT can be anything from a one-off contractor to a full IT department. An MSP is the version where the provider takes ongoing responsibility for running your systems for a monthly fee, with service levels. You can outsource all your IT to an MSP, or only part of it through co-managed IT.

Do small businesses need a managed service provider?

Most small businesses benefit from one, because they rarely have the budget for a full-time IT person with security, network and cloud skills. An MSP gives a small team access to all of that for a monthly fee. ERS supports small and growing businesses across Ireland. See managed IT for growing businesses.

What is the difference between an MSP and a cloud provider?

A cloud provider, such as Microsoft or Amazon, hosts the platform: servers, storage and software in their data centres. An MSP sets up, secures and supports what you run on that platform, plus your laptops, network and users. You usually need both. ERS is a Microsoft Cloud Solution Provider and also manages Azure, AWS and hybrid environments.

How much does a managed service provider cost?

Published Irish prices start from around €50 per user per month, and fully managed packages for 10 to 20 staff generally run €350 to €900 a month. The final figure depends on scope, security tools and hours covered. See managed IT services cost in Ireland for sources and a simple way to estimate your own cost.

Questions about managed IT services? Talk to the ERS team.

Unit 5, Block 8, Blanchardstown Corporate Park, Dublin 15. Supporting Irish organisations since 1983.