Service provider

An organisation that offers other businesses with services such as consulting, legal, real estate, communications, storage, and processing is referred to as a service provider (SP). These types of services are common. In most cases, a service provider is a third-party or an outsourced supplier. Nevertheless, a service provider could also be a sub-unit of the company that it services. Internet service providers (ISPs), telephone service providers (TSPs), application service providers (ASPs), and storage service providers (SSPs) are some examples of these types of businesses (ISPs). The word "service bureau" is one that has a longer history.

When comparing various service providers, IT experts will often classify them as either type I, type II, or type III. While ITIL and the Telecommunications Act of 1996 describe each service type in further detail, the IT industry generally accepts the following three categories of services.

• Type I: Internal service provider
• Type II: Shared service provider
• Type III: External service provider

Type III SPs are capable of being referred to as external service providers (ESPs) as a result of their provision of IT services to customers from the outside of their organisation. These services can range from the complete outsourcing of an IT organisation or service via managed services or MSPs (managed service providers) to the limited delivery of product features via ASPs (application service providers).