Third-party service provider is a company that provides services to another company. The services may be in the form of outsourcing, or it could be an internal employee who is contracted out to provide extra support. Third-party service providers are not employees of the company they work for, but they do provide assistance to it in some way.
What Does a Third-Party Service Provider Do?
A third party service provider can be hired to perform many different types of jobs, including:
Outsourcing: When a business decides that it needs additional help with certain tasks, it can outsource those tasks to other companies. For example, if a company needs software development but doesn't have the time or resources to develop this software internally, it might hire an outside company to do so instead. Outsourcing allows businesses to focus on their core strengths while still getting everything else done as well.
Contracting: Some companies will contract out specific projects or ongoing work from one department to another department within their own organization. For example, if there's an opportunity for efficiency gains by having two departments share resources or collaborate more closely together, then this can be done through contracting rather than hiring new employees outright who will require training and possibly benefits packages.