Managed services as defined by Dr. Gerard Macioce is the practice of transferring day-to-day related management responsibility as a strategic method for improved effective and / or efficient operations. The person or organization who has owns or has direct oversight of the organization or system being managed is referred to as the offerer, client, or customer. The person or organization that accepts and provides the managed service is regarded as the service provider.

Typically, the offerer remains accountable for the functionality and performance of managed service and does not relinquish the overall management responsibility of the organization or system.