Use of 3rd Party Service Providers

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A third party service provider is generally defined as an external person or company who provides a service or technology as part of a contract. In the IT space, a third-party service provider typically provides a technology used to store, process, and/or transmit data that enhances an organization’s operational efficiency..

What is an example of a third-party service provider?

Since any “as-a-Service” technology solution is a third-party service provider, nearly every organization uses at least one, if not more.


Software-as-a-Service Providers (SaaS)

Software-as-a-service is the most commonly recognized third-party service  provider because people use them at work and home. A SaaS provider offers an application delivered through the internet and often uses a subscription pricing model. One way to think about SaaS services is that they are like rental furniture; you only get the pieces you need for the length of time you want them.


Some typical SaaS service providers include:

  • Google Suite
  • O365
  • GoToMeeting
  • Salesforce

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