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External Services Provider (ESP)

An external services provider is an external company that provides services to a business. These services may include a variety of functions, including supply, consulting, and financial management. There can be tension for businesses who opt for ESPs. Businesses must debate when to keep a service in-house versus using an external services provider. In some cases, an external services provider is only available by outsourcing the work.

What Small and Midsize Businesses Need to Know About External Services Provider (ESP)

Small businesses may find that they need external service providers. They may not have the time or expertise to develop the necessary services an external services provider can give them. This process is relatively frequent when using expert or expensive services, such as accounting or human resources. An ESP can allow a business to access this talent without expanding its payroll.

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