Managed services refer to the outsourcing of specific IT functions, such as network management, security, and data backup and recovery. The goal of managed services is to provide a higher level of operational performance and security, as well as to reduce costs and improve efficiency. These services are delivered by a third-party provider, often on a subscription basis, and are designed to take over the day-to-day responsibilities of IT management, freeing up internal IT staff to focus on more strategic initiatives.