Who is Service Provider?

Last updated: 2025-08-06

A service provider is an individual or company that delivers a service to its customers and ensures its quality and performance. A service provider can be:

  • Our own business offering services to clients, whether other businesses (B2B) or direct consumers (B2C)
  • One of our internal departments providing support or services within the company
  • An external company from which we purchase services
who is service provider

Vendor as Service Provider

  • Our company is the client receiving services (service customer)
  • We purchase services from third-party vendors
  • These services are always part of the supply chain

Our Company as Service Provider

  • A customer is another business or individual in the market to whom we provide and sell our services
  • The service customer is always external to our company

Organizational Unit as Service Provider

  • The service is provided to internal customers within the company
  • Service recipients are other departments or employees

Chain of Service Providers

Many businesses work with multiple service providers connected in a chain to deliver a complete service. In this setup, each provider handles a specific part of the service, while the main provider manages the overall quality and reliability for the customer. 

  • The chain of service providers involves coordinating both external and internal vendors to provide a smooth, end-to-end customer experience.
  • The primary service provider acts as the guarantor, overseeing the entire chain to ensure every provider meets their responsibilities and maintains service standards.
  • This model helps businesses tap into specialized skills, reduce costs, and focus on their core operations while ensuring top-quality service delivery. 

Using the term "chain of service providers" with the main provider as the guarantor makes it clearer that there is a hierarchy, where the lead provider ensures the overall service quality and reliability.

How Does Aptien Help Manage Services in Your Business?

1. Managing Vendors and Outsourced Services

2. Managing IT and Internal Business Services