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A vertical service provider (VSP) is an IT service provider that provides specialized products, services and solutions in a specific business niche/domain. A VSP delivers IT services and solutions that are purposely designed, built, delivered and addressed for a vertical market.
A VSP specializes in one or limited business verticals, ranging from banking, health and education to the government sector. VSP services may be based on hardware, software, networks, the cloud or a combination of each. Generally, a VSP employs business domain experts to build vertical market solutions, inculcating processes, methodologies and an overall business framework.
A VSP solution is favored over a general IT service provider for its mastery of the business domain and broad range of products and services. Unlike a general service provider, a VSP provides specialized and tailored products and services.