4 Differences Between Managed Services and Outsourcing

January 14, 2021

Interested in Managed IT Services? Here are 4 differences between Managed Services and Outsourcing.

Managed IT Services help you get the support you need for your business. Outsourcing certain tasks can do the same, but these two practices are not the same thing. Both involve receiving services from a third-party source for your business but determining which of the two options is better for you can make your decision-making process easier. Here are four differences between managed services and outsourcing:

1.       Managed Services are More Specialized than Outsourcing

When you outsource your IT services, all possible IT-related needs are handed over to a specific company that provides your business with an onsite staff person who serves as the messenger for both sides. Essentially, this person is a liaison between the outsourcing company and your business. The managed IT services model gives you something that is more specialized. If you hire a managed services provider, it takes care of certain IT operations you are unable or do not want to handle on your own. They work hand-in-hand or fully replace with your existing IT team and work to keep things operating smoothly. The services they provide are customized to your needs.

2.       Managed Services are a Longer-Term Proposition

Outsourcing tends to be done on a short-term basis when you need help for a specific issue, whereas businesses that rely on managed services tend to view it as a permanent solution. Managed IT Services can work with your existing infrastructure and become a part of your team, while outsourcing means you are bringing in someone to handle a specific issue on a temporary basis.

3.       Working with a Managed Services Provider Enables You to Be Aware of the Costs Upfront

Perhaps the biggest difference between managed services and outsourcing is how you pay for the services. With managed services, you are aware of the total cost upfront, even if you are purchasing ongoing service. In most cases, there is a monthly fee, and you will know exactly what you will be paying from month to month. With outsourcing, what you pay depends on the deal you make with other companies and individuals and performance pay is typically in question. It is unpredictable and can make it challenging to budget properly.

4.       Managed Services are Focused on Management of Appointed Tasks Using the Right People, Processes, and Tools

Managed IT Services focuses on a holistic approach, while outsourcing focuses on the most efficient deployment of work. For instance, if a company can get higher quality services or something less expensive, they will choose to outsource it.

Is Managed Services Better than Outsourcing? Not necessarily. Both have a place in the modern business world, but managed IT services gives you more options, is cost-efficient, and allows you to work with experienced technicians. Both can provide protection and reduce your risk, but one might work better for your specific circumstances.

If you have any questions or are looking for assistance, please reach out to us at abmis.ca