Managed Services Vs Outsourcing: What’s The Difference?

Managed Services Vs Outsourcing

When your in-house team can’t handle an influx of work, it’s time to consider delegating some of their responsibilities to another company. That’s when you may face the choice between managed services and outsourcing.

Managed Services Vs Outsourcing

Many people use these terms interchangeably. What they mean is giving over some of the tasks to a third-party service provider. In reality, there are several differences between the two approaches.

So if you are thinking about delegating a few of your tasks, you need to learn your options.

What are Managed Services?

Managed service providers are companies that you outsource a variety of tasks to. Essentially, they become your partners. For example, Managed IT service providers can offer cybersecurity services, disaster recovery planning, IT monitoring, IT employee training, and much more. They handle all of your IT needs, instead of focusing on particular projects. However, the break/fix it model can be a part of the services as well.

Managed service providers take the time to get to know your company’s needs and requirements so they can offer proactive advice. They work out a plan of preventive measures and work toward improving the company’s bottom line.

According to experts from Symple, Ottawa Managed IT Services Company, IT managed service providers can monitor the entire network to ensure proper security, identify potential problems, and prevent downtime. You can find a managed service provider that specializes in your particular industry so they have sufficient information to start showing results almost immediately.

Managed service providers are usually flexible. You can choose a number of services you need and ignore the rest. When the time comes, you can change the set of services according to your company’s new requirements. These providers are usually available 24/7365.

The main downside that can occur when working with a managed service provider is its inability to grow with your company. If you are planning to scale up your business, small providers simply may not keep up. Switching over to another provider can take time.

What is Outsourcing?

Outsourcing involves signing a contract with a third-party service provider to handle several jobs without much supervision on your end. For example, you can outsource software development to a development company or handling call intake to a call center.

These service providers usually have a set of skills your team lacks or has a short supply of. It may be tough to find the right experts in your area so you can outsource some tasks to remote or even offshore specialists. Once the task is complete, you can end the contract or renew it for another set of services.

Outsourcing tasks, especially in the IT sector, is less expensive than hiring in-house IT experts. Many of these projects require the expertise of several specialists. Hiring each one separately can be costly. Meanwhile, once the project is over, you would need to find other duties for the new employees.

That’s why many companies tend to outsource projects instead of trying to find the right expert to hire.

Another advantage of outsourcing is the flexibility. You can get the services whenever you need them and stop working with the company once the project is done. In between tasks, you don’t have to worry about paying the company or maintaining a relationship with it.

Outsourcing also comes with a couple of downsides. The biggest problem is that you usually look to outsource an issue once a problem occurs. These companies don’t offer preventive maintenance or proactive advice. They usually work according to the break/fix it model.

Which One is Right for You?

When choosing between managed services and outsourcing, you have to identify your company’s needs. If you have an in-house department that simply needs a hand every once in a while, outsourcing single projects could be the answer.

In case you need a partner to take over the entire sector of your work (like IT or HR) while still having full control over what’s done, consider choosing a managed service provider.

Managed services are usually an all-encompassing service option while outsourcing is done on an on-demand basis. You could start by outsourcing your tasks to figure out if such a scheme is sufficient for your company. If not, consider managed service providers.

Deepak Rupnar
After working as digital marketing consultant for 4 years Deepak decided to leave and start his own Business. To know more about Deepak, find him on Facebook, LinkedIn now.

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