Managed Services vs. Outsourcing IT: Why Proactive Support is Crucial for Your Business
The managed services model is a specific kind of outsourcing that can cover all IT functions. This is also known as the outsourced model. In this model, the provider takes over all of the technology decisions within the parameters set by the business. The only main role the business retains is to check and review the processes.
Comparing outsourcing and managed services is not necessary; however, understanding the difference is crucial. The terms are often used interchangeably, but they refer to numerous models on which the outsourcing of information technology systems and services happens.
Outsourcing vs. Managed Services: A Technical Distinction
The difference between these models is a discussion that needs clarity, especially regarding service contracts.
| Service Model | Core Definition | Management Responsibility |
| Outsourcing | Getting services from a third party. | The client manages the functionality of the service internally. |
| Managed Services (MS) | Delegating IT operations to a third-party provider (MSP). | The MSP manages the functionality and ongoing responsibility remotely. |
For example, a company may implement a cloud service (SaaS) but manage the whole functionality in-house (Outsourcing). Conversely, if the company implements the cloud on a managed service model, the service provider will then manage the functionality remotely.
Why the Managed Services Model (MSP) is Better for Business
In a lot of businesses, IT resources are limited and can be overwhelmed fast. If you fall behind in keeping up with things like patches, backups, security, and more, the odds greatly increase that you will face an IT outage or other technology problem further down the road.
Key Advantages of Using an MSP
- Reduces Operational Risk: Managed services allow a business to delegate IT operations to a specific service provider. The Managed Services Provider (MSP) accepts all the ongoing responsibility for 24-hour monitoring, problem resolution, and managing the IT systems within a company.
- More Cost-Effective: In many cases, hiring a good MSP is less expensive and more efficient than training, hiring, and retaining your own dedicated IT staff.
- Boosts Employee Focus: For companies that do not have any IT staff, there is always one staff member who acts as the “go-to” person. By using an MSP, you allow staff members to focus more on the company’s core business instead of handling IT problems, which is always better for the bottom line.
- Frees Up In-House IT: Most IT departments are overworked, and their services are stretched. By outsourcing back-end functions or complex, fast-changing technologies, companies can dedicate their in-house technology experts to projects that will further their main objectives and promote innovation.
Hiring a trusted partner offers numerous advantages. Rather than debating which model is “better,” you should determine if your company needs third-party IT services managed, and if so, a Managed Service Provider offers the most proactive, comprehensive approach.
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