IT Outsourcing vs. Managed Services

By JJ Rosen October 11, 2022
it outsourcing vs managed services

When deciding on IT outsourcing vs. managed services, many business owners wonder what the differences are between the two. To make your decision much easier, the following information will explain how they are different and similar.

IT Outsourcing vs. Managed Services

IT outsourcing deploys services, while managed services manages the IT requirements based on business needs.

Let’s dive into the two more to fully understand how each one can help your business stay on top of the latest technological advancements.

IT Outsourcing

Outsourcing IT means having someone or a team deploy tools as a business needs them. The outsourcing provider is available for specific tasks to ensure the technology of the business runs optimally.

Managed Services

Managed services offers a holistic approach. A managed services provider (MSP) establishes a relationship with the business. The MSP becomes part of the business’ team to provide consulting, advice and assistance with technological business services.

The Difference Between Outsourcing IT vs. Managed Services

Many people make the mistake of thinking outsourcing IT and receiving managed IT services are the same, but that is not true. Managed services’ support is much different from IT outsourcing in that the latter offers acute or as needed IT support, while the former operates on a continuum.

Why Manage Services Offers More Value to Business Processes

Managed services includes outsourced IT services and so much more. In the competitive market we’re in today, it’s important to ensure your business stays on track with technological advancements as they become available.

Managed IT services helps business achieve their goals by analyzing, assessing, recommending and implementing what’s needed to not only safeguard a business, but help it do more faster.

When you call on an outsource IT company, you may not be able to get your task completed if it’s not part of their service offerings. With managed service providers, you won’t even have to reach out to have a task completed, it will already be completed.

Similarities with Outsourced IT and Managed Services

For both types of IT support services, you will receive:

IT Specialists

With IT specialists available whenever you need them, you can run your business with peace of mind that your business’ tech is working for you vs. against you.

Latest Hardware and Software

A managed service provider or outsourced IT specialist will always use the latest technology. Your business will have the best hardware and software to use in addition to a high level of security.

More Time

With less focus on the information technology of your business, you’ll have the freedom to invest the time in growing your company by achieving your business goals.

How to Decide Between IT Outsourcing vs. Managed Services

The key differences between IT outsourcing vs. managed services are the level of support and management. Small business often seek IT outsourcing because their needs are limited and don’t change often.

Large companies benefit more from managed services, as their technological infrastructure is large. The operations of the company depends on the continuous operation of their technologies, so IT support has to be a core business function.

IT Outsourcing or Managed Services for Small Businesses

Does that mean all small businesses use IT outsourcing vs. managed services? No. Small businesses especially over the last couple of years have decided to invest in a higher level of IT services.

With the significant increase in security breaches worldwide, there is a concern over network security. Managed IT services offers the best defense against network security vulnerabilities.

Small business also realize that with broader strategies incorporating the latest technology can positively affect how their business functions. With specialized skills, managed service providers can help small business owners achieve their goals much faster.

What’s Included in Managed It Services

Managed IT services are similar to those of outsourced IT – just delivered differently. With the comprehensive approach managed service providers offer, there are additional services outside of typical outsourced services do not offer. Below is a list of some of the services available for businesses.

  • Help Desk Support
  • Identify and Resolve Security Weaknesses
  • Boosting Operation Speeds
  • 24/7 Network Monitoring
  • Continuous Maintenance
  • Network and Security Audits
  • Mobile Device Management

In addition to offering these services as part of a suite of managed IT services, consulting is available for them as well. Consulting differs from managed services in that the IT expert doesn’t implement the strategies but shares them with the business’s team for implementation.

How IT Outsourcing vs. Managed Services Differ

IT outsourcing is provided by a third-part vendor vs. managed services providers form a partnership with a company to understand the ins and outs of the technology and business goals. Managed IT services identify and recommend new ways to improve the technological processes of the business’s operations.

Outsourced IT specialist identify a problem, fix it and move on without taking the time to understand what would be best for the client’s needs. While they do implement best practices in IT support, the business model isn’t conducive to offering broader strategies.

How Much Does IT Outsourcing vs. Managed Services Cost

Managed IT services are often charged monthly. After assessing a client’s needs, a monthly cost for all required services is proposed. That monthly cost may change as the client’s needs change.

The cost of IT outsources depends on the technological services provided. Most outsourcing IT businesses offer a wide range of technology services to choose from, so when something goes wrong, a business owner or manager can require specific services.

Since IT outsourcing businesses are third-party providers, they send an invoice to be paid for by the business for their technology services.

How to Decide Between IT Outsourcing vs. Managed Services

It can be hard to decide between IT outsourcing vs. managed services, but Atiba is here to help. The following can help you decide on either one.

IT Outsourcing

  • Limited budget
  • Existing team of IT experts needing specialized skills infrequently
  • Low security vulnerabilities
  • Minimal technological needs

Managed Services

  • Large company
  • Small or no IT department
  • High level of network security required
  • Help desk support needed
  • Cybersecurity training and implementation
  • Regular technological audits, updates, upgrades, and implementation necessary

When you want an IT department to seamlessly join you to help you optimize your business processes in many ways, contact Atiba for its IT managed services. We have been regarded as the best IT company in Nashville and beyond, and we continue to impress our customers with all that we know and can do for them.

Contact us now to discuss your technological needs as they relate to your business goals. We look forward to putting together a customized proposal.

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