Managed IT Services Vs. Outsourcing: What’s the Difference?

Image courtesy of Pixabay.

Information technology, or IT, might be a relatively new field, but that hasn’t stopped it from becoming one of the fastest-growing industries in our world today. From system governance and operation to hardware and infrastructure, IT encompasses a wide variety of moving parts, and when it comes to business technology, there are several different ways that a company can go about managing its IT needs. These days, there are many IT companies which are providing IT services from all corners of the spectrum.

Because technology has grown to be such an integral part of business, extra IT help has become a necessity. But in a day and age where startups are thriving, not every business has the resources to keep an in-house IT department. Luckily, small and medium-sized businesses have other options: third-party IT service providers are able to offer the IT assistance that companies need, even if they don’t have a designated department themselves. For this reason, managed IT services and outsourcing are rapidly rising in popularity among companies of every size and industry. But, what, exactly, is the difference between these two forms of IT services? Keep reading to find out more about managed services and outsourcing, including how to figure out which one is right for your business.

Breaking Down Managed Services and Outsourcing

Before we tackle finding the right form of IT services for your business, let’s take a closer look at both managed services and outsourcing. While the two might seem practically identical at first, there’s a pretty big distinction that separates them from each other, and this will play a large role in determining whether your business should go with managed services or outsourcing.

Managed Services

A managed services provider (MSP) is an external company that provides comprehensive, holistic IT services to a company, usually for a flat fee. This means that you get all-inclusive, expert services without having to house and manage your own IT department. There are different types of companies and you should research them to find which one would suit you best.

Outsourcing

Outsourcing is similar to managed services in that it involves teaming up with a third-party company and receiving professional help for IT services. That being said, outsourcing is far more narrow than managed services: rather than having broad coverage, you’d be seeking a specific service or business need.

A benefit that comes with both managed services and outsourcing? You’d be dealing with an anticipated expense that you can factor into your company’s budget ahead of time. Image courtesy of Pixabay.

Deciding What Form of IT Services Is Right For You

So, how do you decide what form of IT services is right for you? Well, in most cases, it depends on your company, your budget, and your tech needs. Because outsourcing covers a specific service, it can be easier to accommodate financially, especially if you don’t think your company needs full-scale IT services. That being said, if you’re looking for versatile support and a range of services, then finding an MSP is probably the more ideal option.

What Kinds of Services Does an MSP Provide?

As we mentioned before, MSPs cover a long list of IT services, and while some companies offer more services than others, there are a couple of general types of work that almost every MSP does.

  • Road-mapping: If you’re a company that’s just starting out, an MSP can guide you through designing and implementing a tech system that offers you everything you need. Likewise, if your system is outdated, an MSP can help you upgrade your IT infrastructure-whether it be piece-by-piece or as a whole.
  • Data Backup and Disaster Recovery: Storing, retrieving, and recovering information is a monumental part of business technology, and you never want to put yourself in the position of losing important files. An MSP can ensure that your backup and recovery system is the best that it can be, so if an accident does happen, you won’t be left stranded.
  • Security: Technology has introduced a lot of solutions to day-to-day inconvenience, but there’s no denying that it brings with it a number of problems as well. Cyber threats like ransomware, phishing, hacking, and data leakage can each have devastating effects on a business. Even if you’ve never had a problem with network security before, chances are that you’re unexpectedly vulnerable in one way or another, and an MSP can assist you in protecting yourself from breaches in your system.
  • Optimization: Remember how we said that business and technology have developed a sort of inter-dependency? That means that if you don’t have the latest tech, you’re at a disadvantage. An MSP can keep you up-to-date on what types of technology your business needs and how you can use them to optimize your company’s performance.

Finding an IT Service Provider

At the end of the day, whether you go with managed services or outsourcing, you need to find an IT service provider that you can trust. Unfortunately, this can be easier said than done-because, like in any industry, some IT companies are just better than others. Communication, response time, and customer service are all defining elements to look for in a service provider, and you don’t want to make the mistake of not doing your research. You need to find a company that suits you and your business.

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1 thought on “Managed IT Services Vs. Outsourcing: What’s the Difference?

  1. Griffin

    This article is very interesting! I knew what outsourcing was, but I did not know what the term “managed services” referred to when it came to IT. This reading made me want to learn more about the two – thanks!

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