Often, the terms outsourcing, and managed services are used interchangeably, and many people assume that they are the same thing. While both outsourcing and managed services involve services from other organizations, there are many differences between the two. Below, we’ll explain what some of the key differences are between managed services and outsourcing.
The delegation of planned and existing business activities to an outside organization is outsourcing. The work that is being outsourced is typically work that could be done in-house, however, by using a third-party company, businesses can often reduce labour, overhead, and equipment costs.
Typically, tasks associated with outsourcing are narrowly defined processes and not broad strategies. In simple terms, you ask the organization to perform the work, they complete the tasks and bill you for completing the work.
Managed services on the other hand, is the hiring of an outside organization to deliver comprehensive support. Instead of delegating straightforward or narrow tasks, managed service providers adopt a proactive and holistic approach with a subscription type payment model.
As an example of the difference, while you might outsource a specific, routine IT task to a third-party organization, a managed service provider would strategically assist your organization and manage the entire IT infrastructure, uncover improvements that could be made and they have a vested interest in the long-term success of your organization and develop effective solutions to drive your success. Managed service providers also have specific, sought-after industry expertise that can help manage your IT infrastructure and support more efficiently.
While both outsourcing and manages services offer different advantages, it is your organization’s needs and in-house skills that will determine which is the best option. If you are running an SME and need an IT service provider, managed services is the best choice as it manages infrastructure, proactively monitors networks, will develop a disaster management plan and places a strong focus on cybersecurity. As cyber threats are continuing to rise at an alarming rate, having the best possible team managing your organization’s cybersecurity efforts is more important than ever. The proactive monitoring that a managed service provider performs can significantly reduce risk and the likelihood of an attack taking place, in addition to having tested contingency measures in place should a disaster occur. In today’s world, using the old school ‘break and fix’ approach no longer cuts it and can be fatal to your business.
To learn more about how MBC can support your business with customized solutions to fit your unique IT needs and keep your business secure, get a free assessment today.