Managed Services vs. Outsourcing: When Does One Become The Other?

Know The Industry: Managed Services vs. Outsourcing

The terms managed services and outsourcing can sometimes be confusing. While they both involve utilizing an outside vendor for IT services, the difference lies in the level and type of services received from the provider. Understanding the difference between the two can be beneficial when selecting the right IT provider for your business.

What is IT Outsourcing?

Outsourcing has become an overarching umbrella term for virtually any service you hire a third-party to complete. Typically, outsourcing companies provide short-term contracted services. These outsourced providers provide only a portion of a certain job that the hiring company is not equipped to handle in-house. It’s hard to compare outsourcing with managed service, since managed services is technically a model of outsourcing. Instead of looking at the differences of managed services vs. outsourcing, it’s better to discuss when one becomes the other.

How Do Managed Services Compare?

It’s important to understand how managed services works in order to understand how it is a form of traditional outsourcing. Managed service is considered an outsourcing solution because it also involves the hiring of a third-party IT vendor for services or expertise. However, managed services provide a more comprehensive service than a simple outsourced vendor. These providers become part of your business by partnering with you to help you achieve your business goals and identify areas for improvement. Take, for example, IND’s TotalCare Managed Services. With this type of support, your business’s entire technology infrastructure is monitored and maintained by our team of specialists. If a malfunction or system failure occurs, there’s no need to call a break-fix service. Our team is already one step ahead of you, combatting any issue to minimize downtime and maximize your profitability. IND managed services offer you peace of mind through ongoing maintenance and support.

Now that you know the difference between managed services vs. outsourcing, you will be better equipped to make the best decision for your business. One is not necessarily superior to the other. Some companies need a managed provider, while others don’t. You may prefer the outsourcing model if you have in-house IT staff who can support your system upgrades and maintenance. Managed services may be the right solution for your business if you do not need the personnel to support your IT needs and are looking for a more cost-effective solution for your business.

No matter what type of system support your office needs, IND Corporation will help craft a personalized plan for your business. Reduce your overall risk and improve your internal efficiency with our dedicated support system. Contact our team today to receive a free consultation.