Managed services model is a specific kind of outsourcing that can cover all IT functions. This is also known as the outsourced model. In a managed services model, the provider takes over all of the technology decisions. But, this decision must be within the parameters that the business has. The only main role that the business has in the managed services model is to check and review the processes.
Managed IT service provider is a company that works in a remote manner in order to manage the IT infrastructure of their customers and the end-user systems of their customers. This is a straight approach and part of a subscription model.
Comparing outsourcing and managed services is not necessary. Are they the same thing? Well, yes and no. The terms are usually used interchangeably but they refer to numerous models on which the outsourcing information technology systems and services happen.
Outsourcing is getting services from a third party, without having the service provider manage the services. A company may implement a service cloud on a SaaS or Software as a Service model but manage the whole functionality of the cloud in-house. If the company implemented the cloud on a managed service model, the service provider would then manage the functionality of the cloud in a remote manner.
Comparing outsourcing and managed services is not a debate, you can’t really say if one is better than the other. Some companies need third-party IT services managed while some don’t. Rather, considering managed services compared to outsourcing is a discussion that needs clarity especially the terminologies.
In onshore services, outsourcing vs. managed services is an important comparison to make as the concepts refer to different types of third-party IT services. The difference also applies to offshore and nearshoring.
It is okay to use the term outsourcing to refer to IT services received from a third-party provider. But when it comes down to signing a service contract, it is very important to observe the technical difference of outsourcing and managed services.
In a lot of businesses, IT resources are limited and they 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 that will gravely impact your business negatively.
Managed services allows a business to delegate IT operations to a specific service provider. The managed services provider or MSP gets all the ongoing responsibility for 24-hour monitoring, problem resolution and managing for the IT systems within a company.
In many cases, having a good MSP is less expensive and more efficient than training, hiring and retaining your own IT staff. For the companies that do not have any IT staff, there is always a staff member that is the go-to person by the whole company. By using an MSP allows staff members to focus more on the company’s business, instead of handling IT problems, which is always better for the bottom line.
Hiring a trusted partner offers numerous advantages. One of them includes freeing up your IT staff. Most IT departments are worked too much and their services are stretched and 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.
Another advantage is that you can keep your pace with the demands of IT expertise. Organizations around the world are struggling to fill IT positions, particularly in mobile app development and cybersecurity. Outsourcing these functions to a partner with technically skilled and specialized engineers in new and emerging technologies can sway these pressures.
Also, you can have greater scalability. IT companies spend months and even years deploying big systems. A lot of organizations are finding it even more effective to start small, move fast and expand them as needed. CDW’s way to approach managed services makes it very easy for companies to scale up or down depending on their demand, like a retailer increasing their capacity around the holidays, or a startup experiencing sudden growth.