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What Is The Difference Between Managed Services And Outsourcing?

What Is the Difference between Managed Services and Outsourcing?

The terms “outsourced IT support” and “managed IT services” are often interchangeably tossed around. However, there are some key differences between the two models. Most notably, outsourced IT support is primarily a deployment tool, while managed IT services is a management tool. As a savvy business leader, you should learn these differences and consider them before making important decisions related to your business technology.

What Is Outsourcing?

Outsourcing is a business practice in which an organization hires a third party to handle specific functions, instead of performing the related tasks in‐house. The third party may be located anywhere throughout the world.

By outsourcing IT functions, your organization can benefit in several ways, including:

  • Reduced expenses
  • Access to a larger talent pool
  • Access to skills unavailable locally
  • Better use of internal resources
  • Ability to quickly scale

What Are Managed IT Services?

With managed IT services, you partner with a trusted technology expert known as a managed services provider (MSP). Your MSP has the requisite expertise, tools and technologies to manage some aspects of your business better than you can. This approach differs from traditional outsourcing, which may allow you to carry out specific business functions less expensively or more efficiently than you could in house, but doesn’t provide a consultative function.

When considering the differences between outsourcing and managed services, it’s important to understand each fulfills a specific need and one is not necessarily better than the other. It’s also correct to informally use the term “outsourcing” when referring to managed services provided by a third party.

However, before you sign a service contract, make sure you fully understand and consider the technical distinctions between managed IT services and traditional IT outsourcing. This will help ensure you make the best possible decision for your organization.

Vology offers customized, end‐to‐end solutions to help you design, build, monitor and protect your IT network. To learn about our managed IT services, contact us at (888) 808‐2199.