What Is the Managed IT Services and How to Outsourcing?

According to several reports, the managed IT services market is forecasted to grow from $180.5 billion in 2018 to $282 by 2023. This is because companies are increasingly relying on these services given that their productivity and revenues are directly tied to the strength of their IT assets. Managed IT services, however, are often confused with outsourcing services. So, what is the difference? There are many differences between the two ranging from the nature of the services they provide to the duration of each service. 

Let’s explore these differences in greater detail to understand when each one would be more desirable:

Definition

According to its definition, managed IT services are a subset of outsourcing services as they involve the outsourcing of complex networks and IT infrastructure to a third-party professional managed service provider (MSP). In comparison, outsourcing is broadly defined as the business practice of contracting certain services that were traditionally performed in-house to a third-party service provider, usually as a cost-cutting measure. Outsourcing can be applied to a wide range of industries like manufacturing, back-office support, and customer support while managed services are restricted to the IT domain.

End Goal

Managed IT services also differ from outsourcing services in that the third-party MSP takes full ownership of the entire IT system’s management and provides direction in terms of strategies to adopt while outsourcing is limited to the processing of certain documentation or execution of pre-specified functions alone. This is because the purpose of both managed services and outsourcing differ greatly. Managed IT services’ sole purpose is to continually manage and improve business operations, while the end goal of outsourcing is to deliver services that were previously performed in-house with greater efficiency and at a lower cost. Outsourcing is process (or deployment) heavy while managed IT services are management heavy.

Duration

Another key differentiator between the two is that one is only required for a short period of time, while the other is required for an indefinite period of time. Outsourcing usually involves a short-term contract as it is limited in scope and once the efficiencies are in place, the outsourcing service provider is no longer needed. On the other hand, managed IT services are a permanent solution as they become your partners in identifying areas for improvement and in helping you achieve your business goals. MSPs are specialists in their field and can manage some aspect of your business far better than you can, making them a great outsourcing partner for your IT business needs.

It is important to understand how managed IT services differ from traditional outsourcing solutions to distinguish when and why to use them. Managed IT services are needed in situations where you need experts to step in and handle everything from network and system monitoring to security management and disaster recovery on your behalf. They are also permanent solutions for your IT requirements as they involve a lot of management and are consultative in nature. In sharp contrast, outsourcing is useful for when you need experts to step in and improve your processes to lower your costs. Outsourcing services also happen to be shorter in duration as once the efficiencies are in place, their assistance is no longer needed. Both, however, happen to be outsourcing solutions in nature and so do not have in-house teams or departments handling them.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Nov 29th 2019 05:37. Viewed 461 times.

Share on APSense

Comments