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Managed Services (MSP)

Managed Services Vs. Outsourcing: What is the Difference

Managed Services Vs. Outsourcing

People tend to think that managed services is an iced-cake that means the same as outsourcing. Though both have a similarity in that they involve external sourcing of assistance from another organization, there's plenty of difference worth noting. In this blog post, we will cover the two sides to clear any confusion you might have while explicating which option is excellent for your business.

 

What is Outsourcing

Its true, outsourcing has been around for some time now, which spans from the 80s. In simple terms, it refers to a situation where a firm delegates part of an already existing activity or a segment of a planned implementation to an outside party.

Hence, outsourcing involves a narrow part of the whole activity of what the company is executing. It was considered a cost-cutting option when implementing the entire task in-house would require more equipment and resources not worth investing in.

Therefore, the third party with all the resources complete the work on your behalf, and then you pay them. IT outsourcing is entrusting part of your business IT and support services to a third party.

 

Managed Services Explained

On the other hand, managed services take a broader strategy than outsourcing. A managed service provider (MSP) is a company that offers managed services. An MSP has a large skilled team that provides a wide range of business IT services. This means that they provide specifically tailored solutions that fit your business needs.

The primary difference between the two is the approach and intentions. A firm offering outsourcing services need to understand less of the business because their scope is narrow. Once they're done with the assigned job, you pay them and part ways.

Managed IT services is a more permanent solution where the provider seeks to understand what you need while suggesting the best solutions for your case. Their drive is to see your business's success by applying their skilled professional force to manage your business IT and support remotely.

The managed service provider basically manages your IT department by consistently providing planning, support, and maintenance for a fixed monthly subscription.

 

So, Which Way Do I Go?

Well, it a matter of what your organization requires and the capabilities you've. However, for small and medium businesses (SMEs), managed service is the way to go.

This is especially true because an MSP has at its disposal the resources, more significant staff, and experienced professionals than what most SMEs can afford. Besides, they've purely specialized in IT, signifying they have top-notch know-how of current trends and technology.

 

Why Managed is the Better Option

By now, you've chosen the way to follow. Here are some other benefits you can reap from managed services.

  • Accountability

    In today's world, technology is fast growing. What was trending last year might easily be a thing of the past. With managed services, you don't have to worry about this. The MSP is fully accountable and ready to handle any downs like cybersecurity threats, natural disasters, and emergencies.
  •  Long-term

    An experienced managed service provider seeks to understand the client's needs and vision. Therefore, they can firmly help a firm chart its path by offering progressive solutions. The long-term aspects also mean they can offer a tried, tested and successful solution that has worked flawlessly with a like business.
  • Real partner

    Outsourcing providers barely know your business's culture or trends because they deal with a narrower work aspect within a short period. Managed services will be more accustomed to your business's cultures as their teams are always in touch with your onsite workforce. This is an incredible partnership since the team may skill-up your human resource or offer solutions to everyday business issues.

 

Choosing a Managed Service Provider

This part is perhaps the most essential. Choose an MSP who has the experience, resources, support and clear SLA's. Be sure that they've worked with clients that resemble your company and are acquainted with the technologies you use.

At Network Connections, we let our clients focus on core operations while impeccably managing their IT environment for a low monthly fee. We pride ourselves with over two decades of experience dealing with servers, desktops, and network resources. Get in touch today for a business IT consultation.

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