You will very often hear people mistakenly use the word outsourcing to actually mean managed services. Outsourcing IT services and managed IT services are in essence quite similar and the differences are quite subtle. One is a management tool while the other is a deployment tool. What then are the differences and which is the better concept to incorporate into business models today?
A way of describing managed IT solutions would be to as information technology duties provided by a third party contractor that is then delivered to a customer. The goal of a managed IT service provider is to take on the responsibility for the proper working of IT related work that would otherwise be tedious for in-house IT staff.
Traditional outsourcing is very similar in function and concept to managed IT services. Outsourcing involves doing the same tasks as managed IT services but instead transfers all the IT related needs to the specified company. The difference between the two is that managed IT services usually provide services that the customer would not be able to handle independently.
Why then should you use Managed IT services vs outsourcing? Below are 3 reasons why.
Outsourcing IT services means relinquishing all your IT related services to another company which would then take on that responsibility on your behalf. This normally involves getting rid of an entire IT department and giving their job to another company. You, however, end up paying more in outsourcing costs as these companies will charge for every service they provide including simple inexpensive tasks. Managed IT providers only provide the services which the business cannot handle by themselves. The business can, therefore, tackle a huge part of the IT related workload while keeping the expenses at a minimum.
Managed IT service providers are specialists in every business environment they are thrown in and are able to manage some aspects of your business better than you can by yourself. Managed IT services are designed to integrate into every business and work hand in hand with the business’ IT department to ensure the smooth running of the system. They, therefore, provide more effective interactions and communication with the business. Outsourcing firms, as mentioned earlier, are located away from the business sometimes even outside the country. They provide less effective solutions for the business as they can’t directly connect with the business and can’t physically oversee operations.
With managed IT services, a customer is able to see their purchases through customizable user dashboards provided by the managed IT firm. This is one of the most valuable tools provided by managed IT service providers because you get to know exactly how much you are spending on each service. This transparency builds trust and confidence between the service provider and yourself. Additionally, you get to see how effectively your provider is doing their tasks. In IT outsourcing, you work blindly not seeing what your money is being used for or how effectively it is being used.