If you’re trying to decide whether to outsource or manage your company’s IT services, it’s important to understand the difference between the two. Managed services are proactive and focus on optimizing and preventing issues, while outsourcing is reactive and focuses on fixing issues as they occur. 

There are pros and cons to both managed services and outsourcing, but ultimately, managed services are a better solution for most businesses. If you’re considering investing in IT services, managed services are the way to go. 

Defining Managed Services 

Managed services are the proactive management of an IT service or application. This can include but is not limited to, monitoring, incident response, change management, and patch management. 

A managed service provider (MSP) is a company that offers managed services. An MSP can be an internal IT department or an external service provider. The term “managed services” is often used interchangeably with “outsourcing”.  

However, there is a difference between the two terms. Managed services are a type of outsourcing that generally refers to the proactive management of an IT service or application. Outsourcing, on the other hand, is generally more reactive and focuses on fixing issues as they occur. 

There are pros and cons to both managed services and outsourcing, but ultimately, managed services are a better solution for most businesses. If you’re considering investing in IT services, managed services are the way to go. 

What do Managed Services include? 

Managed services agreements typically include a variety of different components, which can be divided into two broad categories: proactive and reactive maintenance.  

Proactive maintenance includes tasks such as help desk support and technical support, while reactive maintenance focuses on fixing issues as they occur.  

Other important components of managed services agreements often include network and security management, backup and disaster recovery planning, and software updates and upgrades. 

Help Desk Support 

Help desk support is one of the most important components of a managed services agreement. Help desk support provides a direct line of communication between businesses and their IT service providers. This allows businesses to quickly resolve any technical issues that may arise. Technical support staff are usually available 24 hours a day, 7 days a week, 365 days a year. 

Network Management 

Network management is another important component of a managed services agreement. It ensures that a business’s network is always running smoothly and efficiently. This can include tasks such as monitoring network traffic, identifying bottlenecks, and troubleshooting network problems. 

Security Management 

Security management helps businesses to protect their networks from external threats such as hackers and viruses. This can include tasks such as firewalls configuration, intrusion detection, and encryption setup. 

Backup and Disaster Recovery Planning 

Backup and disaster recovery planning are also often included in managed services agreements. These components help businesses to ensure that their data is always safe and secure.  

Backup systems can provide an additional layer of protection against data loss due to hardware failures or natural disasters. Disaster recovery plans can help businesses to quickly recover from any major disruptions that may occur. 

Software Upgrades  

Software updates and upgrades are also typically included in managed services agreements. Software updates can help businesses to keep their applications up to date with the latest security patches and features. Upgrades can provide businesses with access to new features and functionality as they become available. 

The Difference Between Managed Services and Outsourcing 

Managed services and outsourcing are two different ways of handling IT services or applications. There are pros and cons to both managed services and outsourcing, but ultimately, managed services are a better solution for most businesses. 

MSP is Proactive.  

The main difference between managed services and outsourcing is that managed services are proactive while outsourcing is reactive. With managed services, you have a partner that is invested in your success, while with outsourcing you are just another client. Managed services focus on optimizing and preventing issues, while outsourcing focuses on fixing issues as they occur. 

MSP offers a wide scope.  

Managed services provide more comprehensive coverage than outsourcing. In most cases, managed service providers will offer help desk support, technical support, network management, security management, backup and disaster recovery planning, and software updates and upgrades.  

Some providers also offer additional services such as website design and development, project management, and data analytics. Outsourcing typically focuses on a specific area or issue and is not as comprehensive in scope. 

Managed Services Cost More  

Another difference between managed services and outsourcing is that managed services are often more expensive than outsourcing. This is because you are paying for a team of experts to proactively manage your IT systems rather than just paying for someone to fix problems as they arise.  

However, the long-term benefits of managed services far outweigh the short-term costs. investing in managed services will save you money in the long run by preventing costly downtime and reducing the need for emergency repairs. 

So, if you’re looking for a partner to help you manage your IT systems, managed services is the way to go. You’ll get comprehensive coverage from a team of experts who are invested in your success. 

Pros and Cons of Managed Services 

There are both pros and cons to managed services. Let’s take a look:  

Pros 

Cost Effective 

One pro is that they can be more cost effective than in-house staff. When you outsource, you only pay for the services you need, when you need them. You don’t have the overhead of benefits and salaries for full-time staff. In addition, managed service providers often have economies of scale that allow them to pass on savings to their clients.  

24/7 Support  

Another benefit of managed services is that you can often get 24/7 support. Managed service providers typically have staff working around the clock to help you with any problems that may arise. 

Cons 

You depend on it. 

A con of managed services is that you are outsourcing an important part of your business. When you outsource, you are relying on another company to provide a critical service. This can be a risk if the provider is not reliable or does not have a good track record. 

You have to give some control.  

A final con is that you may have less control over the quality of service. When you outsource, you are giving up some control over how the work is done. You may also find it difficult to get the same level of service from an outsourced provider as you would from in-house staff. 

Why You Should Consider Managed Services 

If you’re considering outsourcing some or all of your IT functions, managed services should be at the top of your list. Managed services can provide your business with many benefits that you may not be able to get with in-house staff or traditional outsourcing arrangements.  

Some of the most compelling reasons to consider managed services include increased efficiency, cost savings, scalability, access to skilled resources, and flexibility. 

Let’s explore each of these benefits in more detail: 

Increased Efficiency:  

One of the biggest advantages of managed services is that it can help increase the efficiency of your IT operations. Managed service providers (MSPs) have the tools and expertise to quickly identify and fix problems before they cause major disruptions. 

They can also proactively monitor your systems to identify potential issues and take steps to prevent them from becoming actual problems. In addition, MSPs can often provide more efficient ways of doing things that you may not have considered. 

 For example, they might suggest using cloud-based applications rather than on-premises software to save money on license fees and reduce maintenance costs. 

Cost Savings:  

Managed services can also help you save money in the long run. When you outsource IT functions to an MSP, you no longer have to worry about hiring and training staff, purchasing equipment, or paying for expensive software licenses. In addition, MSPs usually have economies of scale that allow them to get discounts from vendors that they pass on to their clients. 

Scalability:  

Managed services can be very helpful if your business is growing or experiences seasonal fluctuations in demand. With managed services, you only pay for the IT resources you need when you need them. This can help you avoid overspending during slow periods and ensures that you have enough capacity during busy times. 

Access to Skilled Resources:  

When you work with an MSP, you’ll have access to a team of skilled IT professionals without having to hire them full-time. This can be a major advantage if you don’t have the internal resources required to support complex IT infrastructure. And if one of your employees leaves or takes a leave of absence, an MSP can quickly provide a replacement so that there’s no interruption in service. 

Flexibility:  

Managed services can also give you more flexibility when it comes to budgeting and decision-making. With traditional outsourcing arrangements, you typically have to sign a contract for a set period of time (usually three years or more). This can make it difficult to adjust your IT budget if unexpected expenses arise or if your business needs change. With managed services, however, you usually pay on a monthly basis which gives you more flexibility.