Difference Between Managed Services And Outsourcing

What Is The Difference Between Managed Services And Outsourcing?

When it comes to managing your IT, you have a lot of alternatives. You can either build your own team from the ground up, outsource your entire IT operation, or form a hybrid team with a managed IT service provider that specializes in achieving specified outcomes against pre-determined performance goals.

We’ve described some of the distinctions between outsourcing your IT and collaborating with a managed IT service provider in this blog.

What Is Outsourcing?

Outsourcing has been around for a long time, dating back to the 1980s. It refers to a situation in which a company delegated a portion of an existing activity or a section of a planned implementation to a third party.

As a result, outsourcing only covers a small portion of a company’s overall activities. When implementing the entire task in-house would need additional equipment and resources not worth investing in, it was deemed a cost-cutting choice.

As a result, the third party with all of the resources completes the work on your behalf, and you pay them afterward. IT outsourcing is the process of entrusting a part of your company’s IT and support services to a third party.

What Are Managed Services?

You’re working with an external organization for well-rounded and comprehensive IT support when you sign up with a managed IT services provider. Instead of transferring individual business processes and functions that are relatively precise and narrow, you benefit from a far more holistic and wholesome approach when you use this technique.

When you partner with XO, you can anticipate more strategic support as we manage your IT infrastructure and make recommendations for upgrades that will improve performance and results. What’s more, with managed IT solutions, you’re partnering with providers who are invested in your success, as we link your long-term objectives with our deep IT expertise.

Simply put, as managed IT support and infrastructure providers, you benefit from and have access to seasoned specialists who use their experience to manage your company’s IT demands more efficiently and effectively than a detached outsourced partner.

Managed Services Vs Outsourcing

Here are the differences between managed services and outsourcing:

Team Structure

Managed IT is frequently misunderstood as business jargon for IT outsourcing. Furthermore, many people envision the worst-case scenario of unskilled distant workers who don’t speak the same language as them. Is this the same as a managed IT environment? No, by opting for managed services you can relax and forget about your biggest concerns. Although managed IT requires the hire of an external team, it usually comprises a team of highly skilled individuals who speak the same language as you.

Support your Distributed Team

Meanwhile, IT outsourcing typically entails the management of certain business operations such as file scanning, data entry, or a help desk. When it comes to IT outsourcing, you may pick and choose the services you want.

Managed IT, on the other hand, takes a comprehensive approach to technological services. A managed services partner will have expertise in a variety of technology sectors. And they will frequently employ a team of qualified IT professionals with experience in both operational and managerial service and application support.

Work Structure

Outsourcing has a bad reputation. It suggests that you’ll be outsourcing tasks or relinquishing control over an important aspect of your company. Managed Services is the polar opposite of that, but it’s always grouped in with it, even if it’s a local solution. Your company already receives help from a variety of sources, such as consultants, agencies, and other contractors, to help it reach its objectives. Managed IT is one of those specialist services designed to assist you with your technical requirements.

Managed Services More Specialized Than Outsourcing Solutions

These are typically meant to provide more specific services than outsourcing can. Outsourcing is concerned with a company’s overall IT strategy, whereas managed IT services are concerned with individual aspects of the overall package.

Assuming a company finds certain issues with its network systems.

In that situation, you might feel that hiring a dedicated team of professionals to deal entirely with your company’s IT network is a good idea. This is a real-world example of a managed service.

Managed Services Cost-Effective Than Outsourcing Solutions

There may be ways to deliver certain types of products and services at a lower cost than getting them straight from the client. If you succeed, you’ll be providing managed services rather than outsourcing.

For instance, when a company hires a tech services company to maintain their IT infrastructure. The IT Services company can usually do this work for less money than if they tried it in-house.

Managed IT Solutions from XO

XO provides a comprehensive managed IT services solution for enterprises operating in the United States and Canada, including IT support, cybersecurity solutions, business continuity planning, IT asset management, and cloud computing and migration. We also assist you in ensuring compliance with data legislation and provide data disruption protection.

XO takes a business-centric and hands-on approach, taking care of your IT issues and tailoring our services to meet your company’s needs. We work with you to develop a complete and broad IT strategy, weeding out inefficiencies in your IT infrastructure, strengthening security, and protecting your company from hostile digital threats.

Contact us immediately to ensure that your company remains safe, secure, and operational!

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