Outsourcing and managed services are the two terms that are used interchangeably. However, most people often need to understand that outsourcing is another term for managed services. While both managed services and outsourcing involves hiring from a third party but have vastly different working approaches.
Knowing the different work approaches will help you make the right and suitable business decisions. These services are the best options for companies and businesses when their workforces are stretching thin.
Outsourcing
Outsourcing is a famous business practice in which a company or business hires outsourcing firms to handle some tasks. These outsourcing firms can be located in any part of the world. By collaborating with an outsourcing company, your organization can have many benefits:
· Reduced expenses
· Accessing the larger talent pool
· Access to those skills that are not available in local regions
· Use of internal resources
· Quickly able to scale the company
Managed Services
In contrast to outsourcing, managed services offer a broader approach in supporting a company’s needs. In these services, a company collaborates with the Managed Service Provider (MSP), and this MSP is a technology expert. As a result, MSP has all the expertise in the required tools and technologies and can manage your business better than you do.
The Managed Service Provider provides complete responsibility for managing and monitoring business 24 x 7. MSPs also provide the resolution of the problem in the IT systems of a company. For instance, you can face revenue losses if your company’s financial application or customer relationship management goes down. So, to protect the company from these types of losses, hiring an MSP will be required.
Why to Use the Managed Services?
Managed services would be the best choice if you are running small or medium-sized enterprises or need an IT expert. It would be best because it will manage all the network infrastructures and monitor networks. An MSP will also develop a robust disaster management plan and focus on cyber security.
As you know that cyber crimes continue to rise at an alarming rate. The active monitoring that an expert will provide reduces the risk of cyber attacks. Hiring the Management Service Provider is like applying the old-school technique of ‘break and fix’ in your business. This can prove the best fatal approach to growing a business.
How is Outsourcing Different From Managed Services?
The functions of outsourcing firms and Managed Service Providers (MSP) may seem similar. However, the reality is that they are performing completely different functions. Large organizations typically buy outsourcing services. For instance, help desk teams and large call centers. In addition, significant payroll functions are also being outsourced by large organizations.
In managed services, the company often wants to hand over the responsibility of one business function. Instead of doing only a few business processes, these managed service providers provide an end to end support. They also offer many enhancements to your business model to provide a seamless user experience.