What is the difference between managed IT services and outsourcing?
One of two business models—managed services or outsourcing—is used by organizations to handle their IT needs. There are some significant differences between the two names despite the common confusion between them.
Under a managed service provider model, a third-party service provider manages and maintains an organization's IT infrastructure and systems. The service provider takes aggressive measures to ensure that the objectives of the company are consistently accomplished without a hitch. The service provider may also provide help desk services, monitoring and support, round-the-clock IT assistance, and other services. In a managed services model, the service provider is in responsible for constantly monitoring the IT environment.
On the other side, the term "outsourcing" describes a business strategy where a company hires a third-party service provider to handle specific IT services or tasks. In an outsourcing approach, the business still manages its IT systems and infrastructure while delegating certain duties to the service provider. These positions could entail developing software, overseeing networks, assisting customers at the help desk, or carrying out other IT-related tasks. The service provider is only accountable for the particular tasks or obligations for which it has been employed by the client.
Finally, managed services involve a higher level of IT administration in which the service provider entirely takes over the management of the company's IT infrastructure. Instead of doing this, outsourcing implies ceding some IT operations to a third-party service provider.
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