What Is the Difference Between Managed Services and Outsourcing?


One of the common misconceptions with managed services is assuming outsourcing is just another term to describe it. While it’s true that both managed services and outsourcing involve hiring an external organization, they involve vastly different scopes of work. 

Outsourcing firm’s typically take on only a specific IT task and complete it by following a specific set of instructions.  They are then paid for their services once the job is complete. Popular reasons to outsource may include needing a skillset you don’t have inhouse or even ease of upscaling, however typically price is the factor. Outsourcing means saving money. 

Keep in mind that an Outsourcing firm’s goal is output. You are not paying them to look out for your best interests, you are simply paying them to complete a task. 

A managed service provider usually looks after a company’s complete IT Infrastructure. They work with the business on strategic decisions and recommendations to help the client improve business operations. A managed service provider offers a comprehensive range of technology services within one or many technology domains. Typically backed by a large team, these skilled IT professionals focus on the end user experience. A great managed service provider genuinely wants to see your business succeed. 

A managed service provider charges a monthly subscription fee.  

Keep in mind, not all managed service providers are created equal. Your MSP should have your best interest in mind. This relationship will go far beyond simple break-fix support, so you need to choose a partner you trust. Look for someone that has long-standing clients and are willing to speak on their behalf.  

Looking for more than just outsourced technology? Ready to take the leap into the MSP world? Look no further. 2W Tech is a technology service provider and MSP, specializing in solutions for the manufacturing industry. Give us a call today to learn more about our Managed Service plans.

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