Outsourced IT Services vs Managed IT Services

For many businesses, paying for an experienced in-house IT support team is simply off the cards; whether due to the needs of the business, or the associated salary costs. This is particularly true for small to medium-sized enterprises (SMEs), who do not have the resources to manage their own technical support - the most popular alternatives are outsourced IT services and managed IT services.
However, knowing the difference between these two options is crucial, allowing businesses to choose the right IT service model for business continuity, cost-efficiency, and scalability. In this article, we’ll look at the pros and cons of outsourced IT services and managed IT services, to help you decide which service is right for your business!
What Are Outsourced IT Services?
Outsourced IT support services are essentially what it says on the tin - it involves outsourcing (hiring) an external provider to handle specific IT tasks or projects for a business, often on an ad-hoc basis.
This support model can range from short-term projects, such as software implementation or system upgrades, to some long-term engagements like network management or cyber security. Outsourced services are typically task-orientated, allowing businesses to “tap into” specialised expertise without the need to hire full-time staff in-house - it’s a flexible solution for businesses, often used to reduce costs, access a broader talent pool, or support rapid business growth.
Why Choose Outsourced IT Support?
- Cost efficiency, as businesses only pay for the services they need, as/when they need them.
- Access to global IT expertise and advanced technologies.
- Flexibility in scaling IT resources based on project-by-project demands.
What Challenges Are Associated With Outsourced IT Support?
Depending on the supplier, a lack of control and transparency may create communication issues.
What Are Managed IT Services?
Meanwhile, managed IT services involve partnering with an external provider to oversee and manage a business’s entire IT infrastructure and operations, on an ongoing basis. Unlike outsourced IT services, which are typically task-specific, managed IT services are comprehensive and proactive. The provider assumes responsibility for monitoring, managing, and maintaining It systems for consistent performance and security.
This model typically includes services such as long-term:
- network management,
- data backup,
- cyber security,
- cloud services, and
- help desk support, to name just a few.
Managed service providers, often known as MSPs, work closely with each business to deliver continuous, round-the-clock IT support under a fixed, subscription-based contract.
Why Choose Managed IT Support?
- Proactive maintenance and monitoring prevent issues before they escalate.
- Strategic, long-term IT planning and scalability as the business grows.
- Predictable, fixed monthly costs for long-term IT support.
What Challenges Are Associated With Managed IT Support?
- The initial setup and onboarding process can take time and resources.
- Long-term contracts may not suit every business, especially those with fluctuating IT needs.
Outsourced IT and Managed IT Services Services: Understanding the Costs
Outsourced IT services typically follow a project-based or hourly pricing model, making costs more variable. Factors influencing the cost include:
- Scope of the project (e.g., migration to the cloud, cyber security audits, software implementation).
- Duration of the project or task.
- Expertise required (more specialised skills, like cyber security or network architecture, may cost more).
On the other hand, managed IT services usually come with predictable, subscription-based pricing, often charged monthly or annually. The cost typically depends on factors like:
- Number of users or devices being supported.
- Level of service provided, such as basic IT support, cyber security, cloud services, or regular data backup.
- Service tier (e.g., 24/7 monitoring, on-site support).
The Key Differences Between Outsourced and Managed IT Services
So, how can we easily separate these services to avoid confusion in the future? The table below compares the key aspects to consider when hiring external IT support services.
Aspect | Outsourced IT Services | Managed IT Services |
---|---|---|
Scope of Work | Task-specific or project-based | Comprehensive, ongoing management |
Control | Less day-to-day control; managed by the external provider | Greater collaboration and strategic partnership. |
Cost Structure | Variable, project-based costs | Predictable, fixed monthly or yearly fees |
Duration | Often short-term or temporary engagement | Long-term, continuous service contract |
Focus | Reactive; often hired to address specific IT issues | Proactive; focuses on preventing issues and improving IT performance |
Flexibility | High flexibility; service can be scaled up or down as needed | Consistent support but less flexibility for project-based needs |
Internal IT Team Role | Typically used when there’s little or no internal IT support | Able to work alongside any internal IT teams in partnership |
Examples of Services | Software implementation, cyber security audits, cloud migration | Network monitoring, help desk support, regular data backups |
Best for… | Businesses needing specialised skills or short-term projects | Businesses seeking long-term IT management and strategic IT planning |
Which Service Is Right for Your Business?
So, as shown above, there are several important differences between these two services, but which is most appropriate for your needs? To begin with, consider the following:
1. How big is your business?
Both these services are suitable for businesses of all sizes, but larger businesses or those with a greater emphasis on online operations may need longer-term solutions provided by managed IT services.
2. What specific IT needs do you require?
Outsourced IT services are great for short-term or specific issues that need resolving, but managed IT services are tailored to ongoing issues that require frequent monitoring.
3. What is your budget?
Businesses that have a larger budget dedicated to IT support may prefer fixed monthly or yearly contracts, provided by managed IT services. However, those who are affected by fluctuating revenue may prefer to use outsourced services, only paying when they need the service.
4. Do you have any industry compliance requirements?
Some businesses have stricter cyber security regulations to follow, such as those that deal with governments and councils, requiring long-term IT planning and monitoring provided by managed IT service providers.
For Outsourced or Managed IT Services, We’ve Got You Covered
At ReformIT, we provide outsourced IT support services and managed IT services, giving your business flexibility over what service is best for your needs. Our friendly team is always here to answer any questions you may have about any of our services - just simply get in touch with us!