Managed Services vs Outsourcing
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Managed Services vs Outsourcing: What’s the Difference?

Ask any number of experts about Managed Services and you would probably get more than 100 different answers. However, all the answers will have some common trends & consistency. For IT leaders, Managed Services has become an important over the last few years.

On the other hand Outsourcing has been in use for over three decades now. Since then, it has evolved, grown and changed to holistic IT offshoring now. The dot-com boom introduced new terms like application service providers (ASPs), however they seemed to have disappeared almost as fast as they appeared. And, of course, since the late 2000s, the term Cloud is being widely used in any communication related to outsourcing.

This is where the differentiation lies. Outsourcing has become a panacea. Currently, it’s a generic term for almost anything that can be offloaded to a third party, and its meaning has become diluted. For many, this is seen as an obsolete term for increasingly standardized (cost-oriented) services. That’s why the term Managed Services is becoming more and more important. This reflects the growing demand for outcome-based models such as SLAs that have business implications offered on a subscription basis. This is a more meaningful a term for a particular solution that goes beyond cost savings to meet rising expectations.

In this era of Digital Transformation, Managed Services are increasingly becoming Cloud-first. Going the Cloud way not only makes Managed Services convenient, fast, superior and seamless but also cost effective. Another important point on Managed Services vs Outsourcing is that Managed Services are about managing your IT Infra rather than deployment tools on your IT Infra. Managed Services is really about people, processes and tools.

Think of Managed Services as a chef from an established restaurant. Great chefs can cook anywhere. In your yard, your kitchen, your own restaurant, marquee or ship; it doesn’t really matter. That’s because good chefs are skilled and hire the right people for the job. They have great tools (knives, pans, etc.) and of course great processes (recipes).

The same applies to Managed Services Providers (MSPs). A good MSP can serve you regardless of how the technology is delivered. They can even remotely monitor & manage your IT Infra deployed on-premises or hosted in third-party data centers. It can be delivered from the provider’s own data center or the cloud (public or private).  All of Managed Services will be more in demand as the indutries become more competitive, agile and adopt digitization.

Progression Managed Services give you the Right Mix – Your Data Center & IT Infra with Progression’s Managed Cloud & IT Services. It gives you the piece of mind & competitive advantage to derive extra value for your end customers, thereby putting you a continually evolving path in the Digital Transformation era. Get in touch with us for your FREE IT assessment today!

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