As technology continues to evolve and become an integral part of businesses, the need for reliable IT services becomes increasingly essential. However, for many business owners, the question remains whether to opt for outsourced IT services or to fully entrust their business to a managed IT services provider. While both options offer advantages, they also come with their unique set of disadvantages. Therefore, it’s essential for business owners to weigh the benefits and drawbacks carefully to make an informed decision that suits their business needs.
Understanding Outsourced IT Services
What is Outsourced IT services?
Outsourced IT services are IT functions that are outsourced to an external service provider, rather than handled in-house. This approach is a cost-effective way for businesses to manage their IT infrastructure and functions while leveraging the expertise and experience of external providers.
For example, a small business may not have the resources to hire a full-time IT staff member to manage their network, instead, they can outsource this IT function to an external service provider who has the expertise and experience to manage their IT infrastructure efficiently.
What are common IT-related tasks that are outsourced?
- Helpdesk Support: Outsourcing helpdesk support allows businesses to provide end-users with IT support, including troubleshooting technical issues, managing user accounts, and providing software and hardware support.
- Network Management: Outsourcing network management involves the monitoring and maintenance of a business’s network infrastructure, including routers, switches, firewalls, and other network components.
- Software Development: Outsourcing software development involves contracting an external service provider to design, develop, and maintain custom software applications for a business.
- Cybersecurity: Outsourcing cybersecurity services includes implementing security protocols to protect a business’s digital assets and sensitive data from threats such as hacking, malware, and data breaches.
- Data Backup and Recovery: Outsourcing data backup and recovery involves backing up and restoring a business’s data in case of data loss or a disaster.
- Cloud Computing Services: Outsourcing cloud computing services involves the use of remote servers to store, manage, and process data, applications, and other IT resources.
What are the advantages and disadvantages of outsourcing IT services?
Advantages of outsourcing IT services
- Cost savings: Outsourcing IT services can be more cost-effective than hiring and maintaining an in-house IT team, particularly for small and medium-sized businesses.
- Access to expertise: Outsourcing IT services allows businesses to leverage external expertise and technology, which can be particularly beneficial for specialized tasks such as cybersecurity.
- Scalability: Outsourced IT services can be scaled up or down depending on business needs, providing flexibility and agility.
- Focus on core business: Outsourcing IT functions allows businesses to focus on their core competencies and strategic initiatives, rather than being bogged down by IT-related tasks.
Disadvantages of outsourcing IT services
- Loss of control: Outsourcing IT functions means relinquishing some control over IT infrastructure and processes, which may not be suitable for all businesses.
- Communication challenges: Working with an external service provider may present communication challenges, particularly if the provider is located in a different time zone or speaks a different language.
- Security risks: Outsourcing IT functions may increase security risks, particularly if sensitive data is involved. It’s essential to choose a reputable provider with robust security protocols.
- Dependence on a third party: Outsourcing IT functions means depending on a third party, which may not always be reliable or available when needed.
Understanding Managed IT Services
What is Managed IT Services?
Managed IT services refer to the outsourcing of all or some of a business’s IT operations to a third-party service provider. Unlike outsourced IT services, managed IT services are a comprehensive approach to managing a business’s IT infrastructure, where the service provider takes full responsibility for the management and maintenance of the IT environment.
What is Commonly Included in Managed IT Services?
Managed IT services typically include a wide range of IT functions, such as:
- Helpdesk Support: Providing end-users with IT support, including troubleshooting technical issues, managing user accounts, and providing software and hardware support.
- Network Management: Monitoring and maintaining a business’s network infrastructure, including routers, switches, firewalls, and other network components.
- Software Development: Designing, developing, and maintaining custom software applications for a business.
- Cybersecurity: Implementing security protocols to protect a business’s digital assets and sensitive data from threats such as hacking, malware, and data breaches.
- Data Backup and Recovery: Backing up and restoring a business’s data in case of data loss or a disaster.
- Cloud Computing Services: Providing remote servers to store, manage, and process data, applications, and other IT resources.
Advantages and Disadvantages of Managed IT Services over Outsourced IT
Advantages of managed IT services over outsourced IT services include:
- Comprehensive Management: Managed IT services provide a more comprehensive approach to IT management, as the service provider takes full responsibility for managing the IT environment, providing businesses with peace of mind.
- Proactive Maintenance: Managed IT service providers employ proactive measures to ensure that a business’s IT infrastructure is running optimally, including regular software updates, security patches, and other maintenance tasks.
- Scalability: Managed IT services can be tailored to a business’s specific needs, allowing businesses to scale their IT infrastructure as they grow.
Disadvantages of managed IT services over outsourced IT services include:
- Cost: Managed IT services are generally more expensive than outsourced IT services, as they provide a more comprehensive approach to IT management.
- Less Control: As the service provider takes full responsibility for managing the IT environment, businesses may have less control over the management of their IT infrastructure.
Comparing Outsourced IT and Managed IT Services: Key Differences
When it comes to IT services, businesses have two options: outsourcing IT services or entrusting their entire IT infrastructure to a managed IT service provider. Here are the key differences between outsourced IT and managed IT services:
Scope of Service
Outsourced IT services are generally focused on specific IT functions, such as helpdesk support, network management, or software development. Managed IT services, on the other hand, are a comprehensive approach to IT management that includes a range of IT functions, from helpdesk support to cybersecurity.
Delivery Model
Outsourced IT services are typically delivered on a project or contract basis, where the service provider is contracted to perform specific IT functions for a set period of time. Managed IT services, on the other hand, are delivered on an ongoing basis, with the service provider taking full responsibility for managing and maintaining a business’s IT infrastructure.
Cost Structure
Outsourced IT services are generally priced on a project or contract basis, with businesses paying for the specific IT services they require. Managed IT services are priced on a per-user or per-device basis, with businesses paying a monthly fee for the ongoing management and maintenance of their IT infrastructure.
While both outsourcing IT services and managed IT services have their advantages and disadvantages, the key difference between the two is the scope of service. Outsourced IT services provide businesses with more control over specific IT functions, while managed IT services provide a comprehensive approach to IT management. Ultimately, the choice between outsourced IT services and managed IT services will depend on a business’s specific needs and budget.
Which one is better? Outsourced IT or Managed IT Services?
When it comes to IT services, businesses have two options: outsourced IT services and managed IT services. Both options have their own benefits and drawbacks, and it can be difficult to determine which is the best fit for your business.
At NSN Infotech, we offer both outsourced IT services and managed IT services, and we can help you determine which option is best for your business. We’ll assess your current IT infrastructure and identify areas where improvements can be made. Based on our assessments, we’ll recommend either outsourced IT services or managed IT services, and we’ll work with you to create a customized plan that meets your unique needs and goals.
