A Quick Insight into Differences between Managed Services and Outsourcing
Introduction
Managed Services and Outsourcing are two methods that organizations in India focus on while choosing the path to build the workforce. Through the years, the uncertainties of business environments have evolved rapidly and continue to change further. This has led to an increase in costs for many companies. It has also led to skill gaps and differences among employees across organizations.
Businesses have been looking for opportunities to reduce costs as well as to reevaluate and streamline the hiring process of new employees. Some key measures also include processes that ensure they upskill their employees, thereby making sure their teams are up for managing and delivering tasks assigned to them in a sustainable and optimized manner.
Building agile teams is a challenge that both approaches, Best Managed Service Provider, aim to solve. Managed Services and Outsourcing are two methods that organizations in India focus on while choosing the path to build the workforce.
Many professionals in the industry use the two terms in place of one another. However, there are certain differences in these approaches – “Outsourcing vs. Managed Services.”
Both managed services and outsourcing of these approaches to hiring and upskilling teams come with their benefits and challenges. They are both amazing processes that can give excellent results in handling a new and challenging project in the short run. At the same time, it depends on the organization to choose the one that is beneficial for the organization. It also depends on factors such as company environment, values, beliefs, behaviors, and, of course, the way these service processes will impact the objectives of the organization in the long run.
Difference Between Managed Services and Outsourcing
The following is an explanation of the distinctions between managed services and outsourcing:
Outsourcing is a pre-defined and pre-planned process where a company shares a detailed plan with the outsourcing agency to execute. The outsourcing agency completes the tasks according to the plan provided by the organization. It ensures that the process flows smoothly according to the intended plan using the agency’s existing human resource outsourcing, technology, and other resources. One of the objectives of outsourcing is to reduce costs by having defined budgets presented to the company by the outsourcing agency. Outsourcing as an activity is usually used for projects of smaller scale and narrow budgets, while the company can focus on more creative strategies and other objectives of their organization.
Managed Services, on the other hand, refer to engaging an outside agency or company to handle end-to-end project management along with expertise and knowledge-based support.
These projects have a broad approach by the Organization outsourcing their project so as to gain valuable insights and end-to-end planning as well as the execution of the project by the agency it has been outsourced to. A subscription-based model of payments is usually preferred where Managed Services are required.
Example: A task for the IT Department can be outsourced to the outsourcing agency, which will perform that particular task. However, in the case of managed services, the whole IT department and all its processes are outsourced to the Managed Services agency, which handles the end-to-end processes of the IT department in the leu of that organization.
An outsourcing agency provides service for a particular task, which is usually a part of the company’s overall project. The agency is generally concerned with that specific task rather than the whole process around it.
Whereas in the case of Managed Services, the whole process is being handled by the outside agency with a concern about the company’s future and organizational success.
Managed Services Vs. Outsourcing
The following are a few benefits of managed services over outsourcing:
• In the case of larger organizations, having managed services is a much better option as they act as partners for your organization. They collaborate with your Organization and provide real-time insights, strategies, and inputs for the business organization. They also enable increased employee motivation via the inputs and techniques they share with the teams and managers. They also provide customized training programs to upskill the employee’s skill sets. It proves to be a better partnership considering the achievement of organizational goals and employee developmental goals.
• In the case of an outsourcing agency, there is limited responsibility on the agency as the plan and strategy surrounding the services provided to the company by the outsourcing agency is provided by the company itself. However, Managed Services takes on the projects with an extended lead on the responsibilities regarding the results and organizational objectives. Accountability forms a major part of managed services, which is usually minimal in the case of outsourcing.
• Managed Services ensures longer ongoing partnerships with the company, which leads to increased confidence in the partnership. Managed Services considers ups and downs in the business cycles and maintain contingency plans so as to take care of any unforeseeable circumstances for the company and act as an extension arm of the company.
• These service providers bring a team of highly skilled professionals with proven methods and experience from various organizations. They are familiar with different company cultures, contributing to increased positivity and success within your organization. Partnering with them can assist your company in enhancing the skills of your workforce through upskilling and reskilling initiatives.
Conclusion
Recognize the demands of both your employees and your business. As a result, consider the advantages of each service again and select the best staffing company in India. A growing company can benefit greatly from managed services, which can keep you competitive in the face of many unknowns.
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