Many small and medium-sized businesses often lack the resources or budget necessary to set up a full-scale IT department. While they may have one or two dedicated employees, achieving their objectives frequently requires outsourcing IT services. When outsourcing IT, it is very important to consider whether Managed Services (MS) or Professional Services (PS) are best suited to your business. Understanding the differences between these two IT models can significantly impact the efficiency and growth of your business.
In this blog, we will cover the key differences between Managed Services vs Professional Services, their pros and cons, and how businesses might choose between them, offering a comprehensive guide to help you make an informed decision.
What Are Managed Services?
Managed Services involve delegating your company’s IT operations to a third-party provider, known as a Managed Service Provider (MSP), which takes on ongoing responsibility for monitoring, managing, and resolving issues across various aspects of your IT infrastructure.
Managed Services (MS) often include:
- Network monitoring & maintenance.
- Cybersecurity.
- Troubleshooting.
- Data backup.
- Disaster recovery.
- Compliance.
- Cloud management.
- Storage solutions.
Pros of Managed Services
- Predictable Costs: One of the main advantages of Managed Services is cost predictability. Businesses typically pay a fixed monthly fee, which covers all agreed-upon services.
- Proactive Monitoring & Maintenance: MSPs make sure systems are running efficiently and identify potential issues early on before they escalate into serious problems.
- Scalability & Flexibility: As your business grows, Managed Services can easily scale up to meet new demands without investing substantial resources in infrastructure or employees.
- Expertise and Experience: MSPs bring specialized expertise that might be too costly or difficult to maintain in-house.
- Defined Service Level Agreements (SLAs): Clarifying expectations regarding uptime, response times, and other performance metrics.
Cons of Managed Services
- Less Control: Businesses may feel a sense of a loss of control over their operations when they use third-party managed services.
- Potential for Over-Reliance: Managed service providers might have access to more resources than their own internal staff, reducing their decision-making autonomy and internal capabilities.
- Excessive options: It may not be the best solution to take a long-term approach, depending on what needs to be done. You may only need help with one rollout, or your smaller IT team can handle regular updating and maintenance.
What Are Professional Services?
Unlike Managed Services (MS), Professional Services (PS) are usually project-based and one-time efforts when an organization adopts a new technology. These services are usually temporary and focus on particular areas such as implementing, maintaining, and training around specific technologies your organization uses.
Professional Services (PS) often include:
- IT consulting.
- Implementation (hardware or software deployment).
- Data or cloud migration.
- Resource management.
- Project and program management.
- Systems integration.
- Business continuity planning.
- Engineering services.
Pros of Professional Services
- Focused Solutions: Professional Services address a specific issue or problem. Compared to Managed Services, it is more focused and comprehensive.
- Access to Specialized Expertise: Professional Service Providers (PSP) possess a wide range of knowledge and resources that your internal staff may lack, which allows them to help you maximize your technology investments while ensuring accuracy during any implementations or integrations.
- Flexibility: Companies can hire professionals for short-term projects without committing to long-term service agreements.
Cons of Professional Services
- Higher Costs Per Project: As flexible as Professional Services are, they can be more expensive per project compared to ongoing Managed Services.
- Limited Scope: In general, Professional Services focus on specific aspects rather than the broader IT needs of an organization.
- Future Maintenance: You may have to take care of future maintenance and issues on your own if you choose the Professional Services model. Typically, Professional Services end with the completion of the work. Either arrange for them to provide follow-up services or perform maintenance yourself.
What is the difference between Managed Services and Professional Services?
A comparison of managed services vs professional services reveals several key differences:
- Time frame: Managed Services are ongoing and usually based on a contract. These services cover many aspects of an organization’s daily IT needs. However, Professional Services address a specific problem or challenge and are usually project-based.
- Cost Structure: Professional Services typically incur higher one-time costs based on the project’s complexity and duration, while Managed Services provide predictable costs through fixed monthly fees.
- Control & Flexibility: While Managed Service clients receive consistent support, they may have less control over their systems; Professional Service clients have more control but must deal with multiple vendors.
How to Choose the Right Service for Your Business?
When comparing “managed services vs professional services,” some factors should be considered:
- Managed Services might be the best choice for companies that need ongoing support, predictable budgeting, and scalability.
- Businesses needing specialized expertise for specific projects without committing to long-term contracts could benefit from Professional Services.
The best choice varies for each company and hinges on the specific solutions they aim to develop. Other factors to consider are the size, needs, and capabilities of the business. Some organizations are more tech-intensive than others, and some have a larger in-house IT team to rely on. In these cases, Managed and Professional Services can offer unique benefits tailored to each organization’s distinct requirements.
Why Choose DeepSource?
At DeepSource, we understand the unique challenges and opportunities within the IT landscape. Our tailored approach ensures that whether you’re in need of managed IT services or on-demand expertise for one-off projects or short-term changes in your company, our team possesses the right blend of skill and flexibility to meet your demands.
It is important to remember that managed services and professional services are compatible. Having both implemented properly can result in higher consumption, adoption, and renewal rates. This is where DeepSource comes in.
Feel free to contact our representative if you want more information about our services or are unsure of which approach is right for you.
