Often business owners mistakenly use the terms outsourcing and managed services interchangeably. They think both have a similar meaning. Hope you are not among those. Or are you?
Even if you are confused between the two, let me clarify the meaning between outsourcing vs managed services altogether here in this blog. Here you’ll find a complete discussion of both these terms along with some consideration. This will help you determine what kind of services you need when you hire a third party to delegate your tasks.
Let’s get into it.
What Outsourcing Means?
The concept of outsourcing is built to release pressure from business heads. It’s an outstanding idea where businesses do not have to depend on their in-house resources. They can outsource anything from talent to business processes, literally everything. In outsourcing, businesses can choose a specific task to be done via any expert external partner.
Outsourcing is a great way to get whatever your business requires without depending on locally available resources. It widened the business boundaries as you can hire anywhere from the globe. Depending on the distance, outsourcing is subcategorized under different brackets; which are – onshore, nearshore, and offshore.
What is Managed Service?
Let’s back to the outsourcing vs managed services debate. Here, managed services cover more comprehensively than outsourcing when the business has not figured out what it needs. Instead of supporting a few specific business processes, managed services cover more comprehensively. For example, if your business needs some ERP data management needs, a managed service provider would have to offer you a few more detailed solutions. Probably they might offer you document data entry, offline data entry, online data entry, and other related services.
Outsourcing vs Managed Services – Main Considerations
Top Reasons to Choose Outsourcing
The first point when we differentiate outsourcing vs managed services, outsourcing gets a brownie point because of its focused support. Generally, companies outline their needs before going for outsourcing. There are many reasons to choose outsourcing, but I’m highlighting the basic points here.
There is nothing better than outsourcing when it comes to getting specialized core solutions. Sometimes your in-house team may face difficulties in handling certain tasks. Then when you need to break the deadlock through any specialized this-party contact. Outsourcing partners can help you handle your core tasks. They are specially skilled and developed to help companies with their specialized solutions.
A recent study done by ISG finds that outsourcing saves on average 15% of total business costs. Outsourcing directly reduces overhead costs for businesses. You do not need to build an infrastructure to get your work done. A remote team will handle all your tasks at their level for you. For the payment, you just need to pay a nominal amount, which is much less than any in-house team that you build your own.
Want to go to the next level? Maybe outsourcing can help you with that. Outsourcing companies constantly upgrade their research, use the latest technology, and work with skilled people. They can genuinely help you push your business to the next level.
Operating an in-house team is tough, especially when you need 24/7 support. Often businesses pay extra to keep the system alive for round-the-clock operations. However, this burden will go down when you choose outsourcing. In data operations, the operation time matters the most. If you outsource data entry companies, you can get constant support there 24/7.
Top Reasons Where Managed Services Fit Better
Covering up business needs comprehensively is all that every business owner wants. However, sometimes they stuck to choosing what they genuinely need to run their operations. At that time, managed services come into play and cover the operation comprehensively. Again, I have listed down the reasons why a business must get managed services here.
Outsourcing vs managed services comes to a serious point when businesses demand comprehensive support instead of specialized help. Managed services exactly help businesses scaling up operations and gain more potential. They offer related services that fit your operations and scale up overall.
Getting managed services syncs the entire operations in order. Businesses can seamlessly navigate their way to optimize the process and take benefits from it. It happens because managed services offer better opportunities to explore. Apart from that, they are more flexible than outsourcing.
As a business owner, you might not have any idea how your business will work, at least at the initial stage. To avoid any type of downtime, you must ensure that your operations get on the right track. Managed services are one of the best options that allow you to do so. It offers you a variety of options that comprehensively cover your business needs.
What to Choose Then?
Before you form any opinion on outsourcing vs managed services, here is one thing you must understand. The service you want depends on the stage of business that you are in. Either outsourcing or managed services, you have to allow third parties to manage your operations.
Managed services will suit your operational needs if you still have not figured out what kind of services you need. Your managed service partner will guide you in selecting the right type of services that will boost your operations. However, outsourcing, on the other hand, works wonders in every case. The only thing here is you have to state your requirement first only then you can proceed.
Anyway, at AskDataEntry, we are covering primarily outsourcing services. We offer data entry, data processing, data conversion, and other related services. If you want to outsource any data entry-related services, feel free to contact us here.
