This is a question we’re often asked. They might seem like two sides of the same coin, as both involve handing over some IT tasks and duties to a third party. But in reality, Managed Services and outsourcing are not the same models.
While outsourcing is simply task-driven, Managed Services are a long-term agreement that looks a lot like a reliable and result-oriented partnership. At ACT360, we believe that recognizing the difference is the first step in getting the IT solution that's right for you.
What is Outsourcing in IT?
Outsourcing is the practice of hiring a company outside an organization to perform services that traditionally are performed within. The relationship is often transactional: you pay for something to get done, and once it’s done, the relationship concludes.
- Examples:
- Hiring someone to make you a one-off website.
- Contracting a vendor to migrate email systems.
- Using a third-party for temporary helpdesk overflow.
- Characteristics:
- Short-term or project-based.
- Limited accountability beyond the specific deliverable.
- Reactive: they are there when you ask for them.
What are Managed Services?
Managed services are designed to evolve into proactive relationships. An MSP (Managed Service Provider) is accountable not only for the completion of tasks, but also for the efficient and effective functionality of your IT systems in line with business objectives.
- Examples:
- Servers, networks, and endpoints 24/7 monitoring
- Ongoing compliance checks and cybersecurity protection
- Guaranteed response time for helpdesk support.
- Characteristics:
- Long-term, subscription-based.
- Outcome-driven, not just task-driven.
- Active monitoring, preventative measures, and continuous learning.
“At the end of the day, it’s about accountability. Outsourcing checks things off a list, while Managed Services produces results,” explains Adam Bowles, Director of Web Services and Partner at ACT360.
Managed Services vs Outsourcing: Key Differences
| Aspect | Outsourcing | Managed Services (MSP) |
| Engagement Type | Task-based, project-focused | Ongoing, subscription-based |
| Approach | Reactive, “fix when broken” | Proactive, continuous improvement |
| Accountability | Vendor is responsible only for tasks | MSP is accountable for outcomes & uptime |
| Cost Structure | Hourly or per-project | Fixed monthly fee |
| Focus | Narrow IT tasks | Full IT strategy + daily operations |
| Value | Short-term relief | Long-term business alignment |
When Outsourcing Makes Sense
Outsourcing is the right choice in a variety of scenarios, such as:
- Specialized expertise required for a one-time project (e.g., implementation of a new ERP).
- Temporary staff cover during peak workload periods.
- Savings on jobs you don’t need for the long-term.
However, outsourcing has limitations. It is missing long-term monitoring, and it does not align IT needs with business needs.
When Managed Services Are the Better Fit
Managed Services are ideal when your business:
- Wants predictable IT costs with a monthly subscription.
- Wants to prevent rather than fix.
- Requires compliance and cybersecurity protections.
- Is on the rise and requires cost-efficient IT services.
- Wants an IT partner, not a contractor.
Managed Services treats IT like a strategic enabler (and not a hodgepodge of stuff you outsource).
Can Outsourcing and Managed Services Work Together?
Yes. Lots of businesses have a foot in both camps. Here, outsourcing often means taking care of special projects, and then MSPs handle your day-to-day IT operations. At ACT360, we often advise on IT strategy, maintain core systems, and engage with key partners when the most specialized projects are needed.
This hybrid structure provides the best of both worlds: rights to flexibility and continuity.
Conclusion
So, to answer your question: are Managed Services the same as outsourcing? No.
Outsourcing is about getting tasks off your plate; Managed Services are about delivering outcomes and long-term value.
Ready to move beyond task outsourcing and into a true IT partnership?
Discover ACT360’s Managed IT Services
