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28 October 2025Apogee Corporation to Showcase Data‑Driven Workplace Services at Procurex Wales
28 October 2025
IT Outsourcing vs Managed Services: What’s the Difference?
When organisations explore IT support options, two terms appear again and again: IT outsourcing and managed IT services. At first glance, they sound interchangeable, but there are important differences.
In simple terms, managed IT services are an ongoing, proactive partnership where a provider runs and maintains your IT systems, while IT outsourcing typically covers specific functions, projects, or areas of responsibility that are handed to an external specialist.
Here is how they compare, and how to decide which model, or combination, works best for your business.
What are managed IT services?
Managed IT services are a subscription-based model where a third-party provider takes responsibility for monitoring, maintaining, and improving your IT environment.
The focus is not only on fixing problems when they happen but also on preventing downtime, strengthening security, and keeping systems running efficiently every day.
What are outsourced IT services?
Outsourced IT services mean handing over specific IT functions to an external partner. Unlike managed services, outsourcing is flexible in scope. It can cover a single project, provide additional expertise for a limited period, or involve ongoing responsibility for a particular area of IT.
The difference between IT outsourcing and managed services
The main difference between IT outsourcing and managed services lies in scope and responsibility.
Scope
Managed IT services cover the entire IT environment, from day-to-day support to long-term planning. Outsourcing is usually narrower in scope, focused on specific functions or one-off projects.
Responsibility
With managed IT services, the provider takes end-to-end responsibility for your IT systems. With outsourcing, responsibility is defined per project or function, which means it can be shared with your in-house team.
Cost model
Managed IT services are based on predictable monthly or annual subscriptions. Outsourced IT services are more flexible and can be billed on a project basis or according to the specific services used.
Best fit
Managed IT services suit organisations that want continuous, proactive IT support. Outsourced IT services suit those who need targeted expertise, short-term capacity, or support for particular business areas.
|
Managed IT Services |
Outsourced IT Services |
|
|
Scope |
Entire IT environment |
Specific functions or projects |
|
Responsibility |
Provider takes full ownership |
Shared or defined per project |
|
Duration |
Ongoing subscription |
Flexible, short or long term |
|
Best for |
Continuous, proactive IT support |
Targeted expertise or extra capacity |
How managed IT services and outsourcing work together
In practice, many organisations use both approaches. A managed IT service provides a stable foundation, covering monitoring, updates, and everyday support. Outsourcing is then used to bring in extra expertise or capacity when needed.
Scenarios where services work together
- An SME may use managed services as a virtual IT department but outsource a large-scale cloud migration to specialists.
- A mid-sized business might rely on managed services for day-to-day support and outsource cyber security audits for additional protection.
- A large enterprise could have an in-house IT team, supported by managed services for monitoring, and use outsourcing for project delivery during periods of expansion.
Apogee’s advantage is that businesses do not have to choose one or the other. With expertise in both managed services and outsourcing, Apogee can build a blended model that adapts as your needs evolve.
Choosing the right IT support model for your business
You do not always need to choose one over the other. The right option depends on your internal IT resources, your long-term goals, and the level of support you need.
Managed IT Services & Outsourced IT Services FAQs
Is IT outsourcing the same as managed services?
No, they are not the same. Managed IT services involve an ongoing partnership where a provider takes responsibility for the day-to-day running and improvement of your IT systems. IT outsourcing usually covers specific functions, projects, or specialist areas that you hand to an external provider.
Is outsourcing cheaper than managed services?
Outsourcing can sometimes be cheaper in the short term because you only pay for what you use. Managed IT services, however, provide predictable monthly costs and long-term value by reducing downtime and security risks. The best choice depends on your business goals and the level of support you require.
Do small businesses need managed IT services?
Many small businesses benefit from managed IT services because they gain access to an entire IT department without the expense of building one in-house. Managed services help keep systems secure and reliable, while freeing staff to focus on the core business.
Can you use both outsourcing and managed services?
Yes, many organisations use a mix of both. Managed services provide stability and proactive support, while outsourcing adds flexibility for one-off projects or specialist expertise. Providers such as Apogee deliver both, so you can adapt your IT support as your needs evolve.
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