Managed Services vs. Professional Services: What You Need to Know

If you are having trouble navigating the different types of IT services and making the best choice for your business, you’re not alone. In fact, 43% of businesses like yours are wrestling with the same issue.

“Finding the right IT services for your business goes beyond simply making choices,” explains Julio A., Vice President of Operations for Tenecom. “It’s about discerning the perfect alignment for your unique requirements.”

The debate on which kind of services to choose typically centers around two predominant models: managed services and professional services.

Each option offers a suite of invaluable services, whether you need them for consistent long-term support or specific short-term initiatives, bridging skill and knowledge gaps and driving projects to fruition.

In this article, we’ll explore the many differences between managed services vs. professional services to equip you with the insights you need to make the best possible decision for your business.

 

Managed Services vs. Professional Services: Which Do I Need?

Overcome specific challenges with managed and professional services from Tenecom.

 

A Glimpse Into Managed IT Services

When technology management becomes a significant burden for you and your team, the responsibility can be handled by managed IT services.

An increasing number of companies are making the shift to managed services, resulting in a booming market that was worth $312.72 billion in 2022, and is reported to be valued at $757.1 billion by 2030, thanks to a compound annual growth rate (CAGR) of 12.6%.

Managed services are typically offered on a long-term basis, encompassing a comprehensive array of IT functions. They revolve around maintaining the day-to-day operations and ensuring the optimal performance of your IT systems and networks.

Based on the provider you partner with, you’ll either receive a fixed-term contract or a month-to-month subscription that allows for more flexibility.

 

What Managed Services Offer

The objective of managed IT services is to provide ongoing support, ensuring your day-to-day business operations run smoothly. These services, usually delivered by a managed services provider (MSP), include a vast range of offerings, such as:

Ongoing Management: This is all about ensuring a proactive approach, from regular system updates to ensuring cybersecurity measures.

Network Monitoring: Continuous surveillance of your IT infrastructure to preemptively catch and resolve issues.

Data Backups: Vital for safeguarding your company’s precious data and ensuring business continuity.

 

Why Choose Managed Services?

When you’re looking for a consistent IT support structure to handle everyday challenges and maintain operational efficiency, managed IT services are your best option..

 

The Benefits of Managed Services

Managed IT services offer several advantages for small and medium-sized businesses like yours. They also offer continuous support and rapid response times that accelerate problem-solving while significantly reducing costly disruptions and downtime.

 

Managed Services vs Professional Services

Source: Precedence Research

 

A Closer Look at Professional Services

While managed IT services offer continual support, professional IT services come into the picture for specific challenges. The nature of professional services is typically:

Project-Based: Designed for short-term, outcome-oriented tasks.

Customized Solutions: Tailored to address your unique IT issues or implement specific projects.

Some examples of professional services include IT system integrations, technology audits, and custom software development.

Similar to the managed IT services market, the professional services market is also slated to expand. In 2021, the market was worth $5.43 trillion in 2021, and that value is expected to increase to $7.06 trillion in 2025 with a 7% CAGR.

 

Why Choose Professional Services?

When you have a clearly defined scope of work and you need specialized expertise for a finite period, professional IT services are your best bet. They offer a targeted solution to specific IT challenges.

 

What Professional Services Offer

Professional services typically cover consultative or project management-based tasks. They are designed to complement your in-house team by providing specialized expertise, enabling them to zero in on their primary responsibilities as external experts steer the project to completion.

 

The Benefits of Professional Services

Businesses are drawn to professional IT services for various reasons. For example, they offer time-saving solutions, allowing you to concentrate on your daily functions.

They also serve as a gateway to a broader spectrum of specialized expertise and introduce you to advanced tools that are indispensable for certain projects.

You’ll also enjoy financial savings from bypassing the need for staff training, accelerated project delivery, unwavering support, and expert guidance to ensure a seamless journey from a project’s initiation to its conclusion.

Additionally, their reliance on short-term engagements that typically span the lifecycle of a project becomes helpful when you are looking for a distinct skill set for a particular initiative.

 

Contrasting Managed Services vs. Professional Services

The crux of the debate between managed services vs professional services lies in understanding their fundamental differences.

Duration and Engagement: Managed services provide long-term consistent support, while professional services offer short-term, specialized assistance.

Nature of Service: Managed services cater to everyday IT needs, ensuring seamless operations. On the other hand, the nature of professional services addresses unique challenges, often on a project basis.

Pricing: Managed services pricing model is generally subscription-based that offers flat fees, while professional services can vary by the project. The exact cost usually depends on the scope of work provided. The exact cost usually depends on the scope of work provided.

 

Choosing Between the Two

While the differences between managed and professional services are clear, the decision is not always black and white. Consider the following:

Your IT Challenges: Is it an ongoing issue or a one-time project?

Budgetary Constraints: As described above, managed services typically have a predictable billing model, while professional services are often project-based.

Long-Term vs. Short-Term: Analyze your immediate needs and future scalability.

 

A Quick Comparison of Managed Services vs. Professional Services

AspectManaged ServicesProfessional Services
Nature of ServiceOngoingProject-based
DurationLong-termShort-term
ScopeBroad (e.g., network monitoring)Specific (e.g., software development)
Billing ModelSubscription-basedTask or project-based

 

Interested in learning more about managed and professional IT services? Check out these blogs:

 

Managed Services vs Professional Services

 

Managed Services vs. Professional Services: Make the Best Choice for Your Business Today

Choosing between managed and professional services can be difficult. However, understanding the distinctions between managed services vs. professional services is vital in aligning your technology strategy with your business’s goals.

As one of the Greater Toronto Area’s leading managed services providers since 1986, Tenecom delivers an excellent combination of both managed and professional services designed to bolster your enterprise.

Whether you need help with day-to-day IT management or need expert insight for a critical project, our team of seasoned professionals is always ready to step in and assist you.

Get more information about our full range of managed and professional IT services by contacting us today to schedule a free consultation.

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