What Are Managed Services?
In today’s fast-moving business world, technology isn’t just a support function it’s a competitive differentiator. That’s where managed services come into play. In their broadest sense, managed services refer to the outsourcing of responsibility for maintaining and anticipating the need for various processes and functions, with the goal of improving operations and reducing costs.
When we narrow the focus to IT, Managed IT Services (often abbreviated as “managed services” or “MSP services”) mean a third-party provider takes on responsibility for a range of IT tasks from network monitoring to help-desk support to cybersecurity under a formal arrangement (such as a service-level agreement, or SLA).
Let’s unpack what this means, why it matters, the different types you’ll find, how to evaluate them, pros & cons, pricing models, and finally field some common FAQs.
Why Do You Need Managed IT Services?
There are several compelling reasons for businesses (especially small to mid-sized ones) to adopt managed IT services:
- Cost predictability & efficiency: Instead of unpredictable “break-fix” costs (pay when something breaks), a managed services model offers a flat or tiered subscription model, making budgeting easier.
- Access to expertise you might not have in-house: Many companies cannot afford to hire and retain high-level IT talent, yet still face cyber-threats, cloud migration, compliance needs, etc. An MSP brings that expertise.
- Proactive vs reactive: Instead of waiting for things to go wrong, managed services providers (MSPs) monitor, maintain and fix issues before they cascade. That means less downtime, fewer surprises.
- Scalability & flexibility: As your business grows (or shrinks), your IT demands change. Managed services allow you to scale accordingly without overhauling your entire infrastructure.
- Focus your internal team on strategic work: When day-to-day IT maintenance is outsourced, your in-house people can focus on projects, innovation, customer experience rather than firefighting.
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What Types of Managed IT Services Are There?
Here are the common types (and sub-types) you’ll see when engaging with an MSP:
- Network & infrastructure monitoring/management
- Continuous monitoring of servers, networks, endpoints.
- Performance optimization, hardware refresh, patch management.
- Help desk / end-user support
- Tier 1, Tier 2 troubleshooting for employees, devices, Apps.
- Remote support, mobile device management (MDM).
- Cybersecurity & compliance management
- Firewalls, threat detection, endpoint protection, vulnerability scanning.
- Regulatory compliance (GDPR, HIPAA, PCI-DSS, etc.) depending on industry.
- Cloud services & migration management
- Oversight of cloud infrastructure (AWS, Azure, Google Cloud), migrations, optimization.
- Business continuity / disaster recovery (BCDR)
- Backup management, replication, recovery plans to minimize downtime.
- IT strategy & consulting
- Helping align IT roadmap with business goals, vendor management, technology planning.
- Other specialized services
- Managed print, managed mobility (devices), unified communications, etc.
In short: managed IT services cover everything from “keep the lights on” support to strategic digital innovation, depending on the scope of the provider you choose.
The “Different Types of Managed Services” (Beyond IT?)
While this blog is focused primarily on IT, it’s worth noting that the managed services model can extend beyond pure IT. For example:
- Managed security services (MSS) – specializing exclusively in cybersecurity.
- Managed mobility services (MMS) – specifically for mobile devices and field-force management.
- Other business process managed services (e.g., marketing, logistics, HR) – though IT is where it’s most mature.
Understanding that a broader scope helps you compare service models, pricing, and positioning.
How Do Managed IT Services Work? The Service Model
Here’s the usual way it works:
- You contract with a provider (an MSP) under a Service Level Agreement (SLA) that defines what services you receive, metrics (response times, uptime guarantees), responsibilities, and cost.
- The MSP takes over defined IT functions (monitoring, help desk, updates, etc).
- They monitor infrastructure and endpoints around the clock (or as agreed), detect issues, fix them remotely, escalate when needed.
- They periodically report to you with metrics (uptime, issues resolved, support tickets, cost savings) so you understand performance.
- Because of economies of scale, the MSP can deliver these services more efficiently than you might internally especially for smaller organisations.
- You pay typically a regular recurring fee, often per-user or per-device, or “flat-fee” tiers instead of unpredictable reactive bills.
Pros & Cons
- Predictable IT costs: No wild swings in hardware failure costs or emergency fixes.
- Improved uptime & system health: With proactive monitoring and maintenance, issues get fixed before they become big.
- Access to best-practice IT & security: You get external expertise, tools, and processes that might cost far more to build internally.
- Focus on your business: Internal staff freed from mundane IT tasks can aim at innovation, growth, and service delivery.
- Scalability: Easy to adjust as you grow, add devices/users, etc.
The Challenges / Things to Watch
- Vendor dependency or lock-in: When the MSP becomes core to your operations, switching may be disruptive.
- One-size-fits-all service packages: Some providers may offer generic solutions not tailored to your industry or specific business needs.
- Accountability / SLA misalignment: If SLAs aren’t well defined you might end up paying for services that don’t meet business expectations.
- Loss of internal control: Some businesses feel they lose visibility or control when critical IT tasks are outsourced.
- Cost vs value trade-offs: While often cost-effective, you must be paying for the right services and not redundant ones.
How Does Pricing Typically Work?
The pricing models for managed IT services vary, but here are the most common:
- Flat-fee / subscription model: A fixed monthly fee for a defined set of services (e.g., monitoring + help-desk + patching) with additional tiers for more advanced services.
- Per-user or per-device pricing: You pay based on number of users/devices on the contract.
- Tiered services: Basic, standard, premium packages – higher tiers include more advanced services (e.g., full cybersecurity, cloud consulting).
- Hybrid models: Some services might be fixed fee while others are usage-based (e.g., backup storage, incident response).
- Setup/on-boarding fees: Initial migration, assessment, onboarding may incur one-time costs.
When evaluating providers, it is critical to understand what’s included (and what’s not) in the monthly fee, what happens when you exceed defined limits, and how scalable the model is.
Choosing the Right Managed IT Service Provider (MSP)
Here are key factors to evaluate:
- Industry expertise and relevance – Does the MSP have experience in your industry (manufacturing, healthcare, services)? That matters because regulation/security needs differ
- Service level agreements (SLAs) – Are uptime, response times, and escalation processes clearly defined?
- Flexibility & customization – Can the provider tailor services to your organization rather than offering a generic “box”?
- Transparency & reporting – Will you receive regular reports on performance, metrics, cost savings, and issues?
- Security posture – Does the MSP have strong cybersecurity expertise (which is increasingly critical)?
- Scalability & support for growth / remote/hybrid work – As your team grows or relocates, will the service adapt?
- Culture & fit – The relationship with your MSP matters. They should feel like a partner, not just a vendor.
- Transition/exit strategy – How easy (or hard) is it to change providers in the future? What are the dependencies?
FAQ
Q: What exactly is the difference between “managed services” and “managed IT services”?
A: “Managed services” is a broad term that applies to outsourcing of processes/functions (not just IT). “Managed IT services” is specifically about outsourcing IT functions (networks, endpoints, security, cloud, help-desk). As noted, managed services can extend beyond IT into security, mobility, and business processes.
Q: Is outsourcing to a managed services provider cheaper than having an in-house IT team?
A: Usually yes, especially for small to mid-sized organizations. The MSP model provides economies of scale, predictable budgets, and avoids the capital and hiring costs of building a full internal team. However, cost alone shouldn’t be the only factor—the value, service quality, and security posture matter just as much.
Q: My company already has an internal IT team. Can we still use an MSP?
A: Absolutely. Many organizations adopt a co-managed model where the MSP handles certain functions (e.g., 24/7 monitoring, cybersecurity, backup) while internal staff focus on strategic initiatives. The MSP augments your team, rather than replaces it.
Q: What are the risks of using a managed IT services provider?
A: As touched on above: vendor dependency, lack of personalization, unclear SLAs, loss of control, and potential cost creep if services aren’t clearly defined. It’s crucial to choose a partner wisely, define a clear scope, and maintain governance.
Q: How do I know when my business is ready for managed IT services?
A: Some indicators:
- Your team is spending too much time on reactive fixes/maintenance rather than strategic work.
- IT outages or performance issues are impacting productivity or customer experience.
- You lack in-house expertise for cybersecurity, cloud, compliance, remote/hybrid support.
- Your IT costs are unpredictable or rising faster than the budget.
- You’re planning growth, expansion, new locations, or digital transformation and want predictable, scalable IT support.
Q: What’s included in a typical managed IT services contract?
A: It varies, but typical inclusions are: remote monitoring, help-desk support, patch management, security monitoring, backup & recovery, cloud management. The contract will specify what’s not included (e.g., major projects, hardware replacement, on-site support) and how pricing escalates.
Conclusion
The evolution of IT from a cost centre to a strategic driver means organizations cannot afford to neglect the quality, reliability and security of their technology stack. Managed IT services offer a proven model to outsource the “keeping things running” part of IT, freeing your business to focus on innovation, growth and customer value.
By selecting the right MSP partner with transparent service levels, appropriate expertise, cost model and scalability, you can turn your IT from a drain into a foundation for growth.
Todd Eldron
Todd Eldron is an accomplished information technology professional with over 15 years of experience guiding organizations through digital transformation initiatives. His work focuses on implementing effective strategies to enhance cybersecurity, optimize operational performance, and adopt emerging technologies responsibly.
