Explore Our Resources | Enterprise IT & Telecom Blog | Tailwind

Managed Services vs. Professional Services

Written by TailWind | Oct 2, 2024 3:15:00 PM

Is your organization feeling the pressure to keep up with the ever-changing world of IT? You're not alone. Many companies today are struggling to stay on top of their technology needs while also focusing on their core business. This is especially true when it comes to having the right people with the right skills on your team.

A 2024 report found that nearly half (44%) of IT leaders say talent issues are the biggest obstacle to achieving their department's goals, with 64% pointing to skill gaps and training as their company's most significant talent-related challenges.1

These numbers paint a clear picture: IT teams need help. Many are turning to outside experts to bridge the gap and keep their technology running smoothly. Two popular options are managed services and professional services, but how do you know which is right for your business? Read on to explore what these services offer and how to determine which might be the best fit for your organization's needs.

What Are Managed Services?

Managed services involve outsourcing IT functions to a third-party service provider on an ongoing basis. This approach lets companies focus on their core competencies while ensuring their IT infrastructure remains robust and up-to-date.

Here's what you typically get with a managed service provider:

  • Day-to-Day IT Support: Remote support to help your IT team manage routine tasks.
  • Troubleshooting: Quickly identify and resolve IT problems to keep your business running smoothly.
  • Administration: Manage user accounts, permissions, and system settings.
  • Security: Implement and maintain cyber security measures to protect against threats.
  • Network Monitoring: Monitor your network to catch problems before they become issues.
  • Cloud Management: Oversee cloud services and ensure optimal performance.
  • Onboarding: Get new employees set up and integrated into your IT systems.
  • Data Backup and Disaster Recovery: Ensure your data is backed up and create plans to recover from potential disasters.

Leveraging a managed service provider can ensure your technology infrastructure stays stable, secure, and aligned with your business needs. It's like having a proactive IT department that's always looking out for you.

What Are Professional Services?

Professional services are typically project-based engagements focused on handling particular IT challenges or implementing new technologies. These services supplement an organization's in-house teams by providing experts with specialized skills in specific areas of technology.

Common professional service offerings include:

  • Consulting: Provide expert advice on IT strategy, architecture, and best practices.
  • Deployments: Plan and execute the implementation of new hardware or software solutions.
  • Cloud Migrations: Assist businesses in moving their data and applications to cloud-based environments.
  • Engineering Support: Offer specialized technical expertise for complex IT projects or challenges.
  • Asset Audits: Conduct assessments of an organization's IT assets and infrastructure.

A professional service provider can help your enterprise access high-level expertise for transformative projects without the need to maintain specialized knowledge in-house. Think of these services as calling in the specialists for specific tech missions.

How Do Managed Services and Professional Services Differ?

While both managed services and professional services aim to support your IT needs, they differ in several important ways. These differences include:

Scope of Work

The scope of managed services is broad, as they cover various aspects of IT service management. They provide ongoing support for your entire IT infrastructure to ensure smooth operations and address issues as they arise.

Professional services focus on specific projects or initiatives with clearly defined objectives. The scope is typically narrower and more specialized, addressing particular challenges or implementing new solutions within a set timeframe.

Service Delivery

The managed services model provides continuous, around-the-clock monitoring, maintenance, and support services. This proactive approach aims to prevent issues before they occur and ensure consistent performance of your IT systems.

Professional services are delivered on a project basis, with a clear beginning and end. The service provider collaborates closely with your team on the specific project to achieve the desired outcomes.

Time Frame

The time frame for managed IT services is ongoing, with contracts typically spanning one or more years. This long-term relationship allows your service provider to continually improve and adapt their IT services to meet your business needs as they evolve.

Professional services have a defined timeline that often lasts weeks or months, depending on the project's complexity. They conclude once the project is complete, although the service provider may offer follow-up support.

Pricing Structure

Managed services usually operate on a subscription basis, where your business pays a recurring fee for the ongoing services provided. This predictable structure allows you to budget effectively for your IT needs.

Professional service offerings are typically billed based on the project scope, either at a fixed rate or on a time-and-materials basis. The pricing reflects the specialized nature of the work and the resources needed to complete the project successfully.

Expertise and Skill Sets

A managed services provider typically includes a team of IT generalists who are skilled in a range of technologies and can handle day-to-day IT tasks. These professionals excel at routine maintenance, troubleshooting, and ensuring overall system health.

Professional service providers often bring in subject matter experts with expertise in specific areas of technology. These could include cloud migration specialists, cyber security experts, or network engineers who are brought in to address complex challenges or implement cutting-edge solutions.

Choosing the Right Service for Your Business

It's worth noting that you don't always have to choose between managed services and professional services. In many cases, companies can benefit from a combination of both approaches. Some projects might start as a professional service engagement and then transition into ongoing managed services once completed.

Determining which service is most right for your business will depend on several factors, such as:

In-House Capabilities

Take a look at your current IT department's skills and capacity. If your internal teams are stretched thin or lack expertise in specific areas, a managed service provider can offer valuable ongoing support. This approach can help fill gaps in your team's knowledge and allow them to focus on more strategic initiatives.

For specialized projects beyond your team's capabilities, professional services may be the better choice. These services can bring in experts who have real-world experience in particular technologies or methodologies to make sure complex projects are executed efficiently and effectively.

Project Scope

Think about the nature and scope of your IT needs. If you require continuous support and maintenance for your entire IT infrastructure, managed services offer a comprehensive solution. This option is especially suitable for businesses that want to ensure their systems are always up-to-date, secure, and running smoothly without having to manage these tasks internally.

For targeted initiatives or one-time projects, such as a major system upgrade or cloud migration, professional services are the way to go. These services provide the resources needed to complete specific projects within defined time frames. Consider creating a roadmap of your upcoming IT initiatives to determine which projects might benefit from professional services and which areas require ongoing support through managed services.

Level of Control

Consider how much control you want to maintain over your IT operations. Managed services providers offer a hands-off approach, allowing you to delegate day-to-day IT management to a trusted partner.

Professional services offer more direct involvement during IT projects while leaving ongoing management to your in-house team. This approach lets you maintain control over your overall IT strategy while leveraging external expertise for particular initiatives.

Budget

Evaluate your IT budget and consider how different service models align with your financial planning. Managed services typically offer predictable monthly costs, which can be beneficial for long-term budgeting and financial forecasting. This model can also help reduce unexpected IT expenses by preventing issues before they become costly problems.

Professional services are potentially more expensive in the short term, but they can provide substantial value for specific IT projects. Consider the potential return on investment for professional services, such as improved efficiency, security, or capabilities that could drive business growth.

TailWind: Your Enterprise Professional Services Provider

Keeping up with technology can feel like an uphill battle, especially when your IT resources are stretched thin. Third-party service providers can lighten the load – but whether you need a steady hand to guide your day-to-day IT operations or a team of experts to tackle a complex project, the key is finding the right fit for your business.

TailWind offers a suite of professional service offerings to make multi-location business IT simple. Our experts bring decades of experience to the table to ensure that even your technology projects are completed on time.

Our professional service offerings include:

  • Advisory Services: We leverage our extensive enterprise IT experience to deliver the best solutions at the best prices.
  • Asset Audits: We'll provide you with a clear picture of your IT environment in a formal deliverable.
  • Project Management: Our project managers work with your team to coordinate and manage your entire project.
  • Engineering: Our network experts can help you tackle even the most comprehensive multi-location projects.
  • Structured Cabling: We manage every aspect of your network or telecom cabling installation project.
  • Demarc Extensions: We'll execute timely demarc extensions, whether you’re upgrading your circuits or need a new build.

Ready to de-stress your enterprise IT? Don't let technology challenges hold your business back. Reach out to TailWind today to get started with a dedicated, ultra-responsive team from day one of your next project.

Sources:

  1. https://www.gartner.com/peer-community/oneminuteinsights/2024-it-priorities-challenges-insights-field-vf2