The Difference Between Managed Services and Outsourcing

Feb 16, 2022

Managed Service and Outsourcing

With so many options on how to improve your business processes, many companies are often in the middle of so many choices, which can lead to confusion and not being able to find the most optimal solution that is a tailored fit for their business.

Often, offshoring and managed service come to mind when trying to find the solutions that could enhance your business operations.

While offshoring can be beneficial to most companies, these terms can be quite confusing to some. Understanding the difference between managed service and outsourcing can provide clarity on which business process solution is the right fit for you.

Let's start with the basics by understanding the definition and role of outsourcing and managed service.

What is Outsourcing?

Outsourcing

According to Statista, the global market for BPO services and outsourcing amounts to over 95.2 billion US dollars and has been one of the most in-demand business services globally.

Outsourcing in the IT industry also means growth for businesses that engage with it. They can easily optimize their business growth and can lead their clients through the digital transformation that is necessary for the company.

Outsourcing also promotes product and service diversity as it allows companies to tailor-fit their requirements according to the current situation of the business or towards specific projects.

Outsourcing a team of dedicated experts for certain roles and projects can help your business achieve not only improved methodical business processes but also increase the opportunity of increasing profitability as outsourcing can be more cost-efficient than hiring locally.

As much as outsourcing offers flexibility, there can be situations where companies and businesses would like to take control of the arrangements between their business and their offshore team.

This likely happens when companies are looking into improving specific projects or processes.

This solution is known as managed service.

The distinction for managed services vs outsourcing, has confused many of the professionals.

But what is Managed Service?

In comparison to/of outsourcing, managed service is a business model and solution where you can easily customize the offshoring solution that you would like to have for your business according to your own rules and specifics.

Managed Services providers give access to client companies to their offshore team of specialists.

This means from the hiring process up to the briefing and day-to-day operations of their offshoring service.

This type of managed service method allows your business to maintain a good relationship with your offshoring provider, as it establishes trust in allowing the offshore team to accomplish your business goals.

Through managed service, the local team of your business can also focus on increasing their productivity and allocate their efforts towards high-value tasks while their offshore counterparts can take more on the administrative and repetitive daily tasks like data encoding on their behalf.

What is a managed service provider?

There is no managed service and outsourcing solutions without the provider of service itself.

A managed service provider should be able to offer you a dedicated team of experts that you can easily deploy and integrate into your specific business processes.

While clients handle the hiring process of this type of managed service, your provider should be able to also filter through and provide you with the best candidates that are fit for the task and also the company culture that your business upholds.

Your managed service provider should also be able to provide your business with access to the latest, if not the most effective, software and hardware that can enhance the way you work.

Your offshore team gained from this type of managed service is also available to you virtually and has the same flexibility and be able to cater to your customers or your operational hours no matter where you are in the world.

What are the types of managed service offerings?

While both managed service and outsourcing solutions aims to help businesses achieve scalability.

Managed services has 2 types of service offerings. The best advantage of client-managed service is that it is fully customizable and can be catered to your preference and distinction.

There are also different managed services you can avail yourself of.

Fully Managed

Fully Managed Service

This is a type of managed service where your offshoring provider will take care of your day-to-day operations as well as how your team works around in your processes and projects.

Your offshore team will also be in charge of managing your business KPIs and protocols, depending on the result that you would like your business to achieve.

This type of managed service is often considered by companies who would like to inject more expertise in improving their business processes or have the flexibility to reach out to markets beyond their borders.

Client Managed Service

Client Managed Service

This type of managed service is where the client has full control of how their offshoring set-up will be like. It provides the most flexibility out of all the offshoring solutions as it also gives back control to the client.

It means the client has full control over the day-to-day operations and manages all directives for the team’s workflows, KPIs, and protocols.

This is perfect for companies who would like to have more flexibility and cost-efficiency or very specific expertise integrated into their system.

This is also perfect for businesses who would like to still ensure quality by injecting additional help and human resources into their existing systems.

What are the distinctions between managed service model vs outsourcing?

While there is no right and wrong answer on which managed service, you should have your business engaged with.

It is always a matter of finding the best-managed service model that fits your goals and aspirations as a business.

This could bring out the best in your business and achieve great profitability and growth in just a short amount of time.

But the difference between managed services model and outsourcing is predominantly the setup and chain of command with working with teams and daily operations.

Both still present significant advantages and similarities, like access to industry experts, effective tools to improve your business, flexibility, and time and cost-efficiency.

The best way to determine which managed service is the best for your business is best to sit and discuss with your managed service provider and let them know what you want to achieve in acquiring this type of service.

There are many ways in how different offshoring solutions can help you maximize profitability through managed services.

Managed service providers allows you to recruit according to your specific requirements, as your offshore team should always reflect your company's DNA.

Managed services offerings usually come with high expertise and value for those looking into improving their business processes and workflows with a long-term effect.

No company is the same and the right service can only be determined depending on the level of need that you have in your business.

Offshore Business Processing (OBP) has a proven track record in freight forwarding offshore services that not only work but can increase your productivity and reduce your costs by up to 80%.

Subscribe to our Newsletter

Get all our latest news, updates and exclusive offers delivered straight to your inbox.

Data Privacy Policy

Offshore Business Processing values, and respects the Privacy Rights of our Clients, Client's Customer, Business Partners, Contractors, Personnel, and other identifiable individuals or collectively "Individuals".

We are committed to protecting the privacy and confidentiality of Personal Data through adherence to our Data Privacy Principles and the implementation of reasonable and appropriate security measures to ensure fair, appropriate, and lawful processing.

Background and Scope

Offshore Business Processing as a global service provider goes beyond the borders of the residing countries. The global market requires not only the availability of communication, technology, and information systems but also the integrity and confidentiality of processing information including the Personal Data of Individuals that can be reasonably be determined from the information available.

This Data Privacy Policy sets the principles which emphasize the Offshore Business Processing's standard practices for the processing of Personal Data of Individuals. This Policy applies to all personnel and accredited 3rd party service providers who must act consistently with the principles contained in the policy. Domestic and industry-specific privacy statutory laws and regulations shall take precedence over this policy, to the extent applicable within the confines of conflicts of law principles.

Privacy Notice

This privacy notice describes the privacy practices for www.offshorebusinessprocessing.com. This applies to the Personal Information collected by this website. It will notify the user of the following:

  • What personally identifiable information is collected from the user through the website, how it is used, and with whom it may be shared.
  • What choices are available to you regarding the use of your data.
  • The security measures in place to protect against the misuse of information.

How the user can correct any inaccuracies in the information.

Policy Changes on Websites

Any changes to our Data Privacy Policy and Privacy Notice will be made available on our website. If there are changes to how we treat our users' Personal Information, we will notify them via email or put a notification on our website.

The Personal Information/Data we hold about the users must be accurate and up to date. It is the responsibility of the users to ensure that Offshore Business Processing has up-to-date and accurate Personal Information and an active email address for your website update subscription.

What is Personal Information

Personal Information is any information whether recorded in a material form or not, from which the identity of an individual is apparent or can be reasonably and directly ascertained by the entity holding the information or when put together with other information would directly and certainly identify an individual.

Personal Information we collect on our website is First and Last Name, Email Address, Phone Number, and Company through our "contact us" page.

How and Why Do we Collect It?

Aside from our website, we obtain Personal Information in many ways including interviews, correspondence, by telephone and facsimile, by email, from your website, from media or publications, from social media, from other publicly available sources, from our website cookies, and third parties.

We collect your Personal Information for the primary purpose of providing our services to you, providing information to our clients, and marketing. We may also use your Personal Information for secondary purposes closely related to the primary purpose, in circumstances where you would reasonably expect such use or disclosure. You may unsubscribe from our mailing or marketing lists at any time by contacting us in writing.

When you visit our website, www.offshorebusinessprocessing.com, we automatically collect certain information about your device, including information about your web browser, IP address, time zone, and some of the cookies that are installed on your device. Click here to know more about our Cookies Policy. Additionally, as you browse the Site, we collect information about our web pages that you view, what websites or search terms referred you to the Site and information about how you interact with the Site. We refer to this automatically-collected information as "Device Information".

This website may include links to third-party websites, plug-ins, and applications. Clicking on those links or enabling those connections may allow third parties to collect or share data about you. We do not control these third-party websites and are not responsible for their privacy statements. When you leave our website, we encourage you to read the privacy notice of every website you visit.

Disclosure

Your Personal Information may be disclosed in some circumstances including the following:

  • Third parties where you consent to the use or disclosure; and
  • Where required or authorized by law.

Retention and Security Measures

Only authorized personnel has access to Personal Data and will be retained and disposed of in accordance with Offshore Business Processing's retention and disposal policies, guidelines, and applicable laws and regulations.

Offshore Business Processing implements appropriate and reasonable Technical, Organizations, and Physical Security Measures throughout the Data Life Cycle of the Personal Data that is collected. This involves preventing or at least reducing the probability of unauthorized/inappropriate access to data, or the unlawful use, disclosure, modification, and deletion to protect its confidentiality, integrity, and availability.

Quality of Personal Data and Access

It is important that Offshore Business Processing holds accurate, complete, and up-to-date Personal Data of identified Individuals. It is the responsibility of the Individuals to ensure that collected Personal Data is accurate, complete, and up-to-date. If the Individuals find that the Personal Data is outdated and inaccurate, they should advise Offshore Business Processing as soon as practicable so an update on records can be done and continued quality services will be provided.

Individuals may access, update and or correct the Personal Data by sending a letter of request subject to the approval of the management. Offshore Business Processing will not charge any fee for your access request but may charge an administrative fee for providing a copy of your Personal Data. To protect your Personal Data, we may require identification from you before releasing the requested information.

Contacting DPO

For questions and/or concerns regarding this Data Privacy Policy, use of your Personal Data, or your rights in relation to the Data Privacy Act of 2012, you may contact the Data Privacy Office in the following contact details:

Data Protection Officer
Email: dpo@offshorebusinessprocessing.com
Contact number: (+632) 7502-6411


Copyright © 2022 Offshore Business Processing PTY LTD
All Rights Reserved