Shared Services vs. Managed Services: What Suits Your Business the Best?

Every company needs a robust system of support to assist its success. Whether you manage a vast IT firm or a small independent business, assembling a solid team of qualified experts to support your organization may help it reach new heights. Shared services and managed services are two of the most prevalent services available. Each choice has a distinct purpose that can help your company achieve its objectives.

When deciding between shared and managed services, examining your individual needs and goals is critical. The more detailed your business plan, the more equipped you’ll be to make the best decision for your firm. You must first comprehend the significant distinctions between shared and managed services before choosing between the two types of businesses. Here are the essential details regarding each sort of service.

What are Shared Services?

Shared services is a business strategy that enables organizations to leverage their most-used capabilities across many departments. This is often accomplished by recognizing and noting the most frequently utilized and vital services. These services are then resourced and funded, and they are separated into needs for each specific department. 

In essence, shared services result in establishment of internal service provider divisions. They assist in ‘sharing’ resources with the rest of the firm. These internal service providers are accountable for meeting KPIs, controlling costs, and providing high-quality services.

The objective of shared services is primarily to deliver high-quality, non-core, yet mission-critical operations to the corporation at a lesser cost and much more effectively than the firm could do on its own. These services include both common recurring operations and highly specialized technical services.

What are the Perks of Using a Shared Services Model? 

A compelling shared services model offers the following advantages:

  • Culture– People with the knowledge and attitude to enhance the model outside the back end.
  • Cost Effectiveness – Back-office functions consolidate when used by several departments of the same business and do away with duplication.
  • Scalability– With only a small incremental cost, the shared services model may be expanded for both acquisition/geographical and service scope growth.
  • Decision Assistance– Information based on data analysis and delivery that is trustworthy and useful.
  • Focused and Unimpeded– Operating divisions can concentrate on their core competencies and external clients. This is due to the dependency here on shared services architecture for support.

How Do You Implement Shared Services?

A shared service unit functions as an internal customer service business rather than as a centralized operation of an enterprise. The unit’s employees are responsible for offering top-notch customer service to other team members. Yes, you must begin addressing your teammates like consumers if you are serious about enhancing your business.

Frequently, a shared service unit bills departments and divisions for its services. They will also use service level agreements, which are written as contracts that specify the service’s price, turnaround time, and calibre. This gives individuals who work in operations the information they need to gauge performance.

What is a Managed Services Model?

When a business offers IT services to clients via a different service provider or outsources the services to a service provider, this is known as a managed service model. Instead of paying the vendor, the client pays the service provider individually. This enables the client to concentrate on other commercial endeavours while the service provider handles all the technical concerns.

What Advantages Can Managed IT Services Offer?

  • High-security IT infrastructure: MSPs give your company a secure infrastructure that allows you to feel confident about the security of your data and apps. Businesses that use managed services 24/7 enjoy the benefit of better risk management and reduced downtime.
  • Centralization: By centralizing your servers and apps as a component of a managed network infrastructure, you may do so with a managed network. Consequently, staff productivity is increased, backup infrastructure is available, and virtual services are potentially available.
  • Expertise: By using a managed IT service, you may hire and train IT professionals at the expert level without spending a lot of time or money on the process.
  • Modern technology: By working with a managed service provider, you can make sure that your company is always utilizing the most recent technology. IT-managed service providers, often known as MSPs, keep your technical services up to date to guarantee that your business is prepared for the future.

Types of Managed Services

IT-managed services come in a wide variety and can impact all facets of a company’s technical infrastructure. Business and IT executives can mix and match various services to best meet their needs. They commonly select a fully managed IT solution in which most IT-related duties are assigned to a managed service provider.

  • End User Services
  • Infrastructure Support
  • On-site Services
  • Cloud Services
  • Security Services
  • Technology Support

The Core Differences between Shared Services and Managed Services

DifferenceShared ServiceManaged Service
The Nature of Your CompanyIt may or may not be possible that you possess the equipment and expertise necessary to effectively administer and maintain your IT systems if your business is in the tech industry. In that situation, a shared services model can provide the tools you require to advance your organization.Working with a provider through a managed services model will for sure provide you access to unparalleled talents and capabilities to operate your company successfully if you are a store or healthcare firm.
ScalabilityShared services architecture may be sufficient to address present (and future) business objectives for organizations with modest scaling requirements.However, enduring the drawn-out process of acquiring, educating, and maintaining additional resources may become incredibly taxing for companies that must scale up rapidly and regularly. In these circumstances, having a managed services provider offer on-demand availability to knowledgeable and skilled personnel – whenever and wherever you need them – may help you quickly achieve your scaling requirements.
Response TimeWith a shared services paradigm, you may be required to accept slower response times if your company users or customers need immediate attention to their problems and inquiries. Your internal IT team members probably have a lot of duties to carry out, so they won’t have enough time to reply to every issue or deal with every issue that arises.However, suppose you delegate your IT to a managed services operator. In that case, you may benefit from rapid reaction times and open the door for both enhanced staff productivity and greater customer satisfaction.
Round-the-clock supportA shared services approach can only provide a limited amount of help when it comes to needs for constant support. Uninterrupted assistance is not always achievable since your in-house IT department has other responsibilities and is often headquartered within the same standard time as your company.However, if you choose a managed services approach, you may get assistance 24/7. Whether you experience problems during regular hours of operation or after hours, a managed services business can quickly find a solution and make the required adjustments to ensure that the problem doesn’t recur in the future.

Why are Managed IT Services a Favourite Option?

A managed IT services company delivers a wide range of services at a single set charge. As a result, you will not be concerned about unforeseen expenses. Additionally, it implies that there won’t be any additional fees. You are fully aware of what you are purchasing.

Utilizing a managed IT services vendor also clarifies the time and effort required to manage your IT system. To analyze and manage your IT infrastructure, managed IT services companies often employ cutting-edge tools and technology.

All that You Need to Know about Cloud Services vs. Managed Services’

Cloud Vs Managed Cloud: What’s the difference?

The IT industry has transformed thanks to cloud computing. Businesses may now benefit from the cloud’s virtualization, enormous scalability, enhanced agility, and reduced expenses. Cloud Managed Services Providers (MSPs) are essential in assisting businesses in identifying and using these benefits. Traditional MSPs & Cloud MSPs carry out comparable tasks but in distinct contexts. 

The cloud is a new operating system constantly changing, so collaborating with a Cloud services for MSP is essential to stay up to date. Traditional MSPs assist with maintenance and monitoring much as Cloud MSPs do. The following sections compare Cloud Managed Services to Traditional Managed Services.

What is a Cloud Service Provider?

A cloud service provider, often known as a CSP, is a firm that provides one or more cloud computing solutions to other companies or individuals. Traditionally, a cloud service is characterized as infrastructure as a service (IaaS), software as a service (SaaS), or platform as a service (PaaS) when you search the internet. 

A more precise description would be, “A Cloud Service is any system that provides on-demand availability of computer system resources, such as storage and processing power, without the user’s direct active supervision.” Although it can appear a little broad, that is precisely how it should be. It may take time to become apparent to the common user whether their vendor or supplier qualifies as a cloud service provider since cloud services come in many shapes and sizes.

You might wonder why it’s crucial to start moving your company to the cloud if you still need to do so. Utilizing cloud-based services has several benefits, including:

  • Mobility: Obtain your operating system apps and data safe from any computer or mobile device.
  • Consistency: Most suppliers guarantee framework uptimes of 99.99% or higher because their facilities are designed with larger perseverance, and backup systems than many small and medium-sized businesses can afford.
  • Data Integrity: Your vital data is usually stored in a centralized facility protected by more robust security precautions than the average company can afford.
  • Versatility: Add, eliminate, and start changing new software programs and consumers quickly and easily.
  • Lower capital expenses: Decrease your necessary capital transactions of IT network infrastructure, such as data centers.

What is a Managed Service Provider?

An outsourcer- a managed service provider (MSP) is hired to support and deliver various IT services to a client organization, such as subnet, utilization, facilities, or information security. The MSP assumes full responsibility for these facilities and carefully chooses the technologies and solutions needed to satisfy the client’s requirements.

An MSP can handle a variety of job functions that, while critical to a company’s success, are not directly related to customers. Because of the efficiency improvements and knowledge that such a program brings, many organizations deliberate to offload organizational efficiency.

The following are the most common business areas that are outsourced to a managed service provider:

  • IT
  • Payroll
  • Work management
  • HR
  • Purchasing and sourcing                 

What is the Difference Between Cloud and Managed Cloud Services?

You’re stuck in a bind. Do you require a cloud services provider or managed services for business IT solutions? Various options exist based on the sort of business. To effectively support your company strategy, we are available to offer the services you need. Are you seeking managed IT services in general or specific IT benefits? Do you need access, mobility, digital security, adaptability, and dependability? It’s usually essential to study the distinctions between managed services vs. cloud computing before making a choice.

Cloud vs Managed Service Provider

  • Managed service companies offer assistance throughout the entire IT spectrum, from infrastructure maintenance to migration and cloud computing. Business strategy and technological solutions may be combined through your managed service. Managed service providers can design solutions specifically for your company’s computer requirements.

    Cloud service providers may save your business money and lower the expense of network maintenance. Due to the practical and safe offshore server storage of computing data, you won’t need to maintain full-time IT personnel. Additionally, you would only spend on what you need because your prices will be predictable.
  • Cloud networks provide a reliable infrastructure and round-the-clock administration. Cloud-managed network operators do keep an eye on the web and scan it for security issues, patch requirements, and other things. The cloud service providers you use are integrated, versatile, and personalized. The ability to predict your charges may be provided via a pay-per-service or monthly plan.

    With management, you’ve improved employee productivity, boosted network and computer availability, and your distant network users can access the same data as your on-site employees. A centralized system includes storage and backup functionality.


Cloud computing refers to various scenarios where your initiatives, software, and information are deposited and accessed via the Internet rather than retained and managed on a hard drive in your office.

  • Software as a Service (SaaS): On-demand connectivity to software via the Internet. It is usually available via premium membership or pay-per-use. Notifications, data backup, and intelligence services are also included in SaaS.
  • Platform as a Service (PaaS): Customers could operate their programs on the console of the supplier, eliminating the need for servers that must be maintained.
  • Infrastructure as a Service (IaaS): The product sub its stockpiling available to enterprise customers, allowing them to scale up or down as needed.


Managed service providers offer assistance that an in-house IT department would ordinarily offer, such as hardware maintenance, software updates, and security management. You are given a specific server, and the managed service company (MSP) will monitor the system and resolve any IT issues.


  • Data backup and recovery
  • Email server hosting
  • System management
  • Network monitoring
  • Applying security updates

Benefits of Cloud Services

The phrase “cloud computing” has become more well-known in recent years. Organizations and people are finding it more and more challenging to keep their vital data, programs, and systems up and running on internal computer servers due to the rapid surge in data consumption that has preceded society’s transition into the digital 21st century. The answer to this problem has been there for almost as long as the Internet, but businesses have only begun using it extensively. Lists of the best cloud-managed services exist. But first, let’s talk about the advantages of cloud computing.

So let us take a few moments to discuss some of the benefits of cloud computing:

  • Cost Savings
  • Flexibility
  • Insight
  • Security
  • Mobility
  • Increased Collaboration
  • Disaster Recovery
  • Quality Control
  • Loss Prevention
  • Competitive Edge
  • Automatic Software Updates
  • Sustainability

Benefits of Managed Services

The cloud industry has grown substantially over the last couple of years as people have become more aware of its functionality and advantages. Businesses are increasingly turning toward traditional physical networks and are trying to adopt the cloud as the foundation for their communications infrastructure. Cloud service implementations are continually being created, as are tools for optimizing existing applications for cloud compatibility.

These are the benefits of the cloud-managed service:

  • Money Savings
  • Automatic Improvements
  • Disaster Restoration
  • Quick reaction times
  • Internet Security
  • Resistant Structure
  • Centralized management

Why do you need a managed cloud service?

Managed cloud services can include a wide range of IT responsibilities, such as on-demand engineering, operations management, 24-hour help desk assistance, hosting, and deployment. Your IT teams may focus on more sophisticated initiatives and projects that provide new business results by delegating these kinds of work to a dependable partner.

Organizations may accomplish various objectives in the IT department and the business at large by working with a managed cloud services provider. Reduced complexity, enhanced cost management, and rapid development and innovation are some of these results.