Shared Services vs. Managed Services: What’s The Difference?

 What Is The ManagedIT  Service Model?

The managed service model is a clear type of outsourcing that covers all IT functions. This is also known as a fully outsourced model. In the managed services model, providers make all technology decisions. However, these decisions must be within the parameters established by the company. The only important role of the business in the managed services model is to identify processes.

A Managed IT Services provider is a company that remotely manages a customer's IT infrastructure and end-user systems. This is a proactive approach and is part of the underwriting model.

What Are The Benefits Of The Managed Services Model?

The managed services model has many benefits, including four:

Risk Mitigation: In the managed services model, managed IT service providers bear all risks. If something damages the technology in any way, the provider is responsible for fixing it.

Fixed Cost: refers to a monthly payment that never changes. This way you can get an accurate picture of how much you need to secure your IT budget.

Knowledge Retention: Outsourced vendors run the company's IT department, so no employees leave. Managed IT service providers store information about the business in files. They also bring the experience of previous customers to your company.

Focus On The Core Business - The managed services model frees the rest of your employees from IT worries. It also escalates any process that is not helping the company achieve its goals.

The managed service model is a model that Dynamix Solutions is very familiar with. As a provider of managed IT services, you help optimize your IT department and improve the overall efficiency of many companies.

What Is The Shared Service Model?

Shared services are a business model that leverages resources across the organization. This will reduce costs at agreed customer service levels. It is an independent business unit that provides a series of services to both company functions and business units.

The shared services model surrounds a goal. The goal is for each business unit to focus its limited resources on activities that support the business objectives of the unit.

What Are The Benefits Of The Shared Services Model?

The shared services model has several advantages:

Cost-effective - Centralizes back office operations and eliminates redundancy when used by multiple departments within the same company.

Culture: people with the skills and mindset to optimize models beyond the back office.

Decision support: data is analyzed and provided as credible and actionable information.

Scalability - The shared services model can be scaled for both geographic acquisition / extension and service scope at relatively low additional cost.

Freedom Focus: The operating unit is free to focus on its operations and external customers. This is because the support is based on the shared services model.