Managed IT Services: How it Works, Pros and Cons


Published: 17 Feb 2023

Managed IT services

managed IT services company

In light of the high costs associated with in-house tech units, more and more companies are looking for alternative ways to hire teams of software developers. One such solution is managed IT services – an approach that helps companies access and integrate managed IT teams into their operations remotely. In this post, we’ll walk you through the benefits and downsides of managed IT services, aiming to help you gain a more profound understanding of this model. Let’s begin!

How do IT managed services companies work?

Software development process: Typically, organizations hire providers of managed IT services to delegate the entire software development project. In this model, there are three entities involved in the process: the client, the managed IT team, and the managed IT services company. Here are their roles in the process:

  • The client. The role of the client is to provide their project specifications, including deliverables, milestones, timeframes, and success metrics they want their managed IT team to meet. 
  • The managed IT team. It’s an external part of your organization that you can hire through a vendor to handle software development. 
  • The managed IT services company. The vendor sets up a team and manages the process of software development. They apply their internal practices to complete the project as they see fit. At the end of the cooperation, the client gets access to the outcome of the managed IT team’s work, for example, a code base, IT  infrastructure, etc.

Communication with the team: When it comes to interaction with the remote squad, the managed IT services company typically provides a project manager to handle communication with the client. A project manager reports to the client on the progress on behalf of the managed IT team.  

Team creation: One of the major concerns of the clients choosing this model is: “Who is going to work on my project?” In this model, the client is excluded from the team creation process. It’s always up to the provider of managed IT services which kind of resources to put on your task and whether they will be shared with other projects. Thus, the client doesn’t have a say in the experience and qualifications of the team members who will work on their project. 

Benefits of IT managed services companies

Working with providers of managed IT services has many benefits, ranging from increasing your development capacity, fulfilling the skills you lack in-house, and optimizing your budget for software development. Below, we go over the main assets of working with IT managed services companies in more detail. 

  • Increasing your development capacity

As your project grows, your in-house team members may get overwhelmed with the increasing number of tasks or even suffer from scope creep. Facing this may lead to missing deadlines or losing momentum during the development process. The goal of hiring a managed IT services company is to get access to resources to handle a growing scope of tasks and free up your internal team. 

READ ALSO: Offshore Development Center vs. In-House Team: Which one is Best for You?

  • Access to a wide range of quality skills 

Chances are your project requires implementing recent technologies, for instance, AI/ML, IoT, Data Science, Cybersecurity, Blockchain, Cloud, and more. This kind of tech talent is hard to combine locally. Fortunately, in many cases, IT managed services companies do a good job providing companies with managed IT teams based on their competencies needs, as they tend to have access to a network of engineers at hand.

  • Managed IT teams at a reasonable cost

A managed IT services company can be a great cost-cutting tool, as it lets you cross out such expensive operations as team formation, onboarding of new hires, and team retention from your agenda. A solid managed IT team will deliver on your goals, whereas you save on team management, administration, employee bonuses, and more. The resources you spare this way can be further invested in your brand promotion. 

IT managed services firms: Downsides

When you cooperate with IT managed services firms, dealing with potential risks is essential. This section is dedicated to the potential risks and challenges of managed IT services.

  • Communication issues

Working in a distributed software development environment may create some obstacles in communication between the involved parties. Time zone differences, language barriers, and cultural discrepancies can be serious challenges for building effective communication in your managed IT team.

READ ALSO: Outsourcing vs Outstaffing: Which one is Best for you?

  • Qualifications of engineers

The qualifications of engineers who are going to work on your project are of key importance to the quality of the product. While managed IT services is a great way to expand your capacity, the client rarely knows exactly who is going to work on your project. That way, you need to rely on the provider to guarantee you a well-executed project. 

  • No control over the project

When hiring a provider of managed IT services, you give up one of the key ingredients of a predictable outcome of the project – personal control over the software development process. As such, there’s a risk that your product won’t be executed with the software development practices you deem acceptable. 

  • Lack of flexibility

Lots of modern projects benefit from agility as a way to change the course of the project at any time to meet the demands of the target market. In the managed IT services model, this will incur extra payment, as the service agreement is laid down in advance and can’t be amended. 

READ ALSO: How to Outsource Software Development Projects Successfully? 

nCube’s approach to managed IT services

If you’re looking for a solution to help you do much more than just overcome the risks of managed IT services, consider our team at nCube. With us, you will enjoy all the benefits of an external engineering unit with none of the risks. Here’s what we offer:

  • Direct access to your managed IT team 

With us, the client is able to manage the process directly and build a relationship with the team personally. Our approach also gives you the benefit of communicating and working with team members without intermediaries. It means that you can manage the project in your own unique way. 

  • Involvement in the recruitment process

During our team creation process, you will be the decision-maker when it comes to building your remote unit.  That way, you will approve all team members personally. As a provider of a managed IT team, we will match you with candidates who fit your requirements in the best way. 

  • A large pool of tech talent

We build teams in Eastern Europe and Latin America, the regions that provide access to pools of tech talent with a variety of quality skills. Many engineers in these regions have experience working with IT managed services firms, which guarantees they have strong tech skills and are strong communicators. 

READ ALSO: Nearshore Product Development: Eastern Europe and Latin America Overview

  • A personal approach

We will build a managed IT team according to your requirements. All engineers we provide have made the cut after our thorough internal screening process to ensure they are a perfect fit for you in terms of tech competencies, soft skills, English proficiency, and any other qualities you deem necessary. 

Contact us if you are looking to create a managed IT team fully dedicated to your project, working within a transparent model. 

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