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Shared Services vs Managed Services: A Side-by-Side Comparison of the Two Business Models

Every business needs a strong support system to help steer it toward success. Whether you run a large tech firm or a small local business, finding a powerful team of skilled professionals to back your company can help it rise to new heights. Two of the most common services that you can choose from are shared services and managed services. Each option has a unique purpose that can empower your business to reach its goals.

When considering shared services vs managed services, it’s important to take your specific needs and goals into account. The clearer your business plan is, the better prepared you’ll be to make the right choice for your company. Before you can decide between shared and managed services, you need to understand the key differences between the two business models. Here’s what you need to know about each type of service.

What Are Shared Services?

Shared services refer to the consolidation of services that are used across various departments of an organization. The goal of these services is to optimize a company’s most widely used resources. After identifying the most crucial services to your business, a shared services team will fund these services and provide them with the necessary resources. Each service can then be properly sorted into the correct department.

As the name implies, the ultimate goal of shared services is to share your most-used services across your entire organization. This is accomplished by forming internal service provider departments that boost the overall efficiency of your business. Internal service providers can help accomplish a variety of tasks, including:

  • Keeping costs in check
  • Achieving key performance indicators (KPIs)
  • Ensuring quality services

When comparing shared services vs managed services, it’s worth noting that shared services can help reduce your business’s various costs. By consolidating your services and constantly searching for ways to improve them, shared services aim to improve the efficiency of your business while ensuring high-quality resources.

What Are Managed Services?

Managed services are distinct from shared services in a number of ways. Managed services usually refer to IT services, which are outsourced to a third-party contractor known as a managed services provider (MSP). An MSP strives to make important technological decisions on behalf of your company. By working closely with your team, a skilled MSP can ensure that the decisions they make align with your unique business goals.

Managed IT Services

Managed IT services seek to monitor your IT infrastructure to ensure that it’s doing its job as efficiently as possible. This includes managing all of your machines, servers and mobile devices and inspecting them for any potential issues. Most managed service teams also offer a wide range of additional services to companies, such as cyber security support and data compliance support.


If you choose to hire an MSP after comparing shared services vs managed services, you can help prevent costly problems from appearing before they wreak havoc on your business. A managed services provider ensures that your systems are up-to-date and that they’re running smoothly.

An IT expert can also confirm that the latest software is installed, which is crucial to keeping potential issues at bay. Older systems tend to cause more problems, which can put a lot of strain on your business in the long run.

Choosing the Right Business Model for Your Needs

As you analyze the differences between shared vs managed services, it’s important to account for the pros and cons of each business model. Making the right decision for your business ultimately boils down to understanding the implications of both service types.

First, consider the size of your company. If you own a small business, you may want to consider investing in managed services. A managed services provider can provide you with access to key technological tools while helping you stay within your budget. Additionally, by letting a managed services team take care of your company’s tech needs, you can shift your focus to other pressing tasks that are needed throughout your business.

It’s also crucial to think about your team’s level of expertise. If you’re struggling to meet clients’ needs due to a shortage of skills and experience among your internal team, it’s a good idea to outsource these skills to a third-party provider. Alternatively, if you’re confident in your team’s ability to cater to customers’ needs, you may consider opting for shared services instead.

Another key point that can help you decide between shared services vs managed services is response time. You might have to settle for slower response times if you rely on your internal staff to perform different tasks. Even if you assign responsibilities to a large group of workers, you likely won’t see the same efficiency as you would by outsourcing to an MSP. At the end of the day, choosing managed services can allow you to achieve a higher level of productivity throughout your entire workforce.

Help Your Business Thrive With the Right Managed Services

At Network Coverage, we provide businesses with a wide selection of customizable managed IT solutions. No matter what your goals are or what your budget looks like, we cater our services to your specific needs so that you can focus on doing your job successfully. By connecting with one of our highly responsive support teams after you’ve decided between shared services vs managed services, you can be assured that your technological needs are in the right hands.

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