3 Types Of IT Outsourcing Companies

3 Types Of IT Outsourcing Companies

IT outsourcing has become increasingly popular in recent years. Taking advantage of IT outsourcing can help businesses to significantly reduce costs. This article will explain the different types of IT outsourcing services and how they differ, including:

  1. Managed Services
  2. Cloud Computing
  3. SaaS

It may be best to go with one type of service rather than another, according to the needs of your business. Typically, managed service providers are a better fit for more complex organizations or those that wish to be less hands-on with their technology. On the other hand, the SaaS model is great for companies that would like full control of their software.

A managed services provider (MSP) provides IT support services such as network management, security monitoring, backup, and disaster recovery. They also provide consulting services to help clients plan and implement new technology solutions. MSPs typically charge monthly fees based on usage.

Cloud computing providers offer software applications hosted online instead of installing them on client computers. You can access these applications through the internet using web browsers. Cloud computing providers often charge hourly rates for access to their services.

Software as a service (SaaS) is a cloud computing model where users pay one fee per month for access to a set of pre-built software applications. Below we continue to discuss the three service types and what sets them apart.

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Managed Services

Cloud computing refers to using cloud-based software applications. Third parties host these applications, which can be accessed over the Internet. They offer users access to a variety of online tools such as email, storage space, and web hosting.

Managed services refer to outsourced IT management. This includes everything from network maintenance to security monitoring. Software as a service (SaaS) refers to software that is delivered over the internet rather than installed locally.

Cloud Computing

Cloud computing has become increasingly popular because it provides businesses with a number of benefits. It allows them to cut costs, improve productivity, and reduce downtime.

Cloud computing also offers businesses greater flexibility. Instead of having to invest in expensive hardware, they can rent virtual servers from a third-party provider. This means they only pay for what they use. Cloud computing also gives businesses more control over their data. By storing data in the cloud, they can easily share files across multiple devices.

Related Article: Buyer’s Guide to Managed IT Services


Software as a Service refers to software that is accessible via a web browser and hosted online. This means that users do not need to install any additional software on their computer. Instead, they simply access the software via the internet. A key example of this service is Microsoft 365 applications, which can all be managed through the cloud on any mobile device, depending on the network security restrictions.

In addition to these three types of providers, there are other options available. These include Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). PaaS (Platform as a Service) is where the platform itself is provided by another company. In other words, the provider provides the infrastructure needed to host the application. IaaS (Infrastructure as a Service) is a cloud service that provides the hardware and software required to run an organization’s applications.


In conclusion, when it comes to choosing an IT outsourcing company, you need to consider what services they offer, how much they charge, and whether their service will meet your needs.

You should also ask yourself whether you want to use a managed service provider or a software as a service provider. A managed service provider offers support and maintenance services, while software as a service provides access to applications without having to manage them.


Want a customized solution based on your needs? Not quite sure where to go from here? Let the experts at Ford Office Technologies give you a hand at 1-800-633-3673 or by emailing info@fordtech.com

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