Managed Services
Definition
Managed Services — Managed services is an outsourcing model where a third-party provider takes full responsibility for delivering specific business functions or IT services, including planning, execution, monitoring, and optimization.
What Are Managed Services in Remote Staffing?
Managed services is an outsourcing model where an external provider takes full responsibility for delivering a defined business function or service — measured by outcomes, KPIs, and SLAs rather than individual effort. You define what needs to be accomplished; the provider decides how to accomplish it, including team composition, processes, tools, and workflow.
Unlike staff augmentation or dedicated teams (where you manage the people), managed services means you manage the relationship and outcomes. The provider manages the team. This is the highest level of delegation in the remote staffing spectrum.
How Managed Services Differs from Other Models
Level of Control
Accountability Structure
In managed services, the provider is accountable for results, not effort. If they need 5 people or 15 people to meet your SLAs, that's their problem. You pay for outcomes delivered, not hours worked. This shifts risk from buyer to provider — but also shifts control.
Common Managed Services in Remote Staffing
When Managed Services Is the Right Choice
When Managed Services Is NOT the Right Choice
Pricing Models for Managed Services
Per-Unit Pricing
Pay per ticket resolved, per record processed, per article delivered. Best for predictable, high-volume transactional work. Example: $3-$8 per support ticket, $0.50-$2 per data record.
Fixed Monthly Fee
Flat fee for a defined scope of service. Best when volume is relatively stable. Example: $15,000/month for Level 1 customer support covering 2,000 tickets/month.
Outcome-Based Pricing
Compensation tied to results. Best for functions with clear business metrics. Example: $X per qualified lead generated, percentage of cost savings achieved.
SLA Framework for Managed Services
Every managed services engagement needs clear, measurable SLAs. Structure them in tiers: