Managed Services vs. In-house Processing: Which Is Right For You?

managed payroll services

As the market becomes more fast-paced today, organizations continuously search for new methods on how to make their processes more efficient in order to keep up with the increasing customer demands. On one hand, some choose to make in-house investments and handle their daily operations by themselves, leveraging the skills and expertise of their employees. On the other, there are organizations that decide to leave certain processes to experts outside and focus more on core business functions.

With the ongoing debate on what’s better between managed services and in-house processing, let us tackle each approach to determine which is right for your company.


Managed Services

Managed services is an approach through which companies outsource one or more of their internal processes and leave them to the hands of experts outside the organization. This is often pursued when a firm does not have enough tools or skill sets to manage a particular process or would like to focus on more integral business functions. An example of this is when they engage in managed payroll services. Since it is undeniably crucial in every organization, some opt to outsource payroll operations as there are experts outside who fully understand how to make the process work better.

Benefits of Managed Services

  • Leaving the complexity to specialists

Through managed services, companies will be able to leave typically complex and time-consuming processes to specialists who are experienced and skilled, making operations more accurate and efficient. With this, managers and business owners can rest assured that errors are addressed timely and systems are proactively monitored and improved, while they are able to focus their energy in other aspects of the business that can ultimately help them grow and expand. 

  • Reduces costs

When processes are left to the hands of specialists equipped with the right tools, companies can cut costs on system maintenance, hardware and software support, and hiring expert employees that would handle complicated operations. Moreover, they can reduce the likelihood of paying fines and penalties due to errors committed by employees in charge who are less knowledgeable on the process. This will allow them to better allocate their resources on more crucial matters.


In-House Processing

In-house processing pertains to the approach where companies opt to have all their operations completed by their employees, rather than through outsourcing. This is usually done when they have the tools that would ensure that all tasks are handled efficiently and effectively.

Advantages of In-House Processing

  • Maintaining control

Keeping business operations in-house will allow companies to maintain control of important and confidential business data as they can limit and manage access. This eliminates the risk of third-party security breaches and other threats that may adversely affect them. 

  • Swiftly address concerns

Since companies typically opt for in-house processing when they have enough tools and expert employees to handle the work, they will be able to have the necessary support and resources whenever they need it. Organizational processes are typically interconnected, each contributing to the overall business operations. When errors rooted from one process occur which affect other integral processes, companies will be able to swiftly troubleshoot and address them, thereby ensuring that all systems are running smoothly, instead of waiting in a queue to have requests granted and potentially delaying crucial transactions.


How Do I Know Which is Right for Me?

Knowing which approach is better than the other will depend on the internal resources and capabilities your organization has, as well as the ecosystem under which it is running. To decide better, reach out to the experts at BSH Soft to guide you.