Managed Service Provider or Independent IT Contractor

managed service provider or independent it contractor

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When filling an open post in the past, selecting someone more qualified was equitably straightforward. The availability of outsourcing services, however, often leads IT firms to wonder whether they should work with an independent IT contractor or a managed service provider. 

The question of “Should I hire a managed service provider or an independent IT contractor agency?” is one that many people struggle mostly. Since the beginning of outsourcing, firms have been asking themselves this question.

For this reason, we will cover some crucial factors to consider with managed services examples before determining whether to work with a managed service provider or an independent IT contractor module to fulfill your firm’s demands.

What is a Managed Service Provider?

Managed service provider – work as an outsourcing company that communicates between the client’s enterprise management and third-party talent providers.

Employing MSPs offers business opportunities to reduce sales costs and ensure compliance and consistency while lowering sales costs. MSP scalability, however, isn’t the best fit when it comes to hiring independent contractors. It is more efficient for MSPs to serve a wide range of supply chains than to focus on a single client.

What is an Independent Contractor?

The term independent contractor refers to people who act as external agents for a wide range of businesses in their capacity as external agents. Employing contractors entails the company entering into a contract with them – to allow them to work on particular projects for a predetermined period.

Companies are responsible for selecting and managing independent contractors as well as their recruitment and other needs while doing so. However, businesses pressurize to provide independent contractors with benefits like health insurance that they would have to provide to full-time workers.

Hiring a Managed Service Provider

A great option that is affordable, adaptable, and dependable is what many business executives look for when thinking about the long-term management of their organization’s IT. Various IT tasks get accomplished by handing the duty to a third party. Going with a managed service provider, often known as an MSP or IT firm, is the most popular outsourcing choice that also provides managed service provider cloud.

Your company can gain the following benefits by hiring a managed service provider

  • Monthly costs are very predictable with a managed service provider’s predetermined monthly payment schedule. Planning your business budget becomes simple as a result as you expand.
  • If you choose a pay-as-you-go corporate IT approach, you may have to increase the resources to meet your changing and challenging demands.
  • Instead of relying on a single person with broad knowledge, you gain from a team of professionals with experience in many different technological fields.
  • You will have access to a wide range of resources, technology, and tools from the managed IT service provider.
  • Additionally, you receive extras like field hosting, security features, email accounts, and disaster recovery assistance.

Hiring an Independent Contractor

Information technology is one of the core areas which get most frequently outsourced to independent contractors due to its cost. Keeping up with technological advancements is challenging for most firms. Outsourcing can help businesses achieve the same level of service and performance for a much lower price.

The startup IT firm often lacks the funding to hire all the management personnel it requires to operate. Because hiring people is the single highest expense for a business. The majority of entrepreneurs try to delay doing so as long as necessary. But how can a startup business continue to expand while just having a few employees?

Hiring an independent contractor is the answer. Independent contractors are a set of a team who run their businesses and gets employed by business owners to carry out specified tasks. They are under the entrepreneur’s authority just for the outcomes of the job they produce, not for how those outcomes get obtained.

The benefit of hiring an independent contractor:

  • Lower overhead: Types of equipment, supplies, and workspace get covered by the independent contractor’s overhead costs. Training, health insurance, benefits, paid time off, unemployment insurance, and workers’ compensation are not your responsibility. They also give you an invoice, saving you the trouble of going through your payment division.
  • Expertise: They typically possess a highly specialized skill set in their respective field. The contractor can usually get started straightaway, so you don’t have to spend money on staff training. These are particularly helpful for short-term initiatives because expensive internal hiring and training; may not be able to meet long-term needs and would cost more than the training’s long-term benefits.
  • Flexibility: If the independent contractor is a good fit, you can consider giving them another project when your current contract expires, or you can decide not to. If you are pleased with the contractor’s performance, you can give them other assignments at a time – convenient for your company. Contrarily, ending a working relationship is problematic.

Managed IT Service Provider Versus Independent IT Contractor

Employers should know the advantages and disadvantages of each form of third party before selecting one for their company.

Managed IT service providers have often experienced businesses with the knowledge to offer thorough IT support across various facets of your company, as the name implies. Independent contractors function as their sole agents and choose their hours.

For the following key reasons, managed IT service providers may meet your needs more than independent IT contractors:

  • Managed IT service providers help businesses save precious time and money. Instead of starting from zero with recruiting and hiring independent contractors, they may concentrate on managing their company. If you engage with third-party outsourcing: you will not have to worry about these things because they will take care of the business on your behalf.
  • The nature of work or employment is such that independent contractors are frequently engaged in the short term to provide services that are currently unavailable within the business and urgently required. Managed IT service providers have a long-standing relationship with their clients, and their work is more closely related to and integrated with the business process.
  • While managed IT service providers are subject to the organization’s personnel policy, employee handbook, and employment-at-will doctrine, independent IT contractors for hire mean only hired for work in compliance with agreements and contracts.
  • While top-managed service providers operate multiple services and are available to facilitate every aspect of work in the daily operations of a company. Independent contractors may get recruited for a specific area of work.
  • The provisions of your written agreement with an independent contractor limit your authority to fire them. A separation decision that deviates from the terms is regarded as a breach of the agreement. In court, such an instance never goes well.


Since outsourcing is more advantageous in terms of time, money, and consistency, businesses consider it. They have the necessary resources to effectively manage their personnel, which enables them to run their business without experiencing any setbacks or interruptions. 

Whether you require immediate assistance with a simple task for your project. An independent contractor may be a fantastic choice. However, outsourcing businesses provide more advantages and benefits if you seeking a long-term solution to your workforce shortage.

Therefore, it is comparatively more profitable for an organization to hire a Managed IT service provider, as it is also cheaper and provides more services. Our Preeminent Technology is one such organization that is a pioneer in offering Managed IT Services to Organizations.

Preeminent Technology (PMTT) is not just a typical managed IT, service provider. Rather than profit from your pain, it invests upfront in your success and takes on more risk. PMTT believes that the best IT experience comes from fully managed IT services that reduce distractions. And the best relationship with IT comes from IT support that is inclusive and always available for one flat, with no surprises and a minimal monthly fee. That is why it delivers Dallas’s most comprehensive IT solutions. That’s why it pioneered flat-rate MSP service. With PMTT, Consider IT done.

Seeking the right managed service provider facilities? Preeminent Technology – managed service provider in Texas should be your preferred choice. Contact Us at 214-306-6915 or Visit our Website for all related inquiries!



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