In a managed service arrangement, the managed service provider retains responsibility for the functionality of the IT service and equipment, and the customer typically pays a monthly fee for receipt of the service. There are many different types of managed IT service offerings, but the idea behind all of them is to transfer the burden of maintaining IT from the customer to a service provider. In an effective managed services relationship, a customer benefits from predictable pricing and the ability to focus on core business concerns rather than IT management chores.
In House—the process where an organization hires its own IT service providers and pays their salary, benefits, and further training, as well as the infrastructure they oversee. This is typically an extremely costly endeavor, and often businesses that try to procure in-house IT lack the capabilities to fully service their system as well as an inability to grow.