Please select a language

Please select the country/region where you would like to introduce your business.

Contact Us
Contact Us

Please select a language

Please select the country/region where you would like to introduce your business.

Knowledge What Are Managed Services? Explaining the Service Features and Benefits That Support Corporate IT Departments


What Are Managed Services? Explaining the Service Features and Benefits That Support Corporate IT Departments

“The servers are down,” “We can’t keep up with the security patches,” “The whole day is consumed by answering employee questions.” While corporate IT infrastructures are becoming more complex and diverse, information systems departments are suffering from a chronic shortage of personnel and a growing workload.

Ideally, information systems departments should be focusing on “offensive IT” that enhances corporate competitiveness, such as driving DX and planning new IT strategies. In reality, many are overwhelmed by “defensive IT” such as day‑to‑day operations and maintenance, and they cannot fully perform their intended role, creating a serious issue for many companies.

As an effective way to solve this problem, the use of “managed services” is now spreading rapidly. This article gives an easy‑to‑understand explanation of what managed services are, from the basics and details on service contents to the benefits of implementation.

1. What Is a Managed Service?

A managed service is a service in which an external specialist provider takes over management tasks such as operation, maintenance, and monitoring of the IT infrastructure (servers, networks, cloud, etc.) that a company owns or uses.

A Service That Takes Over IT Infrastructure Operation, Maintenance, and Monitoring

By paying a monthly fee and similar charges, client companies can leverage experts’ advanced skills and know‑how while reducing the cost of hiring and training in‑house specialists for operations management. The scope of services is wide‑ranging, from simple monitoring tasks to first‑level response in the event of a failure, security measures, and even consulting on optimizing IT assets.

This allows the information systems department to be freed from time‑consuming routine tasks and to concentrate its resources on more strategic, higher value‑added core operations.

2. Why Are Managed Services Needed Now?

The rising demand for managed services is driven by dramatic changes in the IT environment surrounding companies.

Increasing Complexity of IT Infrastructure and the Spread of the Cloud

IT infrastructure that companies must manage is becoming increasingly complex: not only on‑premises servers, but also public cloud services such as AWS and Azure, and even multi‑cloud environments that combine multiple clouds are now common. Operating and managing these diverse environments appropriately requires a broad range of specialized knowledge.

Shortage of IT Personnel and Growing Workload on IT Departments

While IT infrastructure becomes increasingly complex, many companies face a shortage of IT personnel, especially highly skilled infrastructure engineers. With limited staff, they must handle the ongoing operation and maintenance of ever‑expanding systems, security measures, and responses to employee inquiries, pushing their information systems departments to their limits.

Increasing Sophistication of Cyberattacks

Cyberattacks targeting companies, such as ransomware and targeted attacks, are becoming more sophisticated year by year. It is no exaggeration to say that attacks can occur at any time, 24 hours a day, 365 days a year. To protect systems from such threats, constant monitoring and rapid response when an incident occurs are essential, but achieving this with only in‑house resources is extremely difficult.

3. Main Service Components of Managed Services

The content provided by managed service providers varies, but in general it covers the following four areas.

Service area Specific contents

Monitoring & incident response

  • Availability monitoring of servers and networks
  • Resource (CPU, memory) monitoring
  • Initial triage and recovery when failures are detected
Operation & maintenance
  • OS and middleware updates and patching
  • Backing up and restoring
  • Account management and permission settings

Security measures

  • Operation of firewalls, SASE and WAFs
  • Monitoring and analysis of security logs
  • Vulnerability assessment and security patching

Help desk

  • Handling employee inquiries about IT
  • PC kitting and troubleshooting

Monitoring & Incident Response

Providers monitor around the clock (24/7/365) to ensure that servers and network devices are operating normally. If a problem such as system downtime or performance degradation is detected, they promptly identify the cause and carry out recovery work based on predefined runbooks.

Operation & Maintenance

The provider handles day‑to‑day operational tasks that are essential to stable system operation, such as regularly updating OSs and middleware, applying security patches, and backing up data.

Security Measures

They operate security devices such as firewalls, SASE (Secure Access Service Edge) and WAFs (Web Application Firewalls), and they monitor and analyze security logs to detect and alert on signs of cyberattacks at an early stage. This helps maintain and improve the company’s security level from a professional standpoint.

Help Desk & Inquiry Response

The provider responds on behalf of the information systems department to various IT‑related inquiries from employees, such as “My PC won’t start” or “I forgot my password.” This improves situations where IT staff are overwhelmed with daily inquiries.

4. Differences from SIers (System Integrators)

Managed services are often compared with “SIers (System Integrators).” The two work in cooperation but have different roles.

  Managed services SIer (System Integrator)

Main role

Operation, maintenance, and monitoring of existing systems

Planning, design, development, integration and implementation of new systems
Project phase

Post‑implementation (operation phase)

Pre‑implementation to implementation (build phase)

Contract type

Ongoing operations outsourcing (monthly, etc.)

Project‑based contract (lump‑sum)

Analogy

Management and security of a building

Design and construction of a building

Put simply, SIers are professionals at “building the house” (the system), while managed service providers are professionals at “managing and guarding that house around the clock and keeping it comfortable.”

5. Benefits of Introducing Managed Services

What benefits can companies gain by using managed services?

Reduced Burden on IT Departments and Focus on Core Operations

The greatest benefit is the ability to free the information systems department from routine operational and maintenance tasks. The time and human resources thus created can be redirected to more strategic “core operations” that directly contribute to improving corporate competitiveness, such as promoting DX, streamlining operations, and planning new IT services.

Stable 24/7/365 Operation and Fast Incident Response

Managed services enable round‑the‑clock system monitoring and rapid incident response by experts—something that is difficult to achieve with in‑house resources alone. This increases system availability, reduces the risk of lost business opportunities, and improves business continuity.

Stronger Security Through Expert Knowledge

Companies can receive support from experts who possess advanced cybersecurity knowledge and up‑to‑date threat intelligence. By getting advice on security holes that would be hard to notice in‑house and on appropriate countermeasures, they can raise their overall security level objectively and effectively.

Reduced and Optimized IT Operations Costs

Compared to hiring and maintaining an in‑house 24/7 operations team, total IT operations costs can potentially be reduced. There is no need to bear the cost of hiring and training specialized personnel, and fixed monthly fees make it easier to budget IT costs.

6. Drawbacks and Points to Note When Introducing Managed Services

Despite the many advantages, there are also points to consider before implementation. The biggest concern is that operational know‑how may not accumulate within the company. If you rely entirely on an external provider for operations, you may find in the future—when you want to switch back to in‑house operations—that you have none of the necessary skills or knowledge internally.

In addition, because service quality and scope vary among providers, choosing the wrong one can result in not achieving the expected benefits.

7. How to Choose a Managed Service Provider Without Failing

To choose a provider that suits your company, it is important to evaluate not only pricing but also the following factors in a comprehensive manner.

Selection point What to check

Service scope and flexibility

Does it cover the tasks you wish to outsource? Can it flexibly support future expansion?

Track record and expertise

Does it have a strong track record with companies of similar size and industry? Does it have deep expertise in specific technologies (e.g., cloud)?

SLA (Service Level Agreement)

Are service quality levels—such as response and recovery time—clearly defined and guaranteed as SLAs?

Communication

Are structures in place to enable smooth communication, such as regular review meetings and emergency contact systems?

Third-Party Certification Whether they have obtained international third-party certifications for information security and business continuity, such as ISO 27001 or ISO 22301?

Service Scope and Flexibility

The first thing to check when choosing a managed service provider is the “service scope.” The devices they monitor and the range of tasks they handle differ greatly among providers. Some providers offer comprehensive services that cover not only server and network monitoring but also OS and middleware updates, backups, and recovery work when failures occur.

It is important to first clarify which tasks your company wants to outsource and then confirm whether the provider offers services that meet those needs. If you are using cloud services, be sure to check whether the provider supports the specific cloud environments you use, such as AWS, Azure, or Google Cloud.

Track Record and Expertise

When evaluating service quality, whether a provider has sufficient track record and expertise is a very important indicator. Check specific case studies to see what kinds of corporate IT systems they have operated. If they have experience with companies in the same industry or with similar system sizes, it is more likely you can entrust operations to them with confidence.

Also, the certifications the provider holds and whether they are an accredited partner for specific cloud services (such as AWS) are useful objective indicators of expertise. Providers with experts who have extensive knowledge and experience can be expected to offer high‑quality support 24/7/365.

Whether the SLA Meets Your Company’s Standards

An SLA (Service Level Agreement) is a framework for guaranteeing the quality of the services provided by the provider. Using the SLA to confirm whether the services meet your company’s standards is key to provider selection. By checking the SLA, you can objectively evaluate service availability (uptime) and response speed when failures occur.

Main SLA items to check Description

Availability

The percentage of time the system operates without interruption.

Incident notification time

The time from when a system failure occurs until the provider notifies the customer.

Target recovery time

The target time from the occurrence of a failure until the system is restored.

Reporting

Frequency and contents of reports on system operation status, such as monthly reports.

Whether Smooth Communication Is Possible

Because managed services involve outsourcing the operation of critical IT infrastructure, whether smooth communication is possible with the provider is an extremely important point. You need close collaboration with the provider in various situations, such as when incidents occur or when discussing specification changes.

Therefore, check whether the support structure fits your operation style—for example, the presence of periodic review meetings, report formats, and the speed of responses to inquiries. In particular, it is essential to confirm that emergency contact methods and escalation flows (who is contacted and how when an issue cannot be resolved) are clearly defined in preparation for unforeseen events.

8. Summary: Make Smart Use of External Experts

Managed services can be a powerful partner for companies struggling with serious IT talent shortages, transforming the role of their information systems departments and improving overall productivity.

By entrusting day‑to‑day complex operations and maintenance to external experts and shifting your valuable internal staff to strategic IT utilization directly linked to business growth, you create a smart division of roles that is key to an IT strategy capable of winning in the coming era. The first step is to organize your company’s IT operations challenges and consider which areas could be outsourced.

Managed services are a powerful ally for companies facing IT talent shortages. In particular, it is not easy to operate and manage IT infrastructure and security for globally expanding businesses with uniform quality worldwide.

KDDI provides a “Global Managed Service” that supports customers’ entire global IT infrastructure 24 hours a day, 365 days a year. Through high‑quality operation and monitoring by experts, we reduce the burden on your IT department. For details on the service, please see the link below.

Related Services

Do you need more information?

Strengthening Security and Governance at Global Branches

Strengthening Security and Governance at Global Branches White Paper

Connect with KDDI consultants for inquiries and quotations.