What’s the difference between a solution provider and a service provider?

In today’s era of rapid digital transformation, it solutions provider, companies are seeking new innovative ways to solve their business needs in a wide range of industries. Every day, decision-makers partner with IT outsourcing companies to optimize the budget and receive reliable IT services that aren’t available internally.  

It is erroneous to believe that traditional IT outsourcing companies are both service providers and solution providers. Getting services from outside organizations is the same in both cases, but the level of expertise and outcome varies. Our goal in this article is to help you choose the right partner to guide you through your project development by explaining the difference between service providers and solution providers. 

Solution provider vs service provider

It is more common for traditional IT outsourcing companies to provide IT services for solving specific tech tasks rather than implementing long-term digital transformation strategies. It is the responsibility of outsourcing companies to perform tasks according to technical requirements, not to find more efficient ways to run your business.      

Solution providers provide a more holistic approach to technology and typically provide a range of Subject Matter Expert services. Essentially, a solution provider is genuinely interested in solving your entire business problem and bringing continuous value to you. 

You must ask yourself before taking any decision that involves a third party: can you hire employees in-house to handle repeating issues or can you outsource regularly. If your business has the resources to function effectively internally or if outsourcing will improve your performance, a strategic approach is essential.   

How does a traditional outsourcing company operate?  

In traditional outsourcing, relationships are more important than service-level agreements and project delivery.  Outsourcing is often used to reduce costs, improve efficiency, and speed up operations. An outsourcing company focuses on a particular task that can be done better, faster, and cheaper than hiring a solution provider.   

Find out below how to distinguish an outsourcing company that will help you meet all your business requirements if you are considering traditional IT outsourcing. 

  • Outsourcing companies provide dedicated teams of specialists matching the client’s technology stack; 
  • Understand the domain in which an outsourcing company operates. It may be a business or technology one;  
  • Find out how the outsourcing company retains clients; 
  • Seek references and testimonials from customers the company has worked with; 
  • Troubleshooting – see the examples of how an outsourcing company solved clients’ problems raised during various processes; 
  • Team & Management – consult the certification of the team and certification standards of the company. 

Now, let’s see what a solution provider is about. 

What is the best way to read a solution provider? 

The main difference between a solution provider and an outsourcing company is that the solution provider focuses on narrower areas of expertise. The following criteria should be considered when choosing a solution provider: 

  • Domains of business/technical expertise of the company should be clearly stated; 
  • Having worked on similar projects, the members of the team possess a high level of expertise; 
  • Certifications – certification guarantees the team’s skills; 
  • Consider how a provider solved clients’ business problems; 
  • Star clients/personal references – star clients raise the prestige of the company. 

Essentially, outsourcing companies will take care of your day-to-day business needs, while solution providers will implement a powerful strategic foundation for sustainable growth. As solution providers go beyond break-fix support, their services are more expensive. Your idea is studied, possible solutions are suggested, and a customized solution is presented. 

You can count on us for a solution

Choosing the right company is a complex decision that requires various considerations about your business, customers, unique needs, and budget. vibetron delivers technological expertise in computer vision, XR and healthcare. Proven experience in solving business needs, a transparent process of financial cooperation and experts from the required domain may be a good idea to contact us! 

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