Managed Services vs iPaaS

Managed Services vs. DIY iPaaS for API integrations: Which approach suits your business? 

The ability to seamlessly connect software applications has become essential for business efficiency. However, organisations thus face a key decision: should they use an Integration Platform as a Service (iPaaS) themselves or outsource their integrations through Managed Services? 

Both approaches offer advantages, but they cater to different needs. Understanding the differences can help IT leaders determine whether they have the right resources and expertise to manage integrations in-house or if outsourcing is the smarter choice. 

What is iPaaS? 

iPaaS (Integration Platform as a Service) is a cloud-based solution that enables businesses to connect applications using pre-built API-connectors, automation tools, and data transformation capabilities. With iPaaS, IT teams can build, manage, and maintain integrations in a standardised and scalable environment. 

Crucially, iPaaS platforms are GDPR-compliant and adhere to ISMS security standards to ensure safe data flows. Even when organisations manage integrations themselves, an iPaaS provides a scalable infrastructure that fosters consistency, security, and automation across systems. 

What are Managed Integration Services? 

Managed Integration Services simply outsources the integration process to a dedicated provider who handles everything from scoping the solution with you, building the necessary API connections and doing the data mapping, to monitoring and troubleshooting the finished integration. This approach allows businesses to free up internal IT resources while ensuring ongoing security, compliance, and maintenance. 

With Managed Services, organisations gain access to expertise and pre-configured best practices without the need to build and maintain integrations in-house. 

Key differences between iPaaS and Managed Services 

Who is responsible? 

• iPaaS: Your internal IT team builds, configures, and maintains integrations.
• Managed Services: The provider takes full responsibility for integration design, setup, monitoring, support and on-going optimisation. 

Technical skill requirements 

• iPaaS: Requires understanding of APIs, authentication protocols, data mapping, often the ability to write code, and ongoing system maintenance.
• Managed Services: Requires no technical expertise—your provider ensures that everything runs smoothly. 

Scalability and flexibility 

• iPaaS: Offers scalability, meaning businesses can rapidly increase the number of integrations without worrying about infrastructure limitations.
• Managed Services: Allows businesses to scale integrations without adding workload to internal IT teams. 

Security and compliance 

• iPaaS: Must be GDPR-compliant and follow ISMS standards. Companies managing their own integrations remain responsible for secure implementation and compliance monitoring.
• Managed Services: The provider ensures full security best practices and compliance with GDPR, SOC 2, DORA, ISO 27001, and other regulations. 
  

• iPaaS: Creates a standardised framework for integrations, reducing variability and making system-wide automation easier to manage. 
• Managed Services: Delivers integration consistency while removing the need for internal oversight. 

• iPaaS: Typically has a lower cost but requires dedicated IT resources to manage integrations. 
• Managed Services: May have a higher upfront cost but provides a predictable pricing model with ongoing support, reducing internal IT burden. 

• The cost of hiring or training IT staff to maintain integrations. 
• The potential cost of errors, downtime, and troubleshooting in a self-managed approach. 
• Reliance on an outsourced Managed Service can be costly over time if frequent changes are required 

• Organisations with strong in-house IT expertise that can handle API integrations and ongoing maintenance. 
• Businesses that want direct control over their integration strategy. 
• Companies that value a standardised, scalable infrastructure and are comfortable managing security and compliance internally. 

• Businesses that lack the internal resources to build and maintain integrations in-house. 
• Companies that need a fully managed, hassle-free solution with expert support and monitoring. 
• Organisations that prioritise security, compliance, and reliability but don’t have dedicated IT teams to manage integrations.