What a managed service is
It is a contract between companies in which a provider takes on a function, a project or defined results, with its own team, method and means. The client company defines what it expects and how it accepts it; the provider directs the work and answers for what it delivers.
The difference with a hire is fundamental: the company buys a service. It does not hire employees through a third party.
The four most common models
- PMO as a Service (PMOaaS): the project management office runs as a service, with portfolio, plans, tracking, risks and executive reports.
- Fractional Leadership: external executive leadership, part time and with defined goals, such as sales or operations leadership.
- Managed Services: an ongoing service with agreed deliverables and service levels, such as business intelligence, automation or quality.
- Outsourced Business Functions: a whole business function, run by the provider with its own means.
When each path fits
- Direct hire: permanent functions the company wants to direct day to day.
- Temporary staffing agency: peaks of work, replacements or temporary increases in production or sales, within the time limits set by law.
- Managed service: projects, specialized functions or part-time leadership, when what matters is a measurable result rather than a person’s availability.
What Colombian law says
Article 34 of Colombia’s Labor Code, as amended by article 44 of Law 2466 of 2025, defines a contractor as someone who provides services for third parties "for a set price, assuming all risks, carrying them out with their own means and with technical and managerial freedom and autonomy".
The same article makes the client company jointly liable for the wages, benefits and severance of the contractor’s team, except for work unrelated to its normal activities. That is why it is worth asking the provider for its payroll and social security records.
Only temporary staffing agencies may supply workers on assignment, and article 45 of Law 2466 of 2025 tightened their limits.
This guide is for information only and does not replace review by a labor lawyer.
How the contract protects autonomy
- The company defines results, priorities and acceptance criteria; it does not give direct orders to the provider’s team.
- A lead from the provider is the client’s point of contact and directs the team.
- Payment is set by deliverables or service levels, not by a person’s hours.
- The provider brings its own method, tools and means, and answers for replacements and continuity.
Questions
Is a managed service the same as a temporary staffing agency?
No. A staffing agency sends workers on assignment whom the client directs. In a managed service, the provider directs its own team and answers for the deliverables.
Who directs the team in a managed service?
The provider, through its account lead. The client company sets priorities, results and acceptance criteria.
How is it paid?
By deliverables or service levels agreed in the contract, not by a person’s hours.
Sources
Propose a managed service
Tell us about the vacancy or the function. We turn it into results, deliverables and acceptance criteria.