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A managed team takes responsibility for a defined outcome, such as an application portfolio, a QA function, or IT support. It works to agreed service levels, with a lead who reports to you.
With a managed team, you stop managing individual people and start managing results. We build, run, and report on the team, and it stays long enough to improve the work rather than just maintain it.
A team asks the same question before and after Managed Teams is in place. The answer depends on whether anyone owns the whole outcome.
The work is getting done. No one owns the result.
Same portfolio, same budget. The difference is one team accountable for the outcome.