Managed IT Services vs. In-House IT: What’s the Better Choice for Your Business?

In today’s digital world, businesses rely heavily on technology to operate efficiently and effectively. Having a robust IT infrastructure is crucial for organizations of all sizes. The question many companies face, however, is whether to rely on in-house technologists or outsource the work to managed IT services. In this article, we’ll examine the pros and cons of both options to help businesses determine which option is better for their needs.

What Is In-House IT?

In-house IT, sometimes referred to by other names like onsite IT, refers to a team of IT professionals employed by the organization and responsible for managing the organization’s technology infrastructure. In-house IT teams are typically responsible for various IT functions, including network management, cybersecurity, software development, data backup and recovery, help desk support and other related tasks.

Pros of In-House IT

There are many benefits of having an employed team of IT professionals in your business:

• Control: One of the main advantages of in-house IT is that the organization has complete control over its technology infrastructure. The IT team works directly for the organization, allowing it to set its priorities and policies.
• Familiarity: In-house IT staff are familiar with the organization’s technology and business processes, allowing them to provide customized solutions tailored to the organization’s needs.
• Integration: In-house IT staff naturally integrate into the organization’s culture. They can work closely with cross functional teams to provide IT support and services that align with the organization’s overall goals and objectives.

While an in-house IT is appropriate for mid- to enterprise organizations, most small companies struggle to afford this expertise. That makes managed IT services an attractive go-to resource for small firms. But are there any negatives for a larger business to have an employed in-house IT team?

Cons of In-House IT

The potential drawbacks of an in-house IT team include:

• Cost: In-house IT can be expensive, particularly for small businesses. The cost of salaries, benefits, training and equipment can quickly add up, which can strain the organization’s budget.
• Limited expertise: In-house IT staff may have limited knowledge in certain areas, resulting in longer resolution times for complex IT issues. The organization may need to hire additional staff or outsource certain IT functions to address these knowledge gaps.
• Staff turnover: In-house IT staff may leave the organization, causing a critical loss of knowledge and expertise. The organization may need time and resources to recruit and train new staff. Given a considerable shortage of IT talent, this is an area of concern.

Today, 54% of companies report difficulty in finding the in-house IT talent they need. This is a business case for IT managed services. But are these third-party arrangements totally positive, or are there cons to go along with the IT managed services benefits?

What Are Managed IT Services?

Managed IT services refer to outsourcing IT functions to a third-party service provider. Managed IT services providers are responsible for a range of IT services, including network management, cybersecurity, software development, data backup and recovery, help desk support and other related tasks. In 2022, more than 60% of businesses relied on managed IT services.

Pros of Managed IT Services

The benefits of managed IT services include:

• Cost-effective: Managed IT services can be a cost-effective option for small businesses that may not have the budget to hire a full-time IT staff. MSPs offer flexible pricing models, including flat-fee or per-user pricing, allowing companies to pay only for their needed services.
• Expertise: Managed IT service providers offer specialized knowledge and experience in various IT domains, which allows businesses to leverage the MSP’s expertise to supplement their in-house IT team.
• Scalability: Managed IT service teams can help businesses scale their IT infrastructure quickly and efficiently. Organizations can easily add or remove IT services as their needs change without hiring or firing staff.
• 24/7 support: These add-on services offer 24/7 support, ensuring that businesses can receive assistance with IT issues anytime. This allows in-house IT staff to focus on more complex tasks, while the managed service provider handles day-to-day IT support.

In the same way there are pros and cons to having an in-house IT team, the benefits of managed IT services are balanced by drawbacks.

Cons of Managed IT Services

Managed IT services can have some potential drawbacks or disadvantages, including:

• Dependence on third-party providers: With managed IT services, a company’s IT infrastructure is typically managed by an external provider. This dependency means the company depends on the provider’s availability, expertise and responsiveness to resolve any issues.
• Limited control: With managed IT services, the company may have less control over its IT infrastructure than they would with an in-house IT team. They may need to rely on the provider to make decisions about software, hardware and security.
• Communication and collaboration challenges: Collaboration and communication can be challenging when working with an external provider. The provider may not have the same level of familiarity with the company’s operations, culture or goals, which could lead to misunderstandings or delays in resolving issues.

Companies must weigh the pros and cons of all their IT staffing options. Ultimately, the choice will depend on the company’s needs, resources and priorities.

Which is Better for Your Business: Managed IT Services vs. In-House IT

We can answer this question with another question: Why must it be either/or? Your decision to build an in-house tech team or rely on managed IT services depends entirely on what your business needs. You can bring in external resources as needed to help your business scale or provide the expertise you don’t have. Or you can rely entirely on managed IT services to save money over hiring a full-time in-house team.

Red River offers managed IT services designed to fit your business needs. We are here to supplement your -house IT team or to fully handle your infrastructure needs. Talk with our team today about how we can help your business.

Q&A

What are managed IT services?

Managed IT services refer to outsourcing some or all of an organization’s IT operations to a third-party service provider. The service provider assumes responsibility for providing a range of IT services, such as network management, cybersecurity, software development, data backup and recovery, help desk support and other related functions.

Managed IT services are designed to provide organizations with the expertise and resources needed to maintain and optimize their IT infrastructure. This allows businesses to focus on their core competencies while the service provider manages their IT needs.

How can managed IT supplement in-house IT?

Managed IT services offer several supplemental benefits to organizations with an existing IT team, including improved efficiency, enhanced security, reduced downtime and access to the latest technology and expertise. These services offer scalability for companies with an existing team during big projects or at times of high demand. With managed IT services, companies avoid the risk of hiring full-time staff as needs change. These professional organizations provide access to a team of experts with specialized knowledge that complements an internal team.