Today’s businesses increasingly rely on technology to optimize their operations and ensure seamless workflows, resulting in an increase in the demand for IT support services. In fact, a study by management consulting company Gartner found that IT services spending was expected to grow to $1.5 trillion in 2024, with the trend continuing well into 2025.
Businesses normally have two primary options when investing in IT services: they can establish an in-house IT team or invest in managed IT services. In this blog, we will discuss these two approaches, identify their advantages and disadvantages, and determine which setup is the best for your business.
Also known as onsite IT, in-house IT is a traditional approach wherein a business has an internal IT team to handle their technological needs. Hired directly by the company, an in-house IT team manages the business’s IT infrastructure, diagnoses and resolves technical issues, and implements new technologies and upgrades as needed.
They are normally responsible for the following IT functions:
Businesses hire internal IT teams for several reasons. But is this setup ideal for your company? Let’s take a look at some of the advantages and disadvantages.
1. Complete Control
One of the biggest benefits of having an in-house team is having full control over your business’s IT operations, decisions, and objectives. You also have immediate access to your staff, which means your business can quickly implement new technologies and updates, allowing your organization to stay competitive in today’s IT landscape.
2. Onsite Support
When you have your own IT team, you reduce the need to call someone from the outside to resolve IT issues like malware attacks, hardware problems, and disasters. This reduces the risk of downtime and improves your company’s productivity.
3. Better Alignment with Business Goals
Because your IT team is hired within the company, they will likely understand internal business processes, challenges, and goals better. As a result, you can ensure that your IT strategies are always properly coordinated between teams.
4. Custom Solutions
Having IT staff that are familiar with your business needs enables them to develop and implement solutions tailored specifically to your organization’s needs and goals.
5. Better Communication
With an in-house IT team, you can enjoy efficient and seamless communication. This can enhance collaboration between departments and simplify workflows.
1. Limited Expertise
You may realize that your internal IT team doesn’t have the right proficiency to handle certain aspects of IT. If they don’t have cybersecurity skills or experience, for instance, they might not be able to protect your IT systems and sensitive data from malware, phishing, and other cyberthreats that can steal your data and cause downtime.
2. High Costs
Maintaining an in-house IT team can be costly. For example, let’s say you hire an entry-level IT engineer with a $70,000 base salary. According to the Bureau of Labor Statistics, salary is only about 70% of the true annual compensation for a full-time employee. This is because there are other key components that contribute to the total compensation package, such as benefits, paid leaves, retirement plans, supplemental pay, and other legally required incentives.
This means that hiring an engineer would cost your business about $100,000. And given that you need multiple people in your IT team, your hiring expenses can increase substantially. On top of this, you need to invest in training and development, equipment, software, and office space. You may even need to hire new staff as your organization grows. These things can make in-house IT an unsustainable option for most small businesses.
3. Resource Allocation
Effective allocation of your IT team’s resources and skills is essential for maintaining productivity and efficiency. But during peak seasons or when multiple projects demand attention simultaneously, your in-house IT team might feel stressed and pressured as they attempt to juggle different tasks and priorities. This can make them less effective at their jobs.
Managed IT services refer to the practice of outsourcing your business’s IT initiatives to an external provider or a managed IT services provider (MSP) like Techmedics. Like an in-house IT team, MSPs maintain, monitor, and manage a company’s IT infrastructure.
According to a CompTIA study, nearly two-thirds of businesses leverage managed IT services for at least one IT function. Let’s look at the pros and cons to determine if this setup is ideal for your organization:
1. Access to Expertise
MSPs are composed of a team of professionals with extensive experience and knowledge of various IT domains like cybersecurity, network management, and cloud computing. This means gaining access to tech experts who know how to handle your IT systems and data, protect your business from threats, and implement the best technologies.
2. Cost Efficiency
One of the best things about leveraging managed IT services is that they are usually more affordable than hiring a full-time IT team. This is because you only need to pay a fixed monthly fee, compared to hiring an in-house IT team where you need to pay for salary, benefits, and overhead costs. This makes the setup ideal for business owners looking for predictable IT expenses.
3. Proactive Maintenance
MSPs can identify and resolve issues with your IT infrastructure before they become major problems and disrupt your business’s operations. While in-house IT teams can also provide proactive maintenance, MSPs like us offer round-the-clock monitoring, so problems are taken care of even if your business is closed for the day.
4. Flexibility and Scalability
MSPs can adjust their services based on your business needs. For instance, if your business is in its busiest season, MSPs can scale up support to ensure that your IT infrastructure can handle the demand. What’s more, MSPs can provide remote support and management. This means they can manage your IT systems and address problems without needing to be physically present in your office. This flexibility is particularly useful for businesses with remote workforces or multiple locations.
1. Less Control
By outsourcing your business’s IT functions to an MSP, you’re relinquishing some control over your business’s IT operations. This could also mean relying on the MSP’s priorities and adjusting to their decision-making process.
2. Contract Lock-in
Many MSPs today require a contract when you sign up with them. For instance, some have their clients commit for one year, which means you must stay on board with them until the contract expires. This could make it difficult for you to switch MSPs if you’re not happy with their service.
3. Communication Difficulties
Communicating with an MSP can sometimes be challenging. This could be because they are not easily accessible, located in a different time zone, or not following your established service level agreements.
4. Employee Resistance to New Systems
Employees who have been in your company for quite some time might feel hostile to changes implemented by your MSP, especially when first signing on. This could result in reduced productivity, decreased morale, delays in the implementation of new IT systems or processes, and even increased employee turnover.
So now that you understand the advantages and drawbacks of each IT services option, which one should your business choose?
In-house IT might be the right choice if your business has unique and specialized IT needs and requires complete control over your IT systems. It’s also a good idea if you have a complex infrastructure and a substantial IT budget.
However, for the vast majority of businesses, especially those that need cost efficiency, agility, and flexibility over their IT operations and initiatives, managed IT services are a compelling solution.
But did you know that you can also have an in-house IT team while also outsourcing specific tasks to an MSP? This is called co-managed IT services. Under this setup, you can leverage an MSP’s expertise and resources while maintaining control over specific IT aspects.
For example, if your staff doesn’t have the skills to migrate your systems and data to the cloud, an MSP can step in and become your cloud computing expert. They can also come in handy if your current IT team cannot monitor your IT infrastructure during holidays and weekends.
Choosing the right managed IT services provider for your Dallas, Denver, or Los Angeles business can be overwhelming. But fear not — Techmedics is here. With more than 25 years of experience in the IT industry, we can take over any IT function and ensure that you can make the most of your technological investments so you can drive your business forward. Request a free consultation today.
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