In-house IT vs. Managed IT Services; which is suitable for you?
Many businesses struggle to decide which would be more efficient for their company: in-house IT or outsourcing their IT to a managed service provider. Both models have their benefits, but choosing which would best suit your needs depends on your business.
As a managed service provider, we know that our services are not fit for every company. Many businesses would be much better off having their IT run internally without needing an outsourced provider. On the other hand, many companies can thrive from outsourcing their IT to a managed service provider. To help you decide which model would be most compatible with your current environment and future needs, let’s take a look at which of these models entails.
What are managed IT services?
Managed services are another method to help keep your network running smoothly. Managed service providers continually monitor your network to catch an issue before it arises rather than simply fixing things when they break down.
When partnering with a managed IT, service provider, they will also help you plan projects and infrastructure upgrades to increase productivity instead of figuring out what to do on your own. This long-term approach to IT is often suited well for organizations that want to invest in their network and pay for peace of mind.
What are the advantages of managed IT services?
With managed services, you receive a predictable budget, have proactive and reactive support, and a business partner you can trust to handle your IT infrastructure.
Cost-efficient:
Depending on the size of your company, it might make most financial sense to partner with a managed service provider rather than hire in-house IT personnel. For example, let’s say you have 50 users and a managed service provider charges $150 a month per user.
This would total $90,000 a year for fully managed IT services. With this price, you would receive a vCIO, a team of IT experts, and help desk support to manage your IT infrastructure. You could not likely hire a full in-house team with the same level of expertise for such a low cost.
With managed services, the costs are also predictable. Your MSP will inform you of the set price you will pay each month. The price you pay will be a recurring cost that you and your MSP have agreed on. Having the costs of your services written formally in a contract ensures that the costs and fees cannot change unexpectedly. This makes your IT much easier to budget for.
Proactive and Reactive approach
Having managed services also means your network hardware is upgraded regularly. Software is constantly checked to ensure that it is up-to-date and running faultlessly. With up-to-date software and constant monitoring, managed service providers can prevent security threats or breaches on your network. The management of your network will be completely taken care of, so you can focus on your business.
If an issue arises, your managed service provider will work with their team and you to resolve it as quickly as possible. When a break or network crash occurs, you mustn’t be left with considerable downtime so that business operations can continue as normal. Your managed service provider will work tirelessly to ensure you are up and running as quickly as possible.
Familiar with your environment
When you work with an MSP, they know the ins and outs of your IT infrastructure. When an issue arises, it is much easier for them to quickly pinpoint where the problem is coming from and resolve it.
You establish a strong relationship with your MSP that relies on trust to ensure that your infrastructure is secure. They can also use their extensive knowledge of your environment to continue building upon the infrastructure, enhancing it, and keeping you up to date on the latest IT tools and knowledge to prepare you for future success.
What are the Disadvantages of managed IT services?
Some cons to outsourcing an MSP are that you will be obligated to sign a contract, likely pay a high upfront cost for onboarding, and have shared control of your IT infrastructure.
Contractual Bond
Although you will receive stability in your budget, your network support comes with a contract that might scare some businesses. This can seem too much of a commitment for some people to make, especially if you find yourself with an unqualified managed service provider.
For this reason, before committing to these contracts, it is essential to make sure you have thoroughly researched your managed service provider before making any long-term commitment to ensure you are fully confident in the decision. Ask for references. Your business is worth the time investment.
High initial costs
The initial onboarding process can have high upfront expenses. The costs can be higher at first because managed service providers will need to implement off-premises hardware, new software, servers, and network monitoring equipment. After assessing your network, all these extensive enhancements are based on their results to ensure you are getting ahead of any potential IT threats.
Shared control
With an MSP, you do not have full control over your network. They will have complete control over devices, programs, and server operations. This is why trust is a crucial component in choosing your MSP. Knowing that they will always have your best interest in mind while managing your infrastructure so that you can be reassured that your sensitive information is secure and in good hands.
What is an in-house IT Provider?
An In-house IT provider typically works for one of your departments inside your office. Hiring an in-house IT provider typically designates one person to an expert on your network infrastructure. If your business were to grow, you would most likely need to hire more in-house IT personnel to keep an eye on everything. You will always have a member of your staff team that is strictly designated to IT.
Advantages of an in-house IT provider?
Here are some of the biggest advantages of working with an in-house IT provider:
Familiar with your environment
The nice thing about hiring an in-house IT provider is that they only manage your IT, so they should understand how everything within your network functions. If an issue arises, they will be under your direct control to navigate the problem and resolve it.
This IT person will have full control over your network, so you must choose someone who has aligned goals with your company. Your business may also require highly customized solutions for your specific business. Having an in-house team that understands your unique environment can be very beneficial.
Cost-efficient
Having your IT in-house may be more cost-efficient if you are a larger company. For instance, say you have 300 users, and a managed service provider charges $150 a month per user. This would total $450,000 a year for managed IT services.
In this case, it is much more cost-efficient to hire a team of in-house IT technicians to manage your environment. With $450,000, you can likely hire a team of employees who will focus on managing your IT infrastructure.
Disadvantages of an in-house IT provider?
Here are some of the biggest disadvantages of working with an in-house IT provider:
Retention of employees
It can take a little bit before you find the proper IT support for your business. Find yourself with someone not providing your network infrastructure with security and support. This can add up to be a costly hire and leave you with considerable downtime finding somebody new.
With managed IT services, you will have reliable; IT support 24/7 without worrying about retaining employees. It is also uncommon that one IT expert can be an expert on everything related to IT. For this reason, you may find yourself having to bring in an outsourced IT technician to assist with a more specified skill, which can be costly.
Cost of retention
There are a lot of hidden costs that you don’t often think about when you hire an in-house IT team. When you hire an in-house team, it requires more than just payment for the service. There are also costs associated with salary, benefits, insurance, vacation time, overtime, training, etc. All of these costs related to one employee may be better utilized by hiring a managed service provider that can support your business.
The Hybrid Model: Another option for IT support
When you decide whether to hire a managed service provider or hire in-house IT support, it ultimately depends on what the individual is looking for. For many companies, a hybrid model of both models works very efficiently.
This would mean that you have in-house IT support for any immediate issues such as a broken keyboard or user problems. When it comes to creating bigger goals or dealing with a significant issue, an outsourced managed service provider can step in and use their pool of resources to ensure there is minimal downtime. This can be an excellent option for growing businesses to ensure that you have a large enough IT support system to sustain operations and an efficient workflow.
What factors should you consider?
When deciding between hiring an outsourced managed IT firm or investing in in-house IT support, it is essential to investigate your business needs first. Business size (small, mid-size, or large), budget, and future goals are important factors. After determining this, you can then start looking into how these two options differ in what they provide.
Interested in learning more about Managed IT services?
By now, you have a better understanding of both in-house IT and managed services. When deciding on which model is better for your business, it is essential to evaluate your budget and expectations for your IT environment.
As a managed service provider, Usherwood finds it critical that we clearly understand each other’s expectations. Both parties should discuss long-term goals and how the journey to meet those goals will be achieved. This will ensure there are no miscommunications that could lead to an unsuccessful partnership.
When it comes to managed services, many businesses get confused about what exactly it is that they offer. If you are interested in learning more about what is included in fully managed IT, check out this article: What Is Fully Managed IT? (How it Works and Why You Need IT).