Managed Services vs In-house, Which One Is Best?

Managed Services vs In-House

Information technology is the backbone of every company. And yes, even your traditional brick-and-mortar business is adopting the use of apps, alongside more complicated CRM systems and proprietary software that are helping them scale. 

We truly are living in the fourth industrial revolution. 

But, while the benefits (in our opinion) seem to infinitely outweigh the negatives, business owners and CEOs still need to act when systems go down. 

That’s because when the network crashes, productivity stops, profits decline and bank accounts start hemorrhaging funds.

Because of this, one question our team constantly sees arise is—what’s more effective? To choose an in-house IT team to tackle IT issues or to outsource the job to a managed IT service?

To add our two cents and help you decide—we’ve written down the benefits and disadvantages of both options at hand. 


Is One IT Guy Better than Another?

The difference in competency level should really be the focus of this debate. 

In theory, your in-house IT support expert should be an expert who knows the ins and outs of the system. Yet, in today’s high pace of technological development, the one-man show concept isn’t as practical. 

In fact, the growing complexity of communication protocol and data management can often overwhelm an in-house small team.

On the other hand, specialization and bandwidth are the greatest assets of managed IT services. These companies have a team within teams that constantly upgrade their knowledge and are exposed to different types of problems to troubleshoot.

All in all, managed IT services can usually diagnose IT issues ahead of time and provide suitable solutions due to their ability to broader experience across industries and in less niched teams.

Availability Equals Ability

Here’s how the playing field gets evened back out. 

No matter how you spin it, a server problem has to get resolved, and the sooner the better. 

When a server malfunction or a glitch in the code blocks an application, the in-house IT support down the hall can respond in minutes. 

That speed doesn’t always apply to professionals from managed services. It may take several hours for them to arrive at the scene (remotely or on-site), as they may have obligations to other clients. 

The plus side here is that, with managed IT services, you often get 24 hours support that isn’t covered by shifts on in-house IT staff.

Before you say it’s been tied up at 1-1, we have one more thing in regards to managed services vs in-house support staff availability that you should keep in mind.

In recent years, most IT work has been done remotely, reducing operating costs by up to 45%. If the IT issue happens to occur outside working hours or while in-house staff are away, managed IT services may edge this argument out as a winner as well.  

In-House IT vs Outsourcing: The Unmatched Scalability Potential

Often today the business mentally is that a company must grow at all costs. In order for this to happen, the business in question’s IT department must also grow to support its expansion. That’s not always possible with in-house staff that’s undermanned or lacking the required expertise. 

With managed services, scaling is often a breeze. With the flexibility to scale up resources or reduce them down to meet a client’s adjusted needs, managed IT services is often the winner here. 

Choosing in-house IT rather than outsourcing can also mean hiring new people and investing in their training without guaranteed results.

All in all, managed IT services are the better option if expanding your operations is on the table in the near future. 

The Cost of Doing Business

At face value, you probably think this all comes down to money. 

And so, the debate about managed services vs in-house may boil down to choosing the more cost-effective option.

Yes, the cost of integrating an IT team into your structure can be a burden on your budget, especially if you are a smaller company. On the other hand, if you’re a larger corporation with complicated infrastructure that requires frequent maintenance, these integrated teams are probably necessary.  

Managed IT services that charge by the hour can quickly ramp up the bill, making every boss wonder if their intern could have done the job instead.

To help you decide, there are a few parameters to consider when addressing the question of managed IT service costs. These include:

  • Salary Cost: With managed IT services, you typically pay less for the same skills. You are sending a check to a company and letting them worry about their employees’ benefits. 
  • Training Cost: In an ever-evolving field, constant education is necessary to stay up-to-date with the newest standards. With managed services, you pay only for their knowledge and not for them to get it. 
  • Utility Costs: Remember you are not paying for office space, tools, and leave/holiday time when outsourcing. If a piece of equipment fails, it’s somebody else’s problem.

In-house IT vs Outsourcing: The Final Verdict 

If our guide has been leaning in managed IT services favour, there’s probably a reason for that. 

A reliable provider can be a strategic partner that offers end-to-end ecosystem integration. However, the final decision will depend on your business’s circumstances. 

Keeping things in-house enables total control of business data. Yet, in an era of cloud storage, it’s a rare luxury (if not an unnecessary luxury) to have that capability locally. 

To conclude, businesses must have a clear perspective of their technology needs before committing to a viable option—managed services vs in-house. As discussed, both options have their strengths and weaknesses and the final call should be based on the exact requirements of your business. 

If you would like to discuss your options further, don’t hesitate to get in touch with our Brisbane-based managed IT services team!  

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