Hiring in-house IT workers or Outsourced Managed IT Services?

Pros and Cons on both

Your technology ecosystem is (arguably) the most important element to keeping your business operating in today’s environment. Most businesses are so heavily reliant on technology to complete their daily operations, that when if it fails, we could stop working altogether. 

That's why the question of “how do I manage my companies IT network?” is not quite as simple as making a quick decision, and we don't think that any company should make a choice without understanding the pros and cons of whether to manage in-house or outsource.

When it comes to businesses and technology,  there are generally three options:

  1. Utilise in-house resources,

  2. Outsource to a Managed Services Provider, or

  3. A combination of both.

No two companies are the same. Where some have in-house resources to manage and maintain their networks, others outsource completely to a Managed Service Provider (MSP) like Netway Networks and others utilise a combination of both.

However, time after time we get asked: “what’s the best solution for my business?” Although the answer is not quite as simple as one or the other, we think that it’s important to showcase the pros and cons of both sides so that you can make your mind up.


Insource or Outsource IT Departement? 

Factor In-house Outsourcing
Price Being conservative, let's say most businesses have one IT Manager. As of October 2019, according to payscale.com, the average IT Managers salary is $102,705. Alternatively, if the average price of Managed Services are between $75-$100 per user (let's say $100) - 50 Users x $100 = $5,000 a month and $60,000 per year. 
Hardware/software procurement

Vendor relationships
Depending on your companies size, it's not easy to create relationships with vendors meaning discounts may be off the cards. However, you get to choose which products are best for you.  MSP's have relationships with software and hardware vendors meaning that they recommend certain products and unlock bulk purchase discounts and access to new technology/products. 
Expertise In-house staff will be product champions of the software/hardware that you are utilising. This means that familiarity will favour your business. However, they might be lacking in innovation or learning about the latest trends with new technology. Furthermore, if you have a less skilled engineer you might still need to outsource advanced areas such as networking.  A good MSP supports a number of clients and therefore employees engineers that focus on different areas with varying levels of skills and experience. So, while this does risk them not having expertise in your chosen solution (although this is quite unlikely), they do support a greater number of solutions, some of which you might be wanting to migrate to.
Physical Presence and Time to Fix In-house IT staff not only provide you with 100% of their attention, but they are physically located onsite. This allows them to respond and fix issues quickly as they are familiar to the network and on-site.  While most MSP's have physical offices quite a few of them are virtual and support cannot be on site. We recommend that everyone checks the SLA's before choosing an MSP. They need to be able to provide on-site and off-site support. 
Number of Technicians On-call Depending on the size of your business, how you operate and turnover, it might be viable to have more than one person available. You should be cautious about the amount of work available and scheduling on Depending on your SLA your MSP should have multiple technicians on call at any one time so that when multiple issues occur at once, they can be solved in parallel, resulting in less downtime for your business. 
Network Monitoring and Support  It is important to remember that in-house resources are only available 8 hours a day, 5 days a week and require 4-5 weeks of leave per year. Therefore, it could potentially be an expensive exercise is your team are on call after hours.  Depending on your provider and your agreement your MSP should be able to provide you with 24x7-365 support. 
Growth As your business grows you might need further resources to facilitate this growth. It might not be cost-effective to have multiple in-house resources.  Most MSP's will allow you to add users as you go, and some might require you to add a certain number at a time. i.e. 5 years at a time. 
Security and Control Utilising in-house IT staff ensures that only your employees have access to your data and information, with no outside access. In addition, as they are your employees, you have complete and utter control over their tasks and your systems. Most MSPs will happily sign NDA's and don't have any need to access confidential information. However, some MSPs might outsource their technical tasks overseas. Please check with them before proceeding. 
Longevity
As you employ your own IT staff, as long as your business is running, so is your IT department. In addition, you are not reliant on a 3rd party to provide such integral services.
Although you can expect any reputable MSP to continue operating and servicing your systems, the simple fact of the matter is that sometimes companies fold, leaving you scrambling to find a new solution.

Ultimately, every business has different needs and wants, especially when it comes to their IT services. As such, we hope these pros and cons help to provide you with a sense as to what’s best for your business.

Request a free quote today!

request