Managed IT Services Provider vs. In-House IT: Which is Right for Your Business?

In today’s rapidly evolving technological landscape, with more and more cloud or “as-a-service” offerings, businesses are faced more than ever with the question of whether to manage their IT needs in-house, to outsource to a Managed IT Services provider, or a hybrid of both.

These options each come with their own set of advantages and considerations. In this blog, we explore the benefits of having a Managed IT Services Provider with the aim of helping businesses to make an informed decision regarding the management of their IT infrastructure.

The Challenges with In-House IT

Managing IT infrastructure in-house involves having an internal IT department handle all technology-related tasks and responsibilities. This approach has been the traditional norm for many organisations and offers organisations full control and familiarity with their internal systems. However, with the rapidly evolving technology landscape, managing your infrastructure in-house comes with a set of challenges that need to be considered.

  • Resource Allocation: Building and maintaining an in-house IT department requires substantial investments in terms of human resources, infrastructure, and ongoing training. Hiring skilled IT professionals and providing them with competitive salaries and benefits can be costly. However, something less commonly considered is the churn of staffing, given that people will look to advance their careers and with limited roles in an internal IT department, this challenge can often lead to them looking outside of the organisation.
  • Limited Expertise: IT is a broad and ever-evolving field encompassing various specialised domains. Building an in-house team that covers all aspects of IT can be challenging. It may be difficult to find and retain employees with expertise in areas such as cybersecurity, cloud computing, network management, and emerging technologies. As a result, organisations can often lack the depth of knowledge needed to effectively address complex IT challenges and stay ahead of the curve.
  • Scalability and Flexibility: Scaling an in-house IT department can be a complex and time-consuming process. Businesses need to hire and train additional staff, invest in infrastructure upgrades, and ensure seamless integration. This scalability can pose a challenge in times of increased workload or project demands.
  • Keeping Up with Technology: Staying up-to-date with rapidly advancing technologies requires ongoing training and professional development for in-house IT staff. This means allocating time and resources for continuous education and certifications. Failing to invest in training and upskilling can lead to a knowledge gap within the team and hinder the organisation’s ability to leverage new technologies effectively.
  • Continuity and Coverage: In-house IT departments may face challenges in providing round-the-clock support and coverage, particularly during weekends, holidays, or in case of emergencies. Maintaining a fully staffed IT team to address critical issues can be expensive and impractical for many organisations, due to system failures or security breaches during off-hours can have a significant impact on productivity, customer satisfaction, and revenue.
  • Driving Innovation: Internal IT teams often spend a significant amount of time on day-to-day operations, maintenance tasks, and troubleshooting, leaving limited capacity to focus on strategic initiatives and innovation, that can drive business growth.

By considering these challenges, businesses can make an informed decision about whether to maintain an in-house IT department or explore the benefits of outsourcing to a Managed IT Services provider.

Advantages of Outsourcing to a Managed IT Services Partner

Managed IT Services offer a viable alternative for businesses looking to optimise their IT operations while focusing on core business objectives. Here are the key advantages of outsourcing IT functions to a Managed Service Provider (MSP):

  • Access to Specialised Expertise: MSPs (such as Krome) employ a team of highly skilled professionals with diverse expertise, including cybersecurity, network management, data backup, and more. By leveraging their specialised knowledge, businesses gain access to the latest technologies, best practices, and proactive monitoring to mitigate risks effectively.
  • Cost Optimisation: Outsourcing IT services to an MSP can provide a stable and fixed-cost model. Instead of investing in infrastructure, software licenses, and training, businesses can access a comprehensive suite of services at a predictable monthly cost. MSPs offer flexible plans tailored to specific business needs, enabling better budget management and cost optimisation.
  • Proactive Monitoring and Support: Managed IT Services providers offer proactive monitoring of IT infrastructure, ensuring early detection and resolution of potential issues. With 24/7 support and maintenance, businesses can experience minimal downtime, enhanced system performance, and improved overall productivity.
  • Scalability and Business Continuity: MSPs can readily adapt to changing business requirements and scale IT services as needed. Whether it’s expanding operations, supporting remote workforces, or undergoing digital transformation, MSPs provide the flexibility to meet evolving demands. Additionally, they implement robust business continuity and disaster recovery plans, minimizing the risk of data loss and ensuring uninterrupted operations.

While in-house IT departments have long been the norm, the advantages of Managed IT Services are difficult to overlook. By outsourcing IT functions to a reputable MSP, businesses can unlock the benefits of specialised expertise, cost optimisation, proactive monitoring, scalability, and business continuity.

With global IT outsourcing spending projected to reach $519 billion in 2023, a 22% increase over 2019’s numbers, the statistics speak to the growing recognition of Managed IT Services’ value to businesses.

Managed IT Services Partner – The Hybrid Approach

In reality, while businesses may consider running a self-sufficient IT department themselves or at the opposite end of the spectrum, completely outsourcing their IT function, it’s not uncommon at all for the right approach to be a hybrid of the two.

With the hybrid approach, in our experience, companies tend to outsource specific areas of responsibility to their MSP, for example:

  • Backups – A commonly outsourced element to an MSP, allowing the internal in-house IT team to work on systems, safe in the knowledge that the data is being protected by a monitored backup with an SLA and reporting from the MSP, a task which can often fall to the bottom of a busy internal team members priority list.
  • Patching and System Updates – Again this task can often be seen as mundane and internal team members whilst enthusiastic about challenging tasks can find day-to-day maintenance less enjoyable, naturally subconsciously deprioritising it.
  • Cyber Security – Top of the list for a number of organisations these days is managing their IT in-house but outsourcing their Cyber Security services or SOC (Security Operations Centre) operation. This gives management a level of confidence that they are being protected from the worst without having to employ a range of different staff and skills just to support this one crucial area.
  • Outsourced Helpdesk – By outsourcing the internal IT helpdesk function, organisations gain access to a team of skilled professionals who are dedicated to resolving technical issues efficiently. Allowing employees to focus on their core responsibilities without getting sidetracked by day-to-day IT problems, leading to improved productivity and uninterrupted workflow. Outsourcing also offers the advantage of 24/7 support, ensuring round-the-clock availability and quick response times.

Working together to ensure success

Working alongside the internal team and performing as part of a single larger team, to work together on the challenges of keeping an IT estate well-run and maintained is a key skill for an MSP to be able to bring to the table in these hybrid environments.

With businesses continuing to push for a move of IT from a Capital Expenditure (CapEx) budget to an Operational Expenditure (OpEx) budget item, supported by cloud, subscription services and various As-A-Service models,  companies are often looking to buy their IT support in the same way and MSPs can play a key part in helping achieve this.

Ultimately, the decision to outsource IT functions should be based on careful consideration of the unique needs, resources, and strategic goals of your organisation. By partnering with a trusted Managed IT Services provider, such as Krome, businesses can redirect their focus to core business objectives, while enjoying the peace of mind that comes with knowing their IT infrastructure is in good hands.

As an MSP, we understand that outsourcing IT functions can be a daunting decision. However, the advantages of partnering with a Managed IT Services provider far outweigh the challenges of managing an in-house IT department. With our extensive knowledge and experience in IT services, we can help you develop a customised plan that addresses your specific business challenges, and objectives.

If you’re looking for a reliable partner to optimise your IT operations, contact us today to learn more about our Managed IT Services. Together, we can ensure that your technology infrastructure supports and enhances your business objectives, while freeing up your internal resources to focus on driving innovation and success.

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