Managed Services vs. In-House IT Specialists: The Pros & Cons
Whether you’re a start-up or a small but fast-growing company, the question of how to manage your business’s IT infrastructure will need to be answered sooner than later. Would you prefer to have your own in-house IT specialist? Or does it make more sense to partner with a managed services provider (MSP) to handle all of your IT needs?
Determining which solution is best for your business is a decision that shouldn’t be taken lightly – but we can help. We’ll break down the roles of both in-house specialists and MSPs, examine what each can offer your business, and discover what their limitations might be. After identifying the pros and cons of both, you will be able to make a better-informed decision about the direction that will best suit your company.
IN-HOUSE IT STAFF
Pros of Having an In-House IT Staff:
• Onsite Availability: Arguably the biggest benefit of keeping your IT management in-house is the ability to have immediate support whenever you need it. From routine issues to major crisis management, an in-house IT team will always deliver the shortest response time. There’s a certain degree of security in knowing that if there’s a technical issue of any magnitude, you can speak with an onsite IT professional within seconds.
• Business-Specific Expertise: Over time, an in-house IT specialist will develop a deep knowledge of the company’s internal infrastructure and systems, which better equips them to be able to troubleshoot issues.
• More Control Over Assets: Some businesses might find it more preferable to maintain greater control over their IT infrastructure. Keeping your IT services in-house allows you to oversee everyday IT operations easily.
Cons Of Having an In-House IT Staff:
• Higher Personnel Costs: Hiring internal IT staff can become very expensive. In addition to the employee’s salary, you’ll likely be on the hook for their health benefits (at least in part), paid time off, 401k, payroll taxes, and costs/resources associated with training.
• Off-The-Clock Issues: Let’s assume that your IT personnel works an average of 8 hours a day from Monday through Friday. What about nights, weekends, and holidays? If an unexpected issue should arise when members of your IT team are unavailable to respond, it can lead to a serious loss of productivity due to operational downtime.
• Limited Experience and/or Knowledge of Technological Advances: In many cases, an in-house IT specialist – while skilled in many areas – may not have access to the best and latest technologies. In the IT support world, ongoing training is absolutely critical. Unfortunately, most small-to-medium-sized businesses aren’t able to support the cost of continual training for their in-house IT team. Occasionally, an internal IT employee may encounter a problem with which they’re unfamiliar. In this case, an outside IT professional may need to be consulted to resolve the issue, which will incur additional costs for the company.
• Lack of Redundancy: Businesses all too often become overly reliant on a single in-house IT specialist who holds the “keys to the kingdom,” so to speak. All that knowledge residing with one person who can leave whenever they want is potentially catastrophic. Not only is the company risking loss of valuable data should the in-house IT specialist “go rogue,” it’s also setting itself up for an unnecessarily challenging training process for the employee’s replacement in the event of their departure.
• Inability to Implement Best Practices: Businesses that choose to manage their own IT integration have to bear the costs, maintenance, and support of the software and hardware they will use. Limited budgets for these expenses may prevent the company from using the latest and best technologies, which may in turn hamper overall performance.
MANAGED IT SERVICES
Pros of Managed IT Services:
• Round-The-Clock Network Monitoring and Remote Support: One of the greatest benefits of partnering with a managed services provider is that you get network monitoring and remote support 24 hours a day, 7 days a week, 365 days a year.
• Calculable Costs: For a flat-rate monthly fee – often less than the salary of a single in-house IT specialist – you gain an entire team of dedicated engineers with the know-how to manage all your IT needs. Apart from paying for the services you’ve agreed upon, you won’t have to be concerned about incurring additional expenses due to training staff, certifications, ticket systems, or remote monitoring and management. MSPs have already invested in the latest enterprise management software, virus protection software, management servers and workstations, and redundant backup solutions – so you don’t have to!
• Service Level Agreement (SLA): This legally binding document lays out exactly which services the MSP will provide for you and what your business’s responsibilities in the partnership will be. The SLA assures you that the MSP will deliver maximum uptime, minimum response time, and consistent quality of service.
• Broader Skill Base: Since they often work with a wide variety of clients spanning many different industries, MSPs are better equipped to recognize and solve more complex and unusual issues than your typical in-house IT specialist. Most problems can be quickly and efficiently resolved remotely. Managed services technicians are continually learning, training, and expanding their knowledge and capabilities, in order to be able to provide you with the most effective and up-to-date IT solutions.
• Vast Array of Services: MSPs offer a wide range of IT services to meet your business’s specific needs, including (but not limited to) monthly server maintenance, daily server backups, offsite replication, and antivirus licensing/management.
• Shared Access to Modern Technologies and Resources: Managed services providers often partner with IT vendors to get better pricing and deals. Memberships in IT organizations allow MSPs easy access to resources that might not be available to the general public (including your in-house IT specialists). MSPs typically utilize highly advanced software for monitoring and maintenance – software that would likely be too expensive for a smaller business to afford for their IT functions alone.
• Free Network Consultation and Business Analysis: The initial consultation – offered at no cost or obligation to you — helps the MSP identify which network solutions could best address your business’s specific needs, based on your current infrastructure and future IT objectives. A reliable provider will strive, even prior to the on-boarding process, to understand your business and determine exactly what your users need to help achieve the company’s goals.
• Scalability: Managed services providers allow you to scale up to higher levels of service to handle peak demands as your business grows.
• Greater Accountability: When your IT infrastructure is being managed outside the company, the risk of internal sabotage is greatly reduced, if not eliminated.
Cons of Managed IT Services:
• Up-Front Costs: Your company’s network applications, internal networking, and software products will need to support cloud integration in order for an MSP to provide their services remotely. Upgrading your current IT infrastructure to cloud-readiness may incur significant up-front costs. While this may be tough on your budget at first, the overall cost savings in the long run more than make up for the initial investment.
• Limited On-Site Availability: Not having an IT professional onsite may translate into longer response times, which could prove problematic in the event of an emergency. Minimum response time, as defined in the SLA, can assure you that your concerns will be addressed as soon as possible based on the immediacy of the need.
• Minimized Control of Assets: Compared to keeping your IT management in-house, outsourcing services to an MSP will, by necessity, prevent your company from having total control over your infrastructure. This may be more important to some businesses than others. Ultimately, most companies simply want reliable and secure IT services at a price that fits their budget.
Like any other business strategy, the decision about whether to employ an in-house IT team or outsource IT services to a managed services provider is crucial. Managed IT services may not the be the best option for every organization. If your business has only a few endpoints or computer users, it may make more sense to keep everything in-house. If your company has a much higher number of users, a managed services provider may better be able to offer your business the technology and tools it needs to enhance the company’s network, productivity, and overall success.
If you decide to partner with an MSP, the role of an in-house IT team does not necessarily need to be eliminated. Combining the knowledge of internal IT staff with the expertise of outsourced IT professionals can create a collaborative relationship that ultimately ends up benefiting the business – and isn’t that the point? As a result of increasing cybersecurity concerns, some companies are choosing to outsource the entire security function of their IT, including archiving, data storage, and mobile device management. This hybrid approach allows businesses managing their IT in-house to free up staff to focus on IT projects that will help their company generate revenue.
Whether your business is looking to minimize expenses, boost earnings, streamline processes, or all of the above, your company should consider partnering with a managed IT services provider.
DataGroup Technologies, Inc. (DTI) offers IT services and solutions to businesses of all sizes and industries. We strive to provide significant value and outstanding service to all of our clients by acting as your business’s IT group. If your company or organization could benefit from managed IT services, please give us a call at 252.329.1382.