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

Picture this: a critical system in your organization crashes during the busiest part of the day, bringing productivity to a grinding halt. In that moment, who can you call? The answer depends on whether you have built your own IT team or hired an outside company.

This choice can affect your budget, security, and growth. Downtime can lead to losses both in revenue and productivity. Also, 60% of small businesses rank cybersecurity risks such as phishing and ransomware as major concerns. Making the right choice is very important. Let's look at your options to find the right fit.

Understanding the Two Sides: An Analogy

Think about your IT plan like you think about your building’s maintenance:

• In-House IT: This is your own team of IT experts on payroll. Think of them as your on-site building engineer. They know your systems well and are there for quick fixes. They are part of your company culture.
• Managed IT Services (MSP): You hire an outside company for your IT needs. You pay a set monthly fee for their help. This is like hiring a property management group. You get a team of many experts. They monitor and maintain your systems remotely from a distance.

In-House IT: The Benefit of Control

An in-house team allows you to maintain hands-on control and day-to-day access as they are fully part of your business.

Pros:

• Full Control and Custom Solutions: Your own staff should know your systems and culture and understand how your company works. This helps them set priorities and solve problems well.
• Fast On-Site Help: An employee's computer can lock up. The network can go down. Your IT expert can walk over and fix it right away without the need for ticket queues or long waits.
• Deep Company Knowledge: An internal team should know your business very well and understand your unique ways of working. This knowledge helps them create custom solutions. They can also adapt quickly to internal changes as your business evolves.

Cons:

• Higher Total Cost: Hiring full-time IT employees can represent a significant investment, with total compensation packages ranging widely based on region and experience. You may also have to pay extra for tools, software, and training.
• May Have Limited Skills and Knowledge Gaps: Smaller teams may have expertise in some areas but may not be able to master every specialized field. (for example, security, cloud services, and support.) Your IT staff will likely be focused on daily troubleshooting, which can leave less time and resources to plan ahead.
• Risk From Staff Changes: What happens if your IT expert gets sick or quits? Frequent turnover in the tech industry means that essential knowledge often leaves with departing employees, potentially putting your continuity and security at risk.
• Hard to Grow: As your business grows and your IT needs evolve, scaling your in-house team can be slow and costly. Hiring and training new staff takes time and investing in new equipment before you need can put a strain on your budget.

Managed IT Services (MSP): Experts on Demand

Managed IT services professionals handle your day-to-day technology operations so you can dedicate more time to running your business.

Pros:

• Set, Flexible Costs: An MSP can consolidate your IT expenses into a single, monthly bill. This approach can lead to cost savings compared to employing full-time staff.  You can also add or remove services as your business needs change.
• Access to Many Experts: By partnering with an MSP, you gain access to a full team of certified pros in security, cloud, and more, rather than relying on a singular technician. MSPs typically use the latest tools and methodologies, which helps close any skill gaps so you can receive enterprise-grade solutions.
• 24/7 Monitoring and Support: MSPs use a Network Operations Center (NOC) and specialized tools to monitor your systems around the clock. They help detect and resolve issues—often before you even know there’s a problem. Many hacks can happen after business hours, making this 24/7 vigilance crucial for maintaining both security and uptime.
• Access to Top-Tier Tools: Because MSPs support many clients, they can typically invest in premium security and management software that may be cost- prohibitive for a single company to purchase on its own.
• Improved Security and Compliance: The right MSP will use cutting edge security practices, conduct regular risk assessments and help ensure that businesses remain compliant with industry rules.

Cons:

• Less Direct Control: Partnering with an MSP means trading some control for access to their expertise. Your contract should outline expectations for response times, priorities, and deliverables, often defined in a service-level agreement (SLA). Responses may sometimes feel slower than having staff on-site and you will not always be able to redirect their work on the spot.
• Relying on a Partner: Your operational continuity depends on the MSP’s service performance.  Choosing the right MSP is important as transitioning to a new provider can be difficult and may temporarily impact your IT.
• Communication Gaps:  Since an outside team isn’t involved in your company culture, clear communication is vital.  If communication isn’t effective, misalignments can happen.
• Data Security and Privacy Concerns: You will be entrusting your business’s data to an external partner, so it is vital to choose a reputable MSP that you trust.

The Hybrid Model: A Mix of Both

You do not have to choose between in-house IT and fully managed services.  A hybrid model allows you to maintain critical functions of both, keeping critical on-site functions while outsourcing specialized tasks.  

Under this model, your team can handle daily support and planning while the MSP can handle bigger tasks like 24/7 security or data backups. This can also include extra helpdesk support.

Key Factors Comparison for Your Business

When deciding between in-house IT, managed IT services or a hybrid model, here are some important questions to ask:

Do we need full control and customized IT solutions?

In-House IT:  This is where an in-house team can excel and is the optimal choice.
Managed IT Services/Co-Managed: Limited by the terms of the contract which can reduce level of control and flexibility.

Can we afford the salary per year for each hire?

In-House IT:  May be challenging for small to mid-size businesses.
Managed IT Services/Co-Managed: Cost is typically a predictable monthly fee.

Can we handle the risk of staff leaving?

In-House IT: Presents a higher risk in terms of continuity and knowledge retention, especially if key staff members leave.
Managed IT Services/Co-Managed: Presents a lower risk as expertise is retained within the provider’s team rather than tied to an individual employee.

Do we need 24/7 support & security monitoring?

In-House IT: Requires extra staffing and investment. Traditional support is typically only available during in-office hours.
Managed IT Services/Co-Managed: Typically included in standard offering.

Do we need expert help with security & cloud?

In-House IT:  May require hiring or retaining specialized talent.
Managed IT Services/Co-Managed: Team of dedicated professionals typically have broader experience with the specialized knowledge to focus on these areas.

What if we grow fast or have busy seasons?

In-House IT:  May be harder to scale as the business grows or needs expand.
Managed IT Services/Co-Managed: More adaptable. Additional services can be added as needed.

Final Take and Your Next Steps

The right choice can help your business grow. It can also make your business more resilient.

• Consider In-House IT if: You are a larger business with a solid budget and you need constant on-site help for specialized systems.
• Consider an MSP if: You are a small or mid-size business that wants fixed costs, 24/7 support and expert security without building an in-house team.
• Consider a Hybrid Model if: You want an in-house IT manager to oversee operations and also need to fill skill gaps, ensure 24/7 support and obtain access to enterprise-level tools without the cost of building it all internally.

Before you decide, consider these steps:

1. Assess the Total Cost: In addition to salaries for an in-house team, consider benefits, training, and hiring expenses. Also factor in software fees and the potential costs of downtime.
2. Assess Your Risk: How damaging would an after-hours system crash be to your business? Do you depend too much on one or two key individuals?
3. Assess MSPs Carefully: Ask the right questions. For example: Are you SOC 2 certified? Can I review your standard contract SLAs? How do you handle emergencies and ensure reliable backups?
4. Test Out an MSP: Consider starting with a limited engagement, such as data backup or security, to evaluate compatibility before entering a long-term contract.

Need Help Evaluating Your IT Options?

Every business runs differently and that means your IT needs are unique too. Whether you're trying to decide between building an in-house team, outsourcing to a managed service provider, or going to a hybrid model, it helps to have a clear understanding of your options.

At Acrisure Cyber Services, we offer complimentary IT consultations to help you figure out what makes the most sense for your business. Our team can work with you to:

• Review your current IT environment and identify any gaps or inefficiencies
• Break down the actual costs of different IT models
• Review your security risks and compliance requirements
• Walk you through your options

With the right guidance upfront, you can feel confident about where your business is headed.

Book a quick, no-obligation chat with one of our IT professionals today to discuss your IT strategy and get answers to your specific questions. We’re here to help you make a smart, informed choice.