At Workplace IT Management, we believe that outsourcing your IT to an MSP is the best option when deciding to hire your own staff or to outsource your IT needs. However, in this blog, we will look at the pros and cons of hiring in-house staff and outsourcing your IT to another company.
As businesses expand from one employee to a team of 10 or 100, the technology needs of the business expand and become more integrated into daily operations. A critical decision arises for companies: “Should we manage our IT services ourselves or outsource them to another company?” Both approaches have advantages and challenges, and understanding them is the first step toward determining what choice is best for your company.
With this in mind, let’s explore the advantages and challenges of each option so you can learn what’s right for your business.
The Pros and Cons of In-House IT
To start with, we will discuss the pros and cons of hiring your own IT team to take care of your business’s IT needs. The first benefit we will discuss is that when you hire your own team, you get immediate access to technical support. When technical issues arise, some IT companies may make you call a helpline and wait for an hour or longer before you get a response. When you hire your own staff, you get immediate help when you need it. This will help keep your technology running smoother and prevent some issues from escalating. The second benefit of hiring your own employees to handle your IT is that you get direct control over your IT operations. You won’t have to wonder what your IT team is up to. You can directly control your team’s work, ensuring they focus on tasks that align with your company’s goals and that the work they do directly helps your business.
Another key advantage of in-house IT is the knowledge your team will gain about your organization. Since the team is part of your organization, they’ll become familiar with the specific systems you use and your company’s processes. In some cases, the knowledge an employee gains from working directly for a business can’t be matched. Using an in-house employee instead of a third-party contractor allows for more personalized solutions when issues arise instead of generic solutions that work for most companies but may not get the job done for yours.
On the flip side, having your own IT team comes with some significant costs. If you were to hire your own team, according to studies, on average, you can expect to pay over $100,000 annually. For smaller businesses, this number will be lower, but still, it’s a significant amount you may be on the hook for just because you wanted someone to take care of your technology. Additionally, a smaller team that you hire may have limited expertise when it comes to dealing with certain things. Maybe they don’t know how to protect your company from cyber-attacks or get your systems back up quickly after a hardware failure. You may think that the person you hire will understand your cybersecurity needs, but most don’t. A study found that 83% of IT leaders are considering outsourcing cybersecurity due to the difficult nature of it and the increasingly sophisticated threats. And with most in-house teams, you may not have the ability to get help at any time of day, like an outsourced IT team could provide, leaving your business potentially vulnerable during off-hours or if your IT person goes on vacation.
The Pros and Cons of Outsourced IT
Now that we have gone over the advantages and disadvantages of having your own IT team, it’s time to dive into an area we are very familiar with at Workplace IT Management, and that is outsourced IT. Outsourced IT services can offer a considerable amount of savings for businesses compared to hiring an employee. Rather than having to deal with the high costs associated with hiring full-time employees, businesses that outsource IT can save up to 70% on labor expenses, according to recent studies. This may not mean a lot for a large organization, but if you are a small or medium-sized business, this can be highly beneficial, especially for those that may not have the resources to build a whole IT department to take care of their business technology.
Furthermore, outsourcing your business IT provides access to a wide range of experienced professionals. Many MSPs have team members who specialize in many different areas, such as cybersecurity, Microsoft 365, Cloud computing, network management, hardware procurement, managed print services, and many other areas of IT technology. Managed IT services companies also usually offer 24/7 monitoring, keeping your business running smoothly with minimal disruptions and quick issue resolutions. Despite the benefits we wrote about above, outsourcing does have its challenges. The main challenges companies face when they outsource their IT is that they lose some control over the day-to-day IT operations, and while most of the time an IT company will be very responsive, sometimes they do get busy, so you could have to wait longer than you want to for help, and the person you get may not be as familiar with your business as an in-house employee would be
Moreover, suppose you need a technician to come on-site. In that case, you may have to wait a while, depending on the company, technicians can get delayed or have other clients that they need to service before they can make it to your business.
What Else Should You Consider
A few other things that we thought would be important to bring up when it comes to deciding if you want to outsource your IT or hire someone in-house is to consider your budget. Companies that outsource IT typically save, on average, between 30-40% on operational costs, making it an easy option for companies that want to manage expenses more efficiently. In addition to this, it’s important to consider your technology needs. If your business relies on specialized systems like industrial machinery or has certain compliance requirements that need to be met, such as HIPPA, outsourcing can provide already trained experts in these areas instead of teaching someone who has to be taught everything.
Lastly, it’s important to think about the size of your organization. If you were to hire a single person and then your team doubles in size from 20 to 40, the person you hired may not be able to handle all of the IT issues that happen at your business. An MSP company can adjust services as your business grows while hiring in-house may cause you to have to hire and train more people to keep up with increasing workloads.
Making the Right Choice for Your Business
In the end, deciding the best route for your business ultimately depends on its challenges and unique circumstances. Many companies find that a hybrid approach works well. A business hires a full-time IT staff member who knows all about their business and an IT company. Your full-time employee can handle day-to-day IT issues while coordinating with the IT company, which acts as a support system for your employee. This allows for flexibility in your IT operations and also more control.
After reading this, if outsourcing your IT seems like the right fit for your business, our team at Workplace IT Management can help. We offer Managed IT services personalized to meet the unique needs of your business. From our direct-to-technician help desk to having an entire team of cybersecurity experts, we have it all. We have over 26 years of experience working in Sioux Falls, SD, and throughout the states of South Dakota, Iowa, North Dakota, Minnesota, and Nebraska. Contact us today to see how we can support your IT needs.