Managed IT Services Vs IT Department: Pros & Cons

When it comes to IT needs, one of the most common questions of business owners and managers is whether to outsource to a Managed Services Provider (MSP) or to maintain an internal IT department. Both of these models have their pros and cons. Having said that, it’s wrong to say that outsourcing is better than organic IT teams. The right decision depends on the unique IT needs of an organization.

Managed IT services enable an organization to expand, upgrade, or modernize its existing IT capabilities, without the need to recruit new personnel or spend a large capital investment. Organizations from various industries are embracing outsourcing as a way to maximize their resources and keep up with the ever-changing technology.

According to Statista, companies spend around $1.2 trillion worldwide on outsourced IT services. The global outsourced services market is forecasted to increase over the next five years. In 2019, spending on third-party managed service providers is at $66.52 billion. This trend is apparent not just among large companies but also in smaller companies.

But while IT outsourcing is now very common, it is not always the best option. Some companies prefer (and are even more effective) maintaining an organic IT department. 

There are a lot of factors to consider when considering outsourcing to managed IT services against maintaining an IT department. It’s a crucial decision that can affect your operations, hence requires careful study. Part of the decision-making process is weighing the pros and cons of both options. Check out our article about Are Software Engineers Still in Demand? Choosing The Right Career

Pros and Cons of Managed IT Services

Pros

Scalability

According to specialists at managed IT services in Jackson, MSPs enable businesses to scale up or down depending on the demands of an organization. Instead of spending an unchangeable flat rate for IT services, you can increase or decrease the level of services based on your business needs.

Round-the-clock availability

Although the in-house IT department is always available on-site for your tech needs, managed IT services offer 24/7 availability. They have dependable IT support that you can call anytime for any IT-related issues to arise. This proves useful for businesses that require uninterrupted IT services.

Broader skill base

Managed IT services boast of global talent. They have IT professionals with the right qualifications for your needs. They also ensure that their tech team undergoes continuous training, learning, and capacity building to meet current and future trends.

Cost-effective

When you work with MSPs, you only pay for the services you avail of. You can choose from their levels of service that match your needs and budget. This proves useful for small businesses with limited capital.

Cons

Lack of full control

The major disadvantage of using managed IT services is that you relinquish full control over your IT to a third party. If you happen to work with an unreliable provider, you can end up with more trouble. Likewise, you are unsure of the credentials and qualifications of their

Communication

Since MSPs are located remotely, communication may be an issue. If you choose an MSP based abroad, time zone differences can affect communication. Likewise, the language barrier can be a concern, especially for international MSPs.

Security

Cyber threats are a prevalent problem. If the IT services you hired have poor security protocols, your business’ classified information can be at risk.

Considering these drawbacks, it is important to carefully vet the prospective MSP. You want a reliable third-party provider that can guarantee security, solve problems, and meet all your tech needs.

Pros and Cons of an IT Department

Pros

Familiarity with IT infrastructure

Every organization has its unique IT needs, infrastructure, and culture, organic IT teams will generally have a better grasp of the particular business as compared to MSPs.

On-site availability

Unlike managed IT services, IT departments are available on-site. This gives you full access and control over the IT services personnel. You can reach out to them whenever needed.

Cons

High costs

An IT department is composed of not less than 3 employees and all personnel are paid a living wage. This includes all the benefits of employees such as paid vacation and sick leaves, healthcare services, retirement, etc. Likewise, you also have to invest in their continuous training to ensure that their skills are up-to-date. And even if you don’t require their services, you still pay their wages. Hence, there is a continual, unnecessary expense.

Lack of IT specialists on non-business hours

Unlike MSPs that are available 24/7, organic IT services personnel are only present during working hours. There will be times when they are away such as when they’re on day-off, sick leave, or vacation. During these times, you might not have access to much-needed IT services that can put your business operations at risk.

Whether you hire an in-house IT department or work with managed IT services, it’s important to carefully assess your tech needs. Hopefully, this list of pros and cons of both options can help you make an informed decision.