Managed IT vs. In-house IT: Choosing the Right Approach for Your Business

In 2023, the importance of a robust IT infrastructure cannot be overstated. It serves as the foundation for critical operations and facilitates efficient communication and effective data management.

When it comes to managing IT functions, businesses face the choice between opting for managed IT services, where IT responsibilities are outsourced to a third-party provider, or establishing an in-house IT department. So which of these IT management options is better? In this blog, we will break down a few pros and cons that will help your organization make an informed decision.

In 2023, the importance of a robust IT infrastructure cannot be overstated. It serves as the foundation for critical operations and facilitates efficient communication and effective data management.

When it comes to managing IT functions, businesses face the choice between opting for managed IT services, where IT responsibilities are outsourced to a third-party provider, or establishing an in-house IT department. So which of these IT management options is better? In this blog, we will break down a few pros and cons that will help your organization make an informed decision.

What Are Managed IT Services?

Managed IT services are the practice of outsourcing IT services to a third-party service provider known as Managed Service Provider (MSP). It is important you know that there is no limit to the kind of services you can outsource. From proactive administration to general IT support, and upkeep of an organization’s IT infrastructure and systems.

Here are a few key components of managed IT services

When you decide to contract Managed IT service providers, the following services are typically taken care of:

1. Monitoring and Maintenance

According to an Inap ThinkIT survey, 59 percent of IT gurus are displeased with the amount of time spent on normal IT infrastructure management operations. A whopping 84 percent of these professionals stated they could add more value to their firm if they spent less time on routine chores.

MSPs take all these burdens from your staff by monitoring the performance, security, and availability of IT systems. They proactively address issues and perform regular maintenance tasks. This ensures optimal functionality throughout your operations.

2. Help Desk Support

Unlike In-house IT support, which is typically managed by one person, MSPs provide a team of professionals with a range of technical knowledge. This enables them to provide technical support to end-users, handling inquiries, troubleshooting, and resolving IT-related issues promptly.

3. Network Infrastructure Management

If you do not have a fat budget for your network infrastructure, MSPs got you covered! They manage network infrastructure, including servers, routers, switches, firewalls, and other components, to ensure stability, security, and efficiency.

4. Data Backup and Recovery

The terror that comes with having a surprise data loss or security breach, is something that we wouldn’t wish on anyone. That is why MSPs implement data backup strategies and disaster recovery plans to protect critical business data and minimize downtime in the event of data loss or system failure.

5. Security Services

Cyber attacks are one of the biggest monsters that organizations are currently facing. Luckily, MSPs employ various security measures such as firewalls, antivirus software, and intrusion detection systems. Additionally, they perform regular security audits to safeguard against cyber threats and protect sensitive information.

6. Cloud Services

Cloud-managed services typically include ongoing security and compliance monitoring, capacity management, performance management, cost optimization, configuration management, financial management, and governance of cloud service settings.

Many MSPs offer cloud-based solutions, including cloud storage, software-as-a-service (SaaS), and infrastructure-as-a-service (IaaS), providing businesses with scalability, flexibility, and cost-efficiency.

Advantages of managed IT

Managed IT services offer numerous advantages that can significantly benefit businesses of all sizes. By outsourcing IT functions to a trusted third-party service provider, organizations can tap into a wealth of expertise at affordable costs, enhanced scalability, and unlimited access to round-the-clock support and proactive maintenance.

Here are some advantages of opting for managed IT services:

1. Access to a Wide Range of Expertise, All in one Place.

As we had established before, contracting MSPs like Telco ICT gives you access to a team of IT professionals with a range of different specialties. This means that you can anticipate receiving a wide range of services with a wider skill set, the certainty of 24/7 client assistance, and the promise of excellence.

2. IT Costs and Efficiency

Imagine needing the services of your In-house IT person, but they took an impromptu sick day off, or something just happened and they couldn’t make it to work. This is why you need to contact a Managed IT service provider. MSPs like Telco ICT will come to your office at whatever time you need the services. This guarantees you no downtime throughout your operations.

By outsourcing IT services to an MSP, your business eliminates the need for hiring and maintaining a large in-house IT team. This lowers the expense of salaries, benefits, education, and infrastructure. By giving access to a qualified team of experts for a fraction of the cost of operating an internal IT department, managed IT services offer a cost-effective substitute.

MSPs typically operate on a subscription or contract basis. This means that the monthly expenses are predictable and no surprises at all. This allows your organization to enjoy better budgeting and financial planning by eliminating the need for unexpected expenditures on IT infrastructure upgrades, software licenses, or hardware replacements.

3. Scalability and Flexibility

We can all agree that your businesses are not what they were 5 years ago. Your business needs to keep changing as the world evolves. New technologies come up now and then and we need to keep up to stay relevant. It’s all about what you offer now, and whether you’ll be able to offer the same a decade later.

Managed IT services provide scalable solutions that allow for change to meet your business’s changing demands. From time to time, the service provider may simply modify resources, infrastructure, and support as needed as the firm expands or demands changes. This reduces the need for companies to spend money on more IT resources during expansions or pay for underused services during slower times. Either way, you are on the winning team!

4. Enjoy 24/7 Reliability

For you to retain a loyal customer base, you need to provide reliable services at all times. Similarly, the IT support for businesses that you choose needs to be reliable round the clock.

Managed IT services often provide 24/7 monitoring and support, ensuring that IT systems are constantly monitored for performance, security, and reliability. Any issues can be addressed promptly, minimizing downtime and maximizing productivity. This proactive approach to maintenance and support will help your business maintain efficient operations, avoiding costly disruptions.

5. Access to Advanced Technologies and Expertise

An in-house IT person cannot master everything in the industry. Even if you have a team of in-house IT professionals, their expertise is limited to only what they have used and tested. On the other hand, an MSP can easily recommend a better solution, as they have worked with many other organizations, which informs their decision on what works better in different scenarios. They have expertise across a wide range of technologies and industry best practices.

Additionally, MSPs stay up-to-date with the latest advancements and employ cutting-edge tools and technologies to enhance efficiency and productivity. You can leverage this expertise without the need to invest heavily in research, or training.

6. Get Space to Focus on Core Competencies

In the world of IT, being a Jack-of-All-Trades does more harm than good! You need to focus on what your team is exceptional at and leave the rest to those that can do it better.

By outsourcing IT functions, you can focus your time, energy, and resources on their core competencies and strategic initiatives. This will allow you to concentrate on driving business growth and delivering value to their customers, rather than getting caught up in the complexities of IT management.

7. IT Security and Compliance

Data security is a critical concern for businesses in today’s digital landscape. A very quick way to lose customers is by having a system breach that will leave their data vulnerable. Additionally, being caught on the wrong side of the law can be more costly than contracting an MSP.

Data security is a top priority for managed IT service providers like Telco ICT. We take strong precautions to shield critical data from online dangers. As a result, the risk of non-compliance and related fines is reduced. We also help organizations follow industry-specific compliance standards, which may sometimes be hard to maintain on your own.

To maintain business continuity in the face of unforeseen occurrences, MSPs also create thorough backup and disaster recovery plans. They set up recovery plans, build redundant systems, conduct routine backups, and lessen the impact of disruptions so that your business can swiftly resume operations.

Disadvantages of Managed IT services.

While managed IT services offer numerous advantages, it’s important to consider potential disadvantages as well. Though few, here are some potential drawbacks that we think are worth mentioning:

1. Over-dependence on Third-party Providers

Outsourcing IT functions means relying on an external service provider for critical aspects of your business’s IT infrastructure. While it is not such a bad thing from an efficiency perspective, this can lead to a level of dependency, where your business is reliant on the performance and responsiveness of the managed service provider. If the provider experiences any issues or fails to deliver on their commitments, it can have a direct impact on your business operations.

2. Limited Control and Customization

A little control over what you get is always good because you’ll even enjoy working with the systems in place. However, with managed IT services, businesses may have less control over the customization and configuration of their IT systems.

It’s possible that the service provider’s standard operating procedures and practices don’t quite match your unique requirements. The availability of customization choices can be constrained, and working with the provider to incorporate adjustments or new technologies would be necessary.

Ultimately, it is always important to weigh the options and choose one that perfectly fits your business needs and priorities. Also, by carefully researching and vetting a reputable and trustworthy managed IT service provider, some of these worries can be reduced, and successful collaboration can be guaranteed.

What are In-house IT services?

The term “in-house IT” describes the creation of an internal IT department within a company. The company takes on the duty of administering and maintaining its IT systems and infrastructure rather than contracting out IT tasks to a third-party service provider.

This has no limit to the number of professionals your IT team will have. You can hire as many as you want depending on the size and need of your business.

Why should you choose In-house IT services?

1. Full Control and Customization

One of the major reasons why you should consider having an in-house team. It provides your business with complete control over its IT system. This means that you can have customized solutions tailored to specific needs. It will enable your business to have direct influence over technology choices, configurations, and development processes.

2. In-depth Knowledge of the Business

Nobody knows your business better than your internal team!

In-house IT teams have a thorough understanding of the business, including its operations, processes, and special IT requirements. Due to their extensive experience, they can create IT strategies that are in line with the unique requirements and objectives of the company, resulting in a personalized use of technology.

3. Direct Interaction and Collaboration with Employees

Internal IT teams collaborate and communicate directly with other departments, staff members, and customers. Due to their closeness to users, IT professionals are better able to comprehend their demands, offer personalized assistance, and spot potential for technological advancements.

We have seen the good and bad, for these options, but what sets each apart from the other? The following section is a breakdown of Managed IT vs. In-house It in a nutshell:

Disadvantages of in-house IT

While in-house IT can offer advantages, it is important to consider potential disadvantages as well. Here are some potential drawbacks of relying on in-house IT:

1.Higher Costs

With In-house IT, it is very difficult to predict the monthly costs of IT operations. This can lead to surprise expenditure when a need for IT infrastructure arises.

Also, building and maintaining an in-house IT department can be expensive. Costs include salaries, benefits, training, hardware and software purchases, infrastructure maintenance, and ongoing upgrades. Particularly for small and medium-sized enterprises with tight resources, these costs can pile up quickly.

2. Limited Expertise and Skills

It is typically impossible to hire a team where every IT needs are catered for. You’ll have to hire a very large team, from cybersecurity experts to Microsoft 360 experts. This is not very economical for any business.

Additionally, In-house IT teams may not possess the same breadth of knowledge and expertise as managed IT service providers. IT professionals within the organization may have limitations in terms of specialized skills or keeping up with rapidly evolving technologies. This could result in inefficiencies, slower problem-solving, or missed opportunities for innovation.

3. Staffing and Resource Challenges

Recruiting, training, and retaining skilled IT professionals can be a time-consuming and resource-intensive process. It may be challenging to find and attract top talent in a competitive market, and turnover within the IT team can disrupt operations and continuity.

Additionally, the internal team’s capacity might be limited, which could pose challenges in handling unexpected workloads or spikes in IT demands.

3. Lack of Scalability and Flexibility

Scaling resources and making adjustments to shifting business needs may be challenging for in-house IT departments. It could be difficult to swiftly ramp up resources or implement new technologies as the firm expands or encounters changes in its IT requirements. This may lead to inefficiencies, hold up the start of projects, and eliminate the potential for agility.

4. Increased Responsibility and Liability

There is only so much that an organization can handle without compromising even a single process.

When a company uses in-house IT, it is accountable for maintaining and protecting its IT infrastructure. This includes putting in place strong security measures, making sure that laws are followed, and handling data breaches or cybersecurity events. It can be stressful and expensive to manage these tasks because they require continual investment, supervision, and expertise.

5. Potential for Lack of Objectivity

Internal IT teams may become ingrained in the procedures and culture of the company, which could compromise their objectivity. The adoption of new technology or new perspectives on IT strategies may be impaired by their limited exposure to external best practices and innovations.

Examples and use cases for Managed IT services and In-house IT teams:

In this section, we are going to determine who needs which service for their business. It would make no sense to employ an option that either over-serves you or under-serves you. Below is s summary of a few use cases that perfectly make sense:

1. For Managed IT Services:

Although there is no limit to who can use these services, the following use cases are the most ideal:

• Small and medium-sized businesses (SMBs): SMBs often have constrained IT budgets and resources. They may access enterprise-level technologies and expertise with managed IT services without incurring the heavy expenses of setting up an internal IT department.
• Healthcare industry: Healthcare organizations must adhere to stringent legal regulations like the HIPAA (Health Insurance Portability and Accountability Act) since they handle sensitive patient data. Healthcare-specific managed IT services may protect patient data, put in place strong security measures, maintain electronic health record (EHR) systems, and offer IT support for medical staff, freeing up healthcare personnel to focus on patient care.
• Financial institutions: Banks, credit unions, and other financial institutions handle vast amounts of confidential data and face stringent regulatory compliance standards. With managed IT services they can get solutions for secure data storage, network monitoring, fraud detection, disaster recovery, and compliance management.
• E-commerce businesses: Online retailers rely heavily on their IT infrastructure for website performance, secure transactions, inventory management, and customer support. They can benefit from managed IT services for website hosting, load balancing, security evaluations, payment gateway integration, and customer relationship management (CRM) programs.
• Startups and fast-growing businesses: Startups and rapidly expanding businesses often require scalable IT solutions to accommodate their growth. Managed IT services can provide cloud-based infrastructure, scalable storage solutions, software development support, and agile IT strategies.

2. For In-house IT Services:

The most ideal use cases include:

• Large enterprises with substantial IT needs: Organizations with complex IT requirements and extensive infrastructure may benefit from establishing an in-house IT team. This allows for greater control, customization, and alignment with internal processes and policies.
• Highly regulated industries (e.g., finance, healthcare): Industries with stringent regulatory requirements often prefer an in-house IT approach to ensure compliance and data security. This is because having direct control over IT operations enables businesses to meet specific industry standards and regulations effectively.
• Unique technology requirements specific to the business: If your Business needs highly specialized technology requirements that are unique to its industry or operations, you may find it advantageous to have an in-house IT team. This ensures that technology solutions are developed and tailored to meet specific needs and business objectives.

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

The needs of your company will determine whether you should create an internal IT team or rely on managed IT services. To help your firm scale or to provide the knowledge you need, you can enlist the aid of other resources as needed. To determine the best choice for your unique business environment, it may also be advantageous to undertake a cost-benefit analysis and speak with IT experts or service providers.

Consider aspects including:

• Your budget,
• IT demands,
• Scalability requirements,
• Expertise availability, and
• Long-term goals.

Ultimately, you can completely rely on managed IT services like Telco ICT to avoid paying a full-time in-house crew. This way, the burden of spending a hefty budget on an internal team can be lifted off your shoulders. You will also set up your business for scalability and long-term success.

Telco ICT provides managed IT services tailored to your company’s requirements. We are available to handle all of your infrastructure needs or to assist your in-house IT team. We will enhance your security measures, streamline your communication channels, and ensure speedy recovery in case of a disaster. Managed IT services are the safest and most reliable option when it comes to business scalability and long-term success.

Conclusion

When choosing between managed IT services and in-house IT, it is crucial to consider the specific needs and priorities of your business.

Managed IT services provide expertise, cost-effectiveness, scalability, 24/7 support, and proactive maintenance and security. These benefits can help businesses focus on core operations, leverage specialized skills, and stay competitive in the digital landscape.

On the other hand, in-house IT offers full control, customization, immediate response, in-depth knowledge of the business, and the potential for long-term cost savings. This approach is suitable for organizations with unique technology requirements, substantial IT needs, or highly regulated industries.

Regardless of the chosen approach, it is essential to continually evaluate and adapt.