Every small business owner knows how much of a challenge IT can be. From random outages to security gaps you can’t afford to close, something always appears to be going wrong. There are two possible solutions to this problem, each with its own benefits: You can either hire an internal IT team, or leverage outsourced IT services.
But which is best? Is outsourcing really worth it, or should you stick to the more traditional path?
What Does IT Outsourcing Actually Mean?
Before delving further into the advantages and disadvantages of IT outsourcing, it’s important to understand what it is. This term is used so widely that the definition is often obscured, leading to confusion and misconceptions.
IT outsourcing refers to the use of an external expert known as a managed service provider (or MSP) to handle a variety of IT-related tasks. This provides an alternative solution for businesses that either don’t have an internal team, or are not able to effectively manage their infrastructure with existing staff. The idea is to simplify your technology, so you can focus on other matters without worrying about outages or security risks.
Common IT Outsourcing Services
IT outsourcing can take many forms. Some of the most common include:
- Fully Managed IT: Every part of your technological infrastructure is maintained and monitored for you.
- Co-Managed IT: A different managed IT model that focuses on working alongside existing staff.
- Cybersecurity Services: Specialised services that improve your security and respond to threats.
- IT Support: Resolves issues, and implements solutions to improve your IT.
- IT Consulting: Experts who offer guidance on the best path moving forward.
- Cloud Services: A service that focuses on cloud migrations, optimisation, maintenance, or security.
- Compliance Services: Focused on helping your business remain compliant with legal and regulatory standards.
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Benefits of IT Outsourcing
MSPs are becoming increasingly popular in recent years, and there is a very good reason for this. There are several compelling advantages of IT outsourcing, particularly for small businesses:
1. Cost Efficiency
One of the most compelling reasons to choose IT outsourcing services is the financial savings. Employees are expensive. You must pay for salaries, benefits, training, and sometimes additional devices. If you want an experienced staff member, you pay even more for this. The expenses associated with even one additional in-house worker can be cost-prohibitive.
Outsourced IT services, on the other hand, charge only a fixed monthly fee. This makes it an extremely effective cost reduction method for businesses who need to save money without sacrificing efficient IT management.
2. Access to Expert Insights
Outsourcing provides your business with instant access to a full team of experts, who specialise in a wide range of IT-related fields. They also stay on top of emerging technology trends, security protocols, and best practices, allowing you to take advantage of the newest information available.
3. Easier Growth
As your business grows and encounters new challenges, outsourced IT services will be right there with you. Their packages are typically designed to scale up or down relatively easily, which means you can customise their services to your exact needs at a given moment.
4. The Ability to Focus on Work
Delegating IT tasks gives you and your staff the freedom to focus on work, instead of constant troubleshooting and patching. Over time, you will see improvements in efficiency, strategy, and revenue as a result.
Disadvantages of IT Outsourcing
As always, with benefits come challenges. There are a few disadvantages of IT outsourcing that you should be aware of:
1. Reduced Control
When many IT functions are managed externally, you may feel as though you’ve lost some control over your infrastructure. While it’s important to note that you remain involved and still have the final say, day-to-day visibility is inherently lower with managed services.
2. Potential Miscommunications
Every time you introduce a middleman, the risk of miscommunications increases. Particularly if your chosen partner operates from a different time zone, or lacks contextual knowledge about your business operations, mistakes can happen and important information may be missed or poorly communicated.
3. Security Concerns
While all reputable providers follow strict security protocols, sharing sensitive data with a third party is always risky. You’ll need to put in the work to ensure your MSP complies fully with all relevant regulations.
What About In-House?
An in-house IT team offers a sense of control, immediacy, and familiarity. Your employees are right there when you need them, understand your business intimately, and can respond instantly to issues.
Some benefits include:
1. Customised Solutions
Deep, daily immersion in your company’s operations uniquely positions in-house staff to develop customised solutions. This means their initiatives will align closely with your objectives, internal workflows, and future plans.
2. Faster Response Times
Having technicians on-site can vastly speed up issue resolution during working hours. It also inherently offers better face-to-face support, in comparison to a remote third-party.
3. Greater Control
In-house IT gives you full oversight of systems, data, and processes. If your industry is subject to strict security regulations, this can be especially useful, as you’ll be able to directly ensure that best practices are followed rather than relying on a third party to do the right thing.
Disadvantages of In-House IT Support
1. Higher Costs
As mentioned prior, the costs associated with in-house staff can quickly add up. This makes it very difficult to scale your IT operations over time, as you become dependent on the number of workers you can afford.
2. Limited Knowledge
Without outsourcing, you’re reliant on the expertise of your existing staff. This might mean that you struggle to cover all areas, especially as technology evolves and threat actors invent new tactics. Over time, knowledge gaps can appear that hold your business back.
3. Security and Compliance Gaps
Your IT department might be full of dedicated workers, but they are not infallible. When resources are stretched thin, as they so often are in smaller businesses, it’s easy for major vulnerabilities to slip through the cracks. This significantly increases your risk of breaches and compliance issues.
In-House vs Outsourced IT Services: Which is Best?
While there’s no one-size-fits-all answer, the benefits of IT outsourcing make it a very good choice for small businesses. It offers a strong competitive advantage while reducing costs, striking a perfect balance. While there are some clear disadvantages, they can be easily solved with a little preparation and planning. In contrast, the problems associated with in-house IT are much harder to work around.
With that said, there are situations where in-house IT is the right answer. You might need more direct control over your infrastructure, or incredibly specialised solutions that a third party would struggle to fully understand. For this reason, it’s important to look at your business and the unique factors impacting it. The right choice is always the one that suits your company the best.
Everything You Need to Know About Outsourced IT
IT, like so many other parts of your business, requires a tailored approach. What works for another company might not work for you. When deciding whether to outsource your IT or manage it in-house, you must first consider your unique situation and then develop a solution that truly addresses your needs.
Do you need more information about IT services? National IT has you covered. As experts in this field, we pride ourselves on our in-depth knowledge of modern technology solutions that save businesses time and money. Read our ultimate guide now to learn more about IT support services.