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Managed IT Services Provider vs. In-House IT Team: Which is Better?

Managed IT Services Provider vs. In-House IT Team Which is Better?

The larger organizations get and with advancement of technology in the market, with trying to determine the right kind of IT infrastructure to put in place.

Another issue that always arises is where companies should seek IT solutions from, through an internal IT department, or through an external MSP.

Like with any option, there are benefits that come with each, and then there are the cons.

In this article I will try to describe the main distinctive features between MSP, and in-house IT teams to help you decide whether to choose the first this or hire the second.

Understanding Managed IT Services Providers

A managed IT services provider is a third-party that is hired to provide tactical development and maintenance of the IT ecosystem and end-user computer systems of a client.

Today’s MSPs have service portfolios that range from basic network administration, security, continuity, data backup and restore, and help desk services among others.

This makes it possible for businesses to outsource under the IT MSP since this will only concentrate on the functions that are specific to their provision while the other aspects of business are handled by the company.

Understanding In-House IT Teams

In house IT team: This refers to a set of employees who are directly responsible for the management and support of the IT systems of a specific organization.

These teams are supposed to be responsible for the general upkeep of the numerous gadgets in the workplace, the protection of computer networks and the extension of aid to other employees in the organization.

Internally sourced IT teams are advantageous because they are fully aware of the internal environment and the business itself.

Cost Considerations

The first consideration someone has to make when deciding between virtually employing an MSP and having an internal department is cost.

Managed IT Services Providers:

Are usually based on a monthly service charge where clients have a specific number of services they can access in a given month.

Savings are possible here, and IT costs may be more predictable than with an internal department, which could potentially be lower if you do not need a skeleton IT staff to manage things in-house.

Moreover, MSPs must cover a range of costs relating to resources across clients, which means economies of scale can be achieved.

In-House IT Teams:

Although it may provide more control over a team, the in-house model can be costlier than outsourcing one.

Compensation costs, food and accommodation for IT staffs training and the equipment required can prove very costly.

Finally, wage costs are are other integral factor because there are the expenses incurred in employee recruitment and retention for IT professionals, which can be quite costly due to the stiff competition.

Expertise and Support

Another important concept to understand is offered by the idea of expertise.

Managed IT Services Providers:

It is common for MSPs to have a well-staffed team of IT professionals with focus on different niches that involve managing networks, protecting the networks against malicious activity, and leveraging cloud solutions.

On one hand, the issue of acquiring such a large range of knowledge can be beneficial, thus enabling businesses to use a wide spectrum of skills and experiences.

It also helps MSPs to align with the current trends in the market as well as legal necessities in order to provide optimum benefits of their services to clients.

In-House IT Teams:

An in-house team is capable of cultivating vast and highly specialized expertise on the company and the applied systems and procedures in particular.

Consequently, it contributes to more one-on-one, and real-time assistance.

But the area of specialization could be contained within the current expertise of the staff that is difficult to sustain training exercise because of the dynamic changes in technology.

Scalability and Flexibility

For any business, as it progresses and moves forward, depending on its IT requirements, either it is constantly changing or increases rapidly, the need for scale and variability emerges.

Managed IT Services Providers:

MSPs are by their nature flexible and can be scaled as needed.

It helps them change the nature of the service based on the need of a company; more services during the time that the company is growing or there is less service when the company is not growing much.

This independence means that companies can promptly meet the new requirements with little or no additional financial issues regarding new people and other provisions.

In-House IT Teams:

Even scaling an in-house team can be quite a complex task.

Taking up new trainees, implementing new tools and technology, and handling heavy loads of work involve a lot of time and effort.

Although they can give in-house teams the scope to grow, it will take time, money and efforts contrary to the future an MSP offers.

Focus on Core Business Functions

This means that they can now refocus their energy towards matters such as product development and marketing since the management of their IT assets is being handled by the MSP.

Managed IT Services Providers:

MSPs help in breaking the cycle by proving that outsourcing IT functions can lead to freeing up of more time to focus on core objectives and business development.

This h can result to obtaining efficiency and productivity since it employees will not be wasting time on IT complexities but rather, performing their core tasks.

In-House IT Teams:

In-house teams – convenient because they are always around, but some of them prefer to get involved in everyday maintenance rather than strategic initiatives having a positive impact on business outcomes.

Conclusion

The question therefore whether to go for a managed it services provider or take the in-house it team is usually going to depend with some factors to do with specific company needs, business cost and probably even the kind of vision of the company. 

Overall, the low cost, along with the versatility of its tools, coupled with professionalism, enables MSP solutions to be available for small to mid-size businesses. 

Compared to this, internal IT teams are more focused, individualistic, and backward looking while being far more-context sensitive.

Therefore, after considering the strengths and weakness of two or more processes it will be easier to make proper decision while selecting a specific channel in regards to its need and relevance to the company’s functional and strategic objectives.