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Outsourced IT vs. Internal Hire: What’s the Right Choice?

managed IT services for small businesses

Is it better to outsource IT or to hire internally?

It’s one of the most common IT decision points for growing businesses. And it’s one of the most important.

To help you analyze the options for your business, we’ve provided a straightforward assessment of the benefits and drawbacks of each model. We’ve also included our recommendations for different business contexts. Read on to improve your decision-making.

And if you want an analysis tailored to your situation, let’s talk.

The Benefits of an Internal IT Hire

There are a few reasons why an internal hire might be helpful:

They’re onsite. At least, they’re onsite from 9-5 Monday through Friday. They’ll almost certainly be onsite more often than an outsourced provider. Ideally, this means that they’re accessible and able to deal with issues that require onsite presence.

They’re immersed in the company’s needs. They are, literally, a part of the team. The company is their only IT priority, and they should be able to deeply understand its needs.

The Drawbacks of an Internal IT Hire

That said, choosing an internal hire also has a number of drawbacks.

They don’t have strengths in every IT area. A single hire can only be a generalist, with shallow expertise in a wide variety of areas, or an expert in one or two areas. It’s impossible for any single person to be an expert in all areas of IT.

They have limited time. A person can only accomplish so much – they won’t be able to service tickets and design a network and help to migrate to a new cloud solution. They’ll have to focus on a few activities each day or week.

They might not be there when you need them. If the internal hire is unavailable – during a weekend or a vacation, for example – any IT issues they’re responsible for will likely go unaddressed until they’re back. If there’s an emergency this can be a major problem. And if the internal hire quits, you’ll be starting from scratch.

They’re expensive. Entry-level salaries for IT positions are typically 50K+. If you want an employee with experience, you’ll likely be paying 80K plus. This isn’t including benefits, training time, the purchase of tools for the job, and more. The bottom line is that an internal hire is expensive.

The Benefits of Outsourced IT

Here’s why outsourced IT might be helpful:

Outsourced IT teams have a breadth of expertise. You’re not relying on one person to know everything. You’re working with a team of experts who each bring strong skills, enabling coverage of every IT focus area.

Outsourced IT teams can cover more. Bandwidth is far less limited than it is for internal hires, because outsourced providers have more resources to work with. If a user has an IT issue, it doesn’t need to delay the strategic IT project.

Outsourced IT teams are always there when you need them. Outsourced IT is always ready for your call. It won’t quit on you. It never takes a vacation.

Outsourced IT teams are cost efficient. With outsourced IT, you get access to a team of experts for a cost that’s far lower than what it would take to hire internally.

The Drawbacks of Outsourced IT

The drawbacks to choosing an outsourced IT solution include:

They serve multiple clients. Unlike an internal hire, an outsourced solution will have additional clients to consider. This should be a non-issue, but with subpar solutions, you may feel that your needs aren’t prioritized.

They may spend less time onsite. Unlike an internal hire, an outsourced solution will be onsite for checkups, not from 9-5 on weekdays. Ideally, though, this should allow them to focus on the activities that matter (versus spending time onsite on things that don’t).

When Does Internal IT Make Sense?

You may consider an internal IT solution if you have a dedicated IT focus area that could best be served by a single person onsite. For instance – if your team needs constant onsite support during working hours, it may make sense to hire internally. Or, if you have a built-out internal team and your network engineer retires, it may make sense to replace them with an internal hire.

When Does Outsourced IT Make Sense?

Our belief, though, is that even in the scenarios mentioned above, quality outsourced IT solutions can provide viable support with tailored packages that fill in staffing gaps. Outsourced IT can be a helpful supplement to existing internal resources.

And, in the vast majority of circumstances, outsourced IT is the more intelligent solution. The benefits of cost-efficiency, broad, team-backed expertise, and virtually unlimited availability make outsourced preferable for nearly all business contexts.

Ready to Make the Decision?

If you’re considering outsourced IT for your Frederick business, let’s talk.

At Xecunet, we’ve had Frederick businesses’ backs for over 20 years. We offer reliable and affordable IT services, our process keeps things running smoothly, and our expert local team is always there for support when you need it.

Switch before the holidays this year, and you’ll get free systems setup for your entire business. Get in touch with us to get started.