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Managed Services vs. In-House IT: which is right for your business?

10/10/2024 minute read OneAdvanced IT Services

Organisations are increasingly outsourcing their IT functions to third-party providers or Managed Service Providers (MSPs), with projections showing no sign of this trend slowing down. This can be attributed to a wide range of reasons, but usually down to cost efficiency, access to specialised expertise, difficulties hiring and retaining an in-house team, scalability, and the desire to focus less on IT and more on strategic initiatives.

The alternative to this approach is relying on an in-house IT team to manage all IT operations. In this blog, we’ll look at the strengths and weaknesses of each, and discuss when best to use which approach.

Benefits of managed services

Expertise

Managed Service Providers will have a large team of experts with years of experience tackling a wide range of IT challenges. This means businesses benefit from a comprehensive skill set without the need to recruit, train, and retain an extensive IT team internally. They will also proactively manage and monitor your systems, which can be hard to achieve with an internal team being dragged in different directions. Additionally, the current tech skills shortage poses a significant challenge for in-house teams, making it increasingly difficult to match the level of expertise provided by MSPs.

Cost effectiveness

Cost-effectiveness is another significant advantage. By outsourcing your IT services to a partner, you will gain from predictable monthly charges at a pre-set rate agreed in your contract and also avoid hefty upfront expenditures on IT infrastructure. Additionally, working with an MSP will usually result in lower overall costs compared to maintaining, hiring, training and up-skilling a full-time in-house team.

Lifting the burden

By outsourcing IT services to an MSP, this will alleviate the strain on internal resources. This means that instead of worrying about an IT issue, organisations can focus on their core competencies and more strategic business activities. This partnership ensures that IT systems are optimally maintained and updated with the latest technological advancements, which can enhance overall operational efficiency.

Flexibility

Managed services can be scaled up or down based on your organisation's evolving needs. This allows companies to quickly respond to changes in technology and fluctuating business demands without the disruption of extensive internal restructuring.

Benefits of In-House IT

Direct control

One of the most significant advantages of maintaining an in-house IT team is the direct control you have over IT operations. With a dedicated team on-site, organisations can implement immediate changes and swiftly respond to any issues. However, the other side of it is that you may not have that time or the resources to do what you want to do, resulting in delay. Furthermore, with the right partner in place, they can offer round-the-clock support via the most suitable method – whether that be an on-site service desk, a self-serve portal, or a custom mobile app.

Deep integration with company culture

In-house teams are deeply integrated into the company’s culture, values and objectives, which can lead to a cohesive environment where technology seamlessly supports business functions and solutions that resonate with the workforce. This emphasises the importance of selecting the right managed services provider – ensure your cultures and values align, so you form a long-term successful partnership working towards the same objectives.

Conclusion

While in-house IT teams have their place – for example for organisations that rely on highly specialised, unique technology, the year-on-year increase in organisations turning towards managed services reflects the clear advantages of this approach. With their expertise, cost-effectiveness, and access to cutting edge technology and skill-sets, outsourcing IT services enables businesses to concentrate on their core activities rather than IT systems, building competitive advantage in the market.

At OneAdvanced, we provide tailored IT services built in partnership with the customer to meet their unique needs. We will act as an extension of the team, working alongside you to support your organisation, delivering on XLAs and ongoing optimisation. Our dedicated team, rigorous processes, and unwavering focus on user experience set us apart. Get in touch today to learn more.