They are to choose between developing an in-house IT department or outsourcing to a managed IT service provider. The issue of which is better between managed services and in-house is no longer strictly a budget issue; we are talking about scale, expertise, business continuity, and strategic alignment.
At ReThinking Consulting Services, we’ve worked with organizations of all sizes that struggle with this exact decision. Let’s break down the comparison in three essential categories: cost, control, and capability.
Cost: Predictability Vs Overhead
Budget is an issue that often comes to the fore in this discussion. At first glance, it may be that doing IT in-house is the better financial choice, especially for small and mid-sized organizations. But in fact, what you see is only the tip of the iceberg when it comes to in-house IT; there is much more to it. You also have the issues of recruitment, onboarding training, employee benefits, and the continuous investment in hardware and software.
Also, on the other hand, we see that a managed IT service is to run on a set monthly fee structure. This provides for predictable expenses and also usually includes 24/7 support, system monitoring, and updates, which have no hidden fees. Also, what we see is that by way of economies of scale, the providers can pass on to their clients access to enterprise-grade tools and services at a very low cost.
Control: Onsite Oversight Vs External Expertise
One of the main reasons companies stay with in-house IT is because of the level of control it affords. Having staff on site means that we see immediate results in issue resolution. Also, there is very easy access to the team, which in turn gives you what you see in the project, workflow, and data access. In some very regulated industries that have to meet strict data residency requirements, this is a great benefit.
But control does not always translate to capability. Many managed IT service providers have in place Service Level Agreements (SLAs) that guarantee response times, issue resolution, and uptime. Also, with the use of modern tools, which include remote access, endpoint management, and cloud backups, many tasks do not require physical presence.
Capability: Specialized Talent Vs General Support
In terms of what we see as a strength, that is in managed services. As for in-house teams, you have to put together a wide range of skills into the mix, including working, cybersecurity, cloud solutions, helpdesk, and compliance. Usually, we are talking about a small talent pool. Also, it is rare to find one or two people who can do it all.
Managed service providers staff up in many different practice areas. From zero trust security models to cloud migration, we see they have current in-field knowledge, which also includes relevant certifications and experience.
Which Is Right For You?
There is no black and white answer to the managed services in-house issue. It depends on what you, as a company, are looking to achieve, your compliance requirements, internal company culture, and growth plans.
- If you require on-site presence and direct management for your IT needs, then in-house solutions are best. Also, you have to have the resources in your budget to build out skilled internal IT experts.
- If you are looking to expand your talent pool, have stable costs, and have a partner that proactively improves your IT environment, go for managed services.
Many companies today are using a hybrid approach, which sees them keep a small in-house team for day-to-day functions and, at the same time, team up with a managed service provider for large-scale work and complex support. This, in turn, gives them what they want of both control and capacity.
At ReThink Consulting Services, we are of the mind that a great IT strategy grows with your business. As you decide between a full-service managed solution or a hybrid approach, we are here to work with you in the assessment, planning, and implementation of the solution that best fits your future.
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