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Patty Luxton

By: Patty Luxton on September 11th, 2019

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Internal vs. Outsourced IT Services: An Honest Comparison

Managed Services

As a managed services provider in Connecticut, we often get asked about the pros and cons of having internal or outsourced IT services. There are benefits to both, but the right decision usually comes down to the specific needs of the individual organization.

Outsourcing enables organizations to expand or replace their internal IT capabilities, without the need for a large capital investment or a commitment to hiring full-time personnel. Companies of all sizes and industries are turning to outsourcing as a way to reallocate their resources from tasks that are "keeping the lights on" to initiatives that support key business objectives.

According to the IT research firm Computer Economics, outsourcing makes up an average of 12.7 percent of companies’ IT budgets in 2019, a marked increase from 9.4 percent in 2018. What’s more, companies are spending an average of 6.7 percent of their IT budgets on external managed service providers. This growth is especially driven by smaller companies, who now spend 16 percent of their budget on outsourcing, on average.

With that said, why the growth in outsourced IT services? There are a lot of factors that influence the choice to use external IT services, and it’s a decision that requires careful reflection. In this article, we’ll go over some reasons why companies do and don’t choose to work with an MSP.

Once You Know Which Is Right For You

Once you’ve decided what to look for—whether that’s an in-house team or outsourcing—the next step is to create buy-in among the executive team and staff members.

With the executive team, focus on the bottom line with a results-oriented pitch. If you want to outsource your IT, for example, let them know that working with an MSP will be less expensive than hiring full-time employees, creating an opportunity for cost savings. You’ll also have access to a greater variety of resources and expertise.

In speaking with staff members, you should focus on the efficiencies and improvements to their daily tasks and responsibilities. For example, your employees will be glad to hear that an MSP means no more IT bottlenecks or single points of failure. There’s no need for them to worry about waking up at 3 a.m. to fix a server that’s just gone haywire.

Whether you join forces with an MSP or keep your IT in-house, it’s important to make the right decision after a careful assessment. Interested in learning if outsourced IT services might be a good fit for you? Take this quiz to help you decide.

Are IT Managed Services Right For Your Organization?

 

About Patty Luxton

Patty is Kelser's Vice President of Engineering Services and an industry veteran with 25 years of experience in the field.