Solving the Outsourced versus In-House IT Debate

These days, every business uses IT on some level. Subsequently, there are two ways that small-to-medium businesses (SMBs) handle the management of their IT resources⁠—either through in-house support, which involves hiring a single IT specialist or a small team to work internally, or through outsourcing to a Managed Services Provider (MSP). MSPs work externally to plan, implement and manage a business’ IT based on their current needs and future goals. Finding the right balance between managing resources and achieving growth can make choosing between in-house and outsourced IT difficult for SMBs. However, 72% of SMB decision makers agree that outsourcing helps them significantly improve business outcomes. A quick cost-benefit analysis will further this notion, as there are a handful of important factors that you may not have already considered as an SMB dealing with IT management.

The most obvious cost associated with in-house IT is the cost of staffing. Depending on the size of your business, hiring one IT staff member likely will not achieve the same level of support that an MSP provides—such as ticket resolutions, research and development, staff training, procurement, and strategy building. The starting salary for an IT Manager or Chief Information Officer (CIO) in Canada averages at $80,000 a year. For an SMB, this kind of annual investment could land you a well-rounded stack of services with an MSP.

Due to strains on their time and resources, an in-house IT specialist won’t be proactively planning technology strategies that will drive growth for your business. Their day-to-day is typically spent providing one-on-one employee support, as well as setting up, maintaining and monitoring current systems. A strategic and forward-thinking in-house IT team takes years of investment and training to build, which is one of the major benefits of outsourcing to an MSP. Many MSPs are equipped to provide strategic, on-the-pulse recommendations for technology adoption that will drive your business forward.

Finally, it is worth noting that the average IT department within an SMB consists of just 3.7 employees, proving difficult to achieve optimized support at all hours. An SMB’s in-house IT team will, under most circumstances, not be available 24×7 due to scheduling and size constraints.  ‘Round-the-clock support is another benefit that select MSPs offer. Integrating new technologies into your business will inevitably result in some downtime, making it critical to have the right team available to minimize productivity loss.

The consensus amongst SMBs is that outsourcing their IT function to an MSP is the right decision both in terms of meeting budgets, achieving growth and optimizing logistics. For more information on the benefits of hiring an MSP, check out our infographic below. If you’d like to learn more about Grade A’s services and how we use IT to meet business objectives, book a consultation with our team today:

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