In-House vs. Outsourced IT Support: Cost Comparison
The dilemma of whether to outsource your IT support versus building an in-house team is a challenge for businesses of all sizes.
You are advised to cut costs, and so you think, “If I only have a few internal IT experts manning my networks, then I can save myself all those agency fees”. But does it really save you time and money?
There can be a number of benefits, and drawbacks alike, to both outsourcing IT support and having an in-house team. Is one option better than the other? There is no across-the-board good or wrong choice; both solutions have their own shares of strengths and shortcomings. The trick lies in finding out which one works better for your business framework and precisely addresses your IT needs.
403Tech is the leading supplier of Cybersecurity, Cloud, and Managed IT services in Calgary.
Choosing how you are going to manage your IT is critical from both a strategic, technical, and even a financial perspective. Do not settle on either of the options based on suppositions or hearsay! Given the central role IT plays in your business, take your time and research — and make well-informed decisions.
As an authority in IT support, 403Tech endeavors to enlighten business owners and leaders on how to choose the best IT solutions for their organizations. Based on our extensive experience, it is advisable to evaluate all the pros and cons before you leap.
In-house IT Support
The Pros:
- You Have Better Control Of Your IT Operations: Having IT specialists fully and solely dedicated to your organization gives you better influence over issues such as the response and resolution time, designing, and implementation of individualized solutions. What’s more? The remedies can (potentially) be delivered faster, using processes that work best for your business. The internal IT department can instantly react to technical glitches that may ensue. Having a “pull-by-the-shirt” IT specialist works better for demanding fast-paced business processes. Besides, it also gives you the discretion to choose which assignments are handled first and by who.
- It Enables You to Draft Predictable IT Budgets: While the service bill for outsourcing support is relatively lower based on a fixed periodic subscription, inadvertent programs that are not incorporated in your flat-rate fee can result in extra costs. The bad news is that you do not have control of how high the additions can go. However, a full-time in-house IT expert is contracted to handle even unplanned-for emerging issues at no extra service cost.
- You Get to Work With Familiar Faces: Your in-house IT specialists have a better understanding of how your business operates. Having been part of your journey for a long time, they have a personal identity with your aspirations. The solutions they design are based on an in-depth knowledge of your IT needs from first-hand experience.
The Cons:
- You Depend on a Few Experts With Limited Expertise: Most growing businesses have just one or two technicians in their in-house IT departments. The few experts have a limited skill-base and only know as much as they have experienced. IT is a broad and intricate concept — and keeps on evolving by the day. Are you sure that a couple of IT professionals can keep up with all these dynamics? The answer is an absolute No.
- Your In-House Staff Cannot Guarantee Round-The-Clock Management: In standard settings, you expect your in-house IT support staff to only operate during regular working hours. It’s a weekend or night hours, and your systems are vulnerable with no oversight. Or, maybe your ‘IT Guy’ called in sick or left for a vacation. Conversely, outsourced service providers guarantee 24/7 support even beyond business hours, weekends, and holidays.
- Insourcing Is Usually More Expensive: It’s general knowledge that the total cost of operating an internal IT unit is way higher than that of outsourcing. You have to invest in expensive hardware and software — and ensure they are always up-to-date. You haven’t considered salaries yet; Glassdoor quantifies the earning of a single IT expert at $51,838 per year.
- It’s Time and Labor Intensive: Establishing an in-house IT support team is quite time-consuming. You will have to start from scratch, looking for equipment and personnel. Even after then, you will have to dedicate more time and resources to optimize their operations.
Outsourced IT Support
The Pros:
- Your Company Gets to Access Many Experts With Broader Skill Sets and a Wealth of Experience: It is in the interest of any IT service provider to ensure that they have top-tier specialists and facilitate routine professional development for them.
- It Gives You Access to The Latest Technologies: Outsourcing comes with the benefit of the best technologies from the support company. Any reputable IT supplier is keen to stay up-to-date and at the forefront of the latest technology trends.
- Outsource Support Companies Offer 24/7 Services: With an external IT support team, you are entitled to all-day-everyday management of your networks. Your systems are monitored round-the-clock for security issues and any slowdowns. This guarantees optimum operations in secure environments.
- Contracting a Service Provider Is Cost-Effective: You access the best technologies acquired and maintained by the support company. You also don’t have to worry about the wages and allowances for the technicians. In case of any necessary software updates, it is the IT supplier that foots the bills.
The Cons:
- You Risk Working With a Team That Doesn’t Identify With Your Frameworks: The external support team cannot claim a similar understanding of your systems and operation models as an in-house staff would. Consequently, they may not be in a position to devise jig-saw fitting solutions to your IT needs. It could even be worse if the service provider belongs to the ‘one-shoe-fits-all club.’ You should look for a support firm that assesses your networks and engages you before implementing any programs.
- You May Incur High Service Fees from Unplanned Incidences: If you are unlucky and contract a profit-oriented service provider, expect unexplained inflation in your invoices. Some even dare to assign themselves tasks, perform them, and demand to be paid. If you compare these to a salaried internal expert who handles everything that arises at no extra charge, it looks way cheaper. However, the right service provider should assist you to cut costs and draft predictable budgets.
The debate on whether to go the insource or outsource way is not about to end anytime soon. With an understanding of their windfalls and limitations, analyze your IT needs, and go for the option that addresses them adequately.
Not sure where to begin? 403Tech is here to help you. Email us at [email protected], or call (403) 215-7506.
