In-house vs. outsourced IT: Which is better to minimize business IT expenses?

In-house vs. outsourced IT: Which is better to minimize business IT expenses?

As a small- or medium-sized business (SMB) owner, there are many ways you can increase profits. You can raise prices, get more customers to buy your products and services through effective marketing campaigns, or develop a more efficient payment collection system. Technology can help you achieve all these, but it shouldn’t come at a huge cost.

Managed services providers (MSPs) like inrsITe can help SMBs maximize their technology without raising IT budgets exponentially. In terms of keeping technology expenses at a minimum, here’s how having in-house IT resources compares with outsourcing to an MSP.

Buying vs. renting

Purchasing all your IT assets such as servers and various computing hardware entails additional costs for their maintenance, upgrades, and licensing as well as IT staff wages, training, and more. When you outsource your IT infrastructure needs, these expenses are vastly reduced. For instance, outsourcing your servers eliminates maintenance costs, which include space and energy. Moreover, you don’t incur unexpected expenses resulting from poor management.

What’s more, all your IT needs are covered under predictable monthly payments regardless of how much IT support you need in any given month.

Inflexible vs. scalable IT

As your business grows, it’s inevitable that your IT requirements will, too. Managing all your IT resources can put a strain on your business growth efforts, but when you work with an MSP, you can facilitate business growth plans more seamlessly.

Whether you’re opening new locations, expanding your operations for which you’re hiring new staff, or migrating your data and programs to the cloud in preparation for growth and expansion, managed services help scale your IT usage with ease. All it usually takes is a consultation with your outsourced IT consultant, which can be accomplished by a phone call.

DIY cybersecurity vs. outsourced comprehensive cybersecurity

It’s imperative for businesses (SMBs included) to invest in robust cybersecurity tools. What isn’t imperative is for you to take on the complex tasks of managing your own cybersecurity systems. Installing managed firewalls, enabling encryption, conducting security awareness training, updating antivirus software, and other security-related tasks require the expertise of IT experts.

Permanent IT staff vs. 24/7 access to IT experts

There are benefits to having in-house IT staff who can solve everyday technical issues and/or work on IT-intensive projects. However, this setup is costly, and it’s impractical for, say, a legal firm with 20 staff to hire several full-time IT personnel to develop an automated documentation system.

That’s not to say that that said legal firm doesn’t need IT experts. It would just be more cost-effective for them to outsource. MSPs offer round-the-clock access to a wide pool of experienced IT talents who can work on every technical issue and help automate organizational workflows.

Break-fix vs. managed IT

It’s expected of in-house technicians to fix IT issues whenever they occur. But they also have to handle other numerous day-to-day tasks that can get in the way. That’s rarely the case when you work with an MSP that’s fully capable of monitoring your systems no matter the time of day. This setup boosts productivity not just of your operations staff, who can work with minimal technical disruptions, but also of your IT staff who can focus on priority projects.

The financial benefits of increased productivity are substantial, too. According to an IBM whitepaper, optimized user productivity can yield cost savings of around $200,000 as a result of reduced downtime and increased productivity. This clearly illustrates that revenue correlates with business IT efficiency.

Is your SMB in Brandon, Tampa Bay, Plant City, and Lakeland considering outsourcing IT but still has a few concerns about its benefits? Read our FREE eBook, 5 Big Ways IT Outsourcing Can Boost Your Company's Productivity.

Regardless of whether you want to lower your IT costs or maximize your existing technology resources, managed services can help. Call inrsITe to learn how we can keep your IT costs down and your systems and profitability up.