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Are Managed IT Services More Cost-Efficient Than An In House Team?

It has been a hot topic of debate among experts about which is more cost-effective: managed services or in-house IT support? 

In reality, it depends.

The things you need and what is beneficial to you will vary depending on your circumstances.

The discussion in this article is narrowed down to the most crucial points to make your decision easier.

A Comparison Between Managed IT Services And In-House IT Capabilities:

It is probably not a good fit for your business organization to use managed IT services. Having an internal IT department may also not be the best option either. To compare Managed IT Services with in-house IT solutions, it is crucial to consider the business’s infrastructure and the factors that drive its productivity.

You may save money by doing everything in-house if your business has fewer than ten end-points or PCs. On the other hand, if a business has over 200 PCs, a Managed IT Service may provide that company with the technology and resources it needs to improve productivity, network performance, and overall efficiency.

We will compare some factors to help you determine which is best for your company. Having an in-house IT department or a Managed IT Service.

Required Skills

You should consider the skills required when choosing whether or not to outsource your IT to an MSP. You can benefit from a diverse, evolved, creative, and flexible solution with a managed services provider. Individuals can count on a team of highly skilled and various professionals. An internal IT employee might not provide such a variety of skill sets.

As part of their training program, MSPs will also keep their staff updated on the latest technologies. Without paying for additional training, you get the benefits of this newest knowledge without incurring additional costs.

Furthermore, a professional MSP can manage complex tasks and simplify simple functions with their experience and teamwork.


A managed service provider allows you to adjust your operations as needed to meet changing business needs. It is not easy to scale up an in-house IT department since hiring and training staff. In-house IT teams also face specific unique challenges when scaling down. Depending on the circumstances, scalability issues can lead to an under or overworked internal team.

Flexible Scheduling

During regular business hours, the in-house IT staff is always on hand to assist. What about in an emergency? Technical issues may arise during off-hours as well. With managed IT services, you can receive support outside of business hours. Your contract can stipulate this.

A managed service provider can also provide cover for an employee who is on leave or sick. When you hire in-house, you will need to train and provide backup in the event of an absence.

Site-based vs Off-site

You may opt to hire an in-house employee if your business needs client-facing employees. It gives you greater control. In addition, it’s worth noting that many MSPs offer resource support. This means they can provide services in-house and work as de-facto employees when it comes to client-facing responsibilities. 

An MSP has an advantage in that they get pretty comfortable with your business quickly and integrate well into it thanks to the training and skill development they receive.

Managed It Services Versus In-House It: Which Is Cheaper?

Now that you’re thinking about it, you’re probably wondering, how much is it? Information Technology costs vary widely from one organisation to another. In the end, your company’s technology budget depends on how stable and efficient you want your IT infrastructure to be.

When deciding which service to use, the cost is a significant factor. Here are some points to consider:

Salary Cost

Paying salaries to maintain an in-house IT team is significantly more expensive than what you would pay an MSP. A higher-skilled workforce will require higher wages. Using an MSP reduces this cost a great deal. In essence, you’re paying less to get the same skills.

From a human resources standpoint, you are responsible for paying employee salaries and benefits. In the MSP model, you only pay the company accountable for its employees’ wages and benefits.

Training Cost

You must continually train your IT staff since the industry is constantly changing and evolving, and your employees should know current industry practices. That training will be expensive. Using a Managed Service Provider means you don’t need to worry about training, as their team will provide it at no additional cost to you.

Reduced Recruitment Costs

If you use an MSP, you will save time and money by reducing the number of in-house IT staff you need to hire, train, and handle HR-related tasks. 

This doesn’t mean an in-house IT team can’t exist. 

Today, many companies operate a hybrid approach, which combines an in-house IT department with an outsourced partner. Utilizing this model allows your internal IT team to focus on high-impact projects while the managed service provider can manage the day-to-day tasks.

A Better Budgeting System

Another factor making managed service providers cost-effective is their ability to help you plan for the year ahead accurately. With a monthly fee, unforeseen IT expenses are minimized or eliminated. As a result of the accurate cost calculation, you can invest and focus more on other company areas.

Other Costs

When an In-house team is hired, you’ll need to provide computer equipment, office space, utilities, and other services, all of which have associated costs. If you go with an MSP, the outsourcing company handles these costs.

Final Thoughts

It won’t matter if you’ve outsourced your IT functions before or if you’re considering the idea for the first time. It’s something you should research and consider every year. Working with MSPs has many benefits that significantly outweigh the effort involved. 

Most of the time, an MSP is a lot cheaper than having an in-house IT team. In most cases, hiring an in-house IT professional or building your own IT department with equivalent technology capabilities to an MSP is more costly.