Making the decision to outsource your IT department is a big one. It can be difficult to weigh the pros and cons, especially when you don’t have a lot of experience in the area.
Off the top, it’s worth noting a few of the main reasons most companies choose to outsource their IT needs. According to recent data, the predominant reasons companies choose to outsource are:
- 63% of companies outsource for cost savings
- 53% do so to solve capacity issues
- And 28% outsource to improve their service quality
It’s important to note that while outsourcing your IT department may not be a good fit for every business, the main advantage of having an MSP work with you is that it allows you to strategically fill specific roles and leverage your existing team in a co-managed engagement.
That’s why we’ve created this blog post – to give you a comprehensive look at outsourcing your IT department. We will start by discussing the benefits of outsourcing, then move on to the costs and drawbacks. By the end of this post, you should have a good understanding of whether or not outsourcing is right for you!
So, with that said, let’s jump right in.
The Noticeable Business Benefits of Outsourcing Your IT Department
When it comes to in-house vs. outsourcing, there are several benefits of the latter that you’ll want to consider before investing anything into an in-house option.
The Cost of IT Outsourcing (or Rather the Cost Savings)
Undoubtedly, one of the biggest benefits of outsourcing IT is cost savings. By hiring an outside provider, you’ll be able to reduce your overhead costs and focus more on growing your business.
In most cases, the annual cost of having an entire MSP managing your IT is often the same, or lower than having just one salaried in-house IT expert on staff (and that’s not even including additional expenses like benefits, time off and ongoing training).
Also it’s worth noting that for many businesses the value of an MSP goes far beyond the sheer convenience of saving time and money. Not only do they offer outstanding service at a comparatively reduced cost, but they can also handle all aspects of the engagement without the need to bring on third parties.
This can include things like:
- Network monitoring and management
- Infrastructure cabling
- Managed cyber security services
- Disaster recovery and backup planning
- 24/7 IT support
- IT consulting and vCIO services
- Hardware and software procurement
- And more
Furthermore, they build strong relationships with their clients to the point of becoming almost like an extension of their business or part of the organization itself. This not only creates further synergy and cost savings but also allows both sides to thrive and move forward together.
Access to New, More Reliable Information Technology (Including Hardware and Software)
You can also capitalize on having access to the latest technology, without needing to make major investments in equipment and software.
This access could give you a competitive edge over companies that choose not to outsource their IT needs.
Greater Breadth of Service Derived from a Greater Pool of Talents
Additionally, outsourcing delivers faster response times for service requests as well as better customer support since experienced professionals are taking care of the problem. This improved customer service will ultimately result in better customer satisfaction levels and fewer disruptions to daily operations when issues arise.
And, when it comes to IT support, MSPs offer many advantages over in-house personnel.Â
With an MSP, you get access to subject matter experts who specialize in a variety of tasks and functions. These pros are far more capable of tackling complex challenges than the average jack-of-all-trades personnel found within in-house departments.
Moreover, MSPs provide more reliable service, for instance, you’ll never be stuck in the lurch by an in-house employee who has taken a vacation, called in sick or suddenly quit.
Even with an existing in-house department, MSPs can still prove very useful as they can supplement IT support when needed, reducing time-consuming slowdowns.
In short, with an MSP you have access to specialists and more availability – two factors that put them ahead of the curve compared to traditional in-house IT persons.
Potential Downsides of Outsourcing Your IT Department
The downsides to outsourcing your IT vs. in-house are minimal, to be honest.
Primarily, the biggest potential downside is a lack of immediate control over your business’ IT day-to-day management. Essentially, you’re required to go with your MSP’s methods rather than your own. And for some business owners that can be too big of a pill to swallow.
| Learn even more about how an MSP adds value to a business with these other helpful articles: |
Also, if certain members of your leadership team are opposed to the idea of outsourcing your IT, or are unwilling to work amicably with your MSP, the entire exercise is rendered futile.
For any MSP to operate effectively within your company, they will require full cooperation from all members of your C-suite team.
Potential Upsides to In-House IT
Having an in-house IT department does carry with it a few advantages.
For starters, you won’t need to pay for provider fees as all costs associated with the in-house team will be covered by the company. Additionally, you’ll have more control over the IT processes, which could lead to better efficiency and security.
However, the comparative costs between outsourcing vs. in-house are almost never in the in-house’s favour.
Almost always it’s more cost-effective to hire a managed IT services provider.
What Are the Drawbacks of In-House IT vs. Outsourcing?
Let’s take a look at some of the additional drawbacks to having an in-house team, as well.
For one thing, it can require a lot of capital investment upfront to purchase all the necessary equipment and software — something that outsourcing providers already have. In addition, it may cost more if your team needs specialized training or expertise in certain areas due to their lack of experience.
Finally, you also have to factor in employee-related costs such as salaries and benefits when hiring a full-time IT staff. These added costs are drastically reduced by going with outsourced IT services as the provider already has the infrastructure that you would otherwise need to pay for yourself if choosing an in-house IT option.
For businesses that already have internal leadership but need more coverage, co-managed IT support can add monitoring, patching, after-hours response, security depth, and vendor follow-through without replacing the internal team.
Keep your internal IT lead. Add coverage, depth, and breathing room. See how co-managed IT support works.
Considering Fusion Computing in the Choice Between In-House or Outsourced IT Services
Choosing outsourced services for IT over hiring an in-house IT expert evidently carries with it a whole host of long term benefits that contribute to how well your company operates, pivots in changing market conditions and even the speed at which your team works.
At Fusion Computing, we offer a wide range of managed IT services and support to the Greater Toronto and Hamilton area.
As a professional, forward-thinking provider we have been helping businesses succeed since 2012.
In addition to virtual CIO and fully managed IT – with 24/7 support – we also offer cloud services and email hosting. Our cyber security management services are designed to keep your data safe from viruses, malicious software, hackers, and other cyber threats. Whether you’re updating your current systems or looking for a comprehensive solution, Fusion Computing has the tools, experience and expertise to meet your needs.
Schedule a free consultation with us today to see how we can help you grow your business and streamline costs through IT outsourcing.
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Frequently Asked Questions
Is outsourcing IT support cheaper than hiring in-house?
For most small and medium businesses, yes. The annual cost of a full MSP engagement is often equal to or less than a single mid-level in-house hire, once you add benefits, payroll taxes, training, and turnover costs. You also get a full team of specialists rather than one generalist, which means issues get resolved by the right expert the first time.
What are the main disadvantages of outsourcing IT?
The biggest concerns are reduced direct control and reliance on an external provider’s methods. If your leadership team won’t collaborate with an MSP, the engagement won’t work regardless of the quality of the provider. A well-chosen MSP mitigates most control concerns by providing visibility dashboards, regular reporting, and structured communication schedules.
What does an in-house IT team provide that an MSP doesn’t?
Deep organizational knowledge and immediate physical presence are the primary advantages of in-house staff. They understand your internal processes intuitively and can walk the floor when needed. That said, many MSPs offer on-site dispatch for hardware issues and build deep familiarity with your environment over time. The gap is smaller than most business owners expect.
Can I use an MSP even if I already have an IT person on staff?
Yes, and this is called co-managed IT support. Your internal IT lead handles projects and organizational knowledge while the MSP provides monitoring, after-hours coverage, security depth, and specialized skills they don’t have time to develop alone. It’s a practical model for businesses that want internal IT presence but need more capacity.
How do I decide between outsourcing and building an in-house IT team?
The decision usually comes down to scale, complexity, and budget. Under 50 to 75 seats, outsourcing almost always wins on cost and capability. At 100+ seats with specialized technology, you may want a hybrid model. Ask: can I afford the salary, benefits, and redundancy of the in-house roles I actually need? If not, managed IT support is likely the smarter path.
