As your business launches and grows, you may be faced with choosing between meeting your IT needs with a managed service provider (MSP) or an internal IT team. Understanding the key differences between working with an MSP vs internal IT department will help you make an informed decision.
Having an in-house team may seem like a no-brainer for many businesses whose core business functions are shaped by technology. However, managed service providers offer customized and scalable solutions that can grow with small businesses as they develop, making them a compelling alternative.
What Are the Pros of MSPs?
The main pros of MSPs are that they’re a more cost-effective solution and offer access to a wider range of expertise. Many businesses choose to outsource their IT services due to the advantages MSPs offer:
- Cost-effective solution: Investing in your own IT infrastructure can be high cost, especially as you’re growing your business. An MSP is typically a lower-cost solution than setting up your own IT team.
- A wider range of expertise: MSPs offer access to a team of experts with experience in many areas of IT management from network monitoring to cybersecurity. MSPs usually have multiple clients, giving them a wide range of experience with different industries and the issues they face.
- Reduces bottlenecks: Business continuity is improved with MSP systems as they minimize the time required to solve problems. This is because MSPs offer constant monitoring of each business’s IT infrastructure. This allows proactive identification and resolution of problems before they become bottlenecks and disrupt business efficiency.
- Scalable: A start-up’s IT needs are vastly different from those of a large, established business. MSPs are easily scalable as they help businesses maintain or extend their IT infrastructure. MSPs can easily adapt to your needs as your business grows.
What Are the Cons of MSPs?
The main cons of MSPs are having less control over your IT systems and potential communication problems. These problems can largely be mitigated by choosing the right MSP. However, take these points into account when making your decision:
- MSPs take control of your IT infrastructure out of your hands: Some less tech-savvy business owners may welcome not having to worry about technological issues. However, others may prefer more control over the technical aspects of their operations.
- Too much dependence on the MSP: When your operations have been molded by one MSP, you may encounter difficulties if you want to switch to another.
- Security risk: When a third-party provider has access to your IT infrastructure, it could expose you to the same data breaches or cybersecurity risks that they suffer.
- Communication challenges: Working with an outsider can cause communication problems for various reasons. There may be misunderstandings about how your business works, for example. Your MSP’s location may also present problems when communicating if they’re in a different time zone.
Collaboration Platforms Improve Communication
Using a service collaboration platform like Thread allows businesses to chat with their MSP through the chat software (AKA instant messaging or IM) the business already uses, like Slack or Microsoft Teams. This gives workers a direct line to technical help and facilitates the same kind of swift and effective communication that an in-house IT support team usually provides.
Studies suggest that the global average of IM adoption in businesses around the globe is around 86%. Collaboration platforms like Thread therefore build on the communication channels already established in the vast majority of businesses to facilitate communication between businesses and their MSPs.
What Are the Pros of an Internal IT Team?
The main benefit an internal IT team offers is their first-hand experience with your business’s IT needs and how they fit in with the business’s goals. Internal IT teams also benefit organizations in other ways:
- Greater familiarity with your IT infrastructure: In-house teams have a deep understanding of how the company’s IT infrastructure works. They may even have had a hand in building it. This makes them uniquely qualified to troubleshoot problems.
- Greater control over IT operations and data: This may lead to more customized solutions and better performance.
- Greater capacity for communication and coordination: Internal IT teams may provide technical support across all of your company’s departments and can respond quickly to issues.
- Reduces security risks: An in-house IT team helps with data security and minimizes exposure to cybersecurity risks by (potentially) keeping everything onsite rather than in the cloud. Maintaining network security means they can control who accesses your business’s systems and data.
What Are the Cons of an Internal IT Team?
Setting up a dedicated IT team that works in the same office also comes with some downsides:
- Potentially higher costs: SMEs often face higher costs to maintain an internal team. Businesses must pay salaries, training, equipment, and software for their internal IT teams.
- Limited expertise: In-team specialists aren’t necessarily experts in every aspect of IT and may not know much about new or specialized technologies.
- Staffing challenges: Finding staff with the necessary qualifications for your business’s needs can be challenging and may involve a lengthy training process.
- Limited scalability: Businesses that grow or change in nature will need to invest in recruiting and training new staff to avoid burning out existing staff members.
- Introverted perspective: IT teams with an overly internal perspective may struggle to keep up with the latest innovations in the industry. They may also lack the ability or willingness to challenge and improve their existing practices.
The Bottom Line: MSP or Internal IT Team?
| MSP | INTERNAL IT TEAM | |
| Business Needs | An MSP is often the best choice for small businesses, start-ups, or businesses with limited IT management needs. | Larger businesses or businesses with more resources might get more from an internal IT team. However, MSPs are scalable even for larger businesses and are worth considering. |
| Expertise | An MSP offers a high level of expertise that may surpass that of an internal IT team. | Internal teams are often enough to set up and run certain systems. This may change when your needs become more complex. |
| Team Size | Small teams that don’t include any IT professionals may prefer to outsource their IT needs. | If your IT needs can be comfortably handled by a small IT team, you might choose to maintain them without outsourcing any operations. |
| Security | MSPs can offer advanced security solutions that internal teams may not cover. | An internal team may be able to provide tailor-made security solutions that perfectly fit your business needs. |
| Budget | The price difference between the two options can vary significantly depending on many factors like the size of your team or the number of solutions your business requires. |
Choose a Solution that Supports Your Business Goals
Businesses of all shapes and sizes come to a point at which they need to decide whether to outsource their IT services to an MSP or create an in-house IT team. Both will help you resolve technical issues and get new employees set up with your systems. Ultimately, the choice will come down to factors like your budget, IT requirements, and short- and long-term business goals.
The right IT support will help you optimize your IT infrastructure and support every department in your business. Embracing a hybrid approach by combining an MSP with in-house IT may ultimately be the best solution for businesses with complex IT requirements.
