Outsourcing Vs Insourcing IT: Which is Right for Your Business
When it comes to sourcing IT support for your organization, there are two options. The first is to keep your IT staff in-house, the second is to outsource your IT needs to a managed services provider (MSP).
As business technology use continues to grow, nearly all companies are in need of some IT support. Businesses should carefully review the pros and cons of both options to determine the best option for their unique needs.
Insourcing
Insourced IT refers to having your own dedicated IT employees. Depending on the size of the organization, this can be one person or entire team of IT support and security staff.
Pros
More employee control
Having your own dedicated IT employees allows you to monitor and manage employees more closely than a third party’s team. This creates more uniform techniques and messaging.
Growth & Training
An in-house IT department provides opportunities for more ingratiation into your unique culture and company nuances. It also allows for training and long-term growth opportunities that are unique to your organization’s needs.
Ease of Communication
Full-time, on-site IT employees provide better opportunities for face-to-face conversation and clarity. There’s less back and forth that has to happen to fix something or get a project started.
Cons
Expensive
Paying one or more full-time employees can get expensive very quickly. In addition, there is the cost of talent acquisition and retention. You’ll also bear the expense of any necessary systems or software, rather than it being included in your MSP contract.
Lack of Top Talent
Attracting high quality IT employees can be difficult, especially if you are a small or new business. If you are unable to afford competitive salaries or benefits, you may end up hiring an under qualified employee just to fill a position.
Employee Capabilities & Turnover
When you are hiring long-term employees, you may be limiting the growth of your IT capabilities. Expecting employees to complete new projects outside of their comfort zone during times of growth can lead to employee stress - and ultimately, high turnover.
Outsourcing
When you outsource your IT, you utilize external service providers to perform some or all of your organization's IT workload. This can be done on a project basis or by engaging a full-scale managed services provider (MSP).
Pros
Cost Savings
Outsourcing can significantly reduce IT costs without the expenses of procurement, installation, or management of your own systems and team. With an outsourced provider, all of your technology needs can be taken care of for one predictable price.
Reduced Risk
Outsourcing can help you to avoid the risks of technology downtime or cybersecurity incidents. A good IT provider knows how critical your success is to their own and goes the extra mile to backup their own systems and networks, providing an extra level of security. Outsourced IT provides you and your staff the peace of mind of knowing your technology is taken care of.
Focused Knowledge
IT providers live and breathe technology. They also employ the best people in the business. This ensures that you are getting the proper knowledge and support at all times.
Cons
Hidden Fees
Outsourcing can save you money, but it’s important to partner with a provider who ensures complete transparency in regards to cost. Many MSP contracts include a long list of exclusions and “hidden fee”. At Kotman Technology, our list of exclusions is so short we can count them on one hand. We make sure there are no surprises come invoicing.
Lack of Control
Giving up your control over an important piece of your business can be intimidating and risky. An outsourced provider will be responsible for all compliance and controls around IT service management and methodology. Partnering with an established, transparent provider can go a long way to relieving this anxiety.
Security
It seems like every day you hear about another data breach. Outsourcing your IT grants access to company trade secrets and confidential information to a third provider. It’s critical to partner with a provider who makes security a priority for both your network, and their own.
Not sure which approach is best for you? We can help.
As you evaluate which approach is best for your business, it may be helpful to get a second opinion. At Kotman Technology, our top priority is making sure you are successful - not making a sale. We’d be happy to weigh the pros and cons with you and address any questions or concerns you may have about either approach.
Kotman Technology has been delivering comprehensive technology solutions to clients in California and Michigan for nearly two decades. We pride ourselves on being the last technology partner you'll ever need. Contact us today to experience the Kotman Difference.