Networking Support

Should You Manage Your Office Network In-House or Outsource It?

February 19, 2024

Introduction

As a business owner, one of the most important decisions you need to make regarding your office technology is how to manage your computer network. Should you handle all the IT tasks in-house or outsource network management to an IT services firm? There are pros and cons to both options that need careful evaluation. In this comprehensive guide, I will examine the key factors to consider when deciding between in-house and outsourced IT network management.

Cost Comparison of In-House vs Outsourced IT Management

One of the biggest considerations is the cost difference between keeping IT in-house versus outsourcing. There are both obvious and hidden costs to factor for each option.

In-House IT Costs

IT staff salaries – You need to pay the salaries and benefits of dedicated IT personnel to handle network administration, technical support, maintenance, upgrades and troubleshooting. This is usually the biggest recurring expense.
Infrastructure costs – You must purchase all the necessary hardware like servers, routers, switches, firewalls, backup systems etc. and continually upgrade equipment.
Software and licensing costs – Ongoing costs for critical software like server operating systems, security suites, databases, line-of-business apps. Licensing fees can be expensive.
Training/certification costs – IT skills need continuous upgrading. You must pay for training materials, courses, conferences, certifications.
Consulting fees – In-house staff may need help from outside consultants for complex or new projects.

Outsourced IT Management Costs

Monthly service fees – The managed service provider charges a flat monthly fee that covers network monitoring, administration, help desk, maintenance, upgrades and uptime guarantees.
Hardware costs – Reputable IT firms provide current hardware as part of the service, spreading out the cost.
Project fees – Large upgrade initiatives like migrations may cost extra but are infrequent.

Clearly, outsourcing gives you predictable IT expenses without huge capital investments and ongoing licensing/training costs. But in-house can get cheaper at scale with full-time IT staff and amortized infrastructure costs.

Quality and Reliability of IT Services

The level of quality and reliability you get from either in-house or outsourced IT has a huge impact on business operations and productivity.

In-House IT Quality

Dedicated staff – Employees focused only on your company’s network with knowledge of systems and users.
Internal support – Users get help from someone in the same office which can be more collaborative.
Full control – Manage IT priorities based on intimate knowledge of business needs.
Security – Keep all systems and data in-house without third-party access.

But there are some downsides:

Small IT teams have limited skillsets and capacities during crises.
Staff turnover can result in loss of knowledge and service continuity.
Companies lack economies of scale in IT management and best practices.

Outsourced IT Quality

Breadth of expertise – Large IT firms have diverse skillsets to handle a wide range of technologies and issues.
Proven best practices – Mature processes developed across thousands of clients ensure high quality of service.
Latest security – Keep infrastructure patched and secured against latest cyberthreats.
Scalability – Rapidly adjust resources to match your needs and growth.
24/7 monitoring – Continuous surveillance of networks minimizes outages.
SLA guarantees – Guaranteed uptime and response times for incidents and support requests.

But some drawbacks include:

Outside vendors take time to grasp your unique systems and needs.
Difficult to get attention for smaller issues.
Lose a bit of control over priorities and roadmaps.

Convenience and Overhead of Administration

There is a significant difference in effort required to manage IT in-house versus outsourced models.

In-House IT Overhead

Recruiting and retaining skilled IT staff is challenging.
Must train employees on your specific environment and procedures.
Managing IT personnel, projects and planning require administrative bandwidth.
Hard to take vacations and time-off when you are responsible for IT availability.
Upgrades and fixes often need to happen after hours and on weekends.

Outsourced IT Convenience

A qualified partner handles all infrastructure so you can focus on core business.
Enjoy a predictable expense rather than fluctuating labor and licensing costs.
IT provider handles staffing, expertise and best practices.
Provides 24/7 monitoring and support coverage.
Manages upgrades and maintenance during off-hours.

Clearly, outsourcing IT management frees up a lot of time and overhead for business owners and executives. But some prefer the control and customizability of in-house IT staff.

Flexibility for Growth and Changing Needs

As your business evolves, so do your technology and support requirements. Both options provide distinct advantages for adjusting IT to your changing needs.

In-House IT Flexibility

Tailor systems and software specifically to your workflows and preferences.
Choose your own hardware platforms and configurations.
Set your own upgrade roadmaps and schedules.
Build institutional knowledge exactly how you operate.

But also consider limitations:

Expanding IT staff and infrastructure requires significant time and investment.
Finding right new skills and expertise you need can be difficult.

Outsourced IT Flexibility

Scalable monthly fees let you ramp IT up or down swiftly.
Take advantage of latest technologies without large capital layouts.
Access new capabilities and skillsets on-demand.
Avoid costs of having to retrain internal teams on new systems.
Leverage economies of scale from IT provider.

The broad resources and skillsets of a mature IT services firm provides more agility. But in-house staff can be easier to customize to your changing needs.

Key Takeaways on In-House vs Outsourced IT Management

Deciding between keeping your technology in-house or outsourcing IT management carries major implications for costs, quality, overhead and strategic agility. Consider the key takeaways:

For small companies, outsourcing provides better economics and expertise.
With in-house IT, take a close look at total cost of staff, hardware, software, licensing, training etc.
Compare service levels and responsiveness from internal staff versus proven outsourced providers.
Examine administrative bandwidth required to properly manage an in-house IT team.
Evaluate flexibility to scale up and adopt new technologies offered by both options.

Carefully weighing these factors will lead you towards the right choice for your business – whether that is developing in-house IT expertise or leveraging an outsourced partner. Revisit the decision periodically as your needs evolve. With the right IT management model powering your technology, you can focus on driving business success.