If you own a business, you know just how frustrating it can be when your IT systems fail. It can lead to customers getting annoyed, employees losing their ability to be productive, and potential security breaches.
However, IT problems are more than just annoying. They can also cost you a pretty penny. Studies show that IT downtime costs businesses $1.55 million each year!
To help avoid this problem, you need professional IT services! However, the next thing you need to do is decide between in house vs outsourcing for your IT needs.
Not sure how to decide which is best for you? Stick with us as we go through some of the most important pros and cons.
Benefits and Drawbacks of Hiring In-House IT
First, we’ll start with the option of hiring your own in-house IT. Depending on the size of your business, this could be a single person or an entire team. Regardless, the benefits and drawbacks are essentially the same.
1. Customized Skill Sets
When you hire your own IT department, you can have the confidence of knowing that the person you’re working with has the exact skillsets you need. While an outsourced IT company may tell you they’re well-versed in everything, this isn’t always the case.
This is particularly important if your company uses technology that’s not widely used or has other very specific IT needs.
2. Greater Control
When you’re working with an employee rather than a third-party provider, you have more control over your data and other sensitive information. Working with a third party means you don’t just have to worry about your own possible downtime and security breaches, but potential problems that the other company could have as well.
3. Prompt Resolution
When an IT problem arises, you need it fixed right away. With an in-house team at your fingertips, you won’t have to waste time calling around to find someone to help you or finding out that they can’t get to it until next Tuesday. The faster you can get your problem resolved, the less it will cost you in the long run.
Your in-house IT department will also have an intimate knowledge of your current structure and programs, making it faster and easier to troubleshoot problems.
4. Training Costs
One of the biggest downsides to having your own in-house IT is that you’ll have to shoulder the cost of getting them up to speed on your systems and any other technical knowledge they need to do the job well. This will cost you time, employee hours, and the money you’ll have to pay for the training resources.
Since the world of IT is always changing, you’ll also have to ensure that your IT employees receive plenty of continuing education and are willing to educate themselves to stay on top of the latest trends and threats.
5. Ongoing Payroll
Another drawback is that you’ll need to pay your in-house IT employees all year long, not just when you have an IT problem. Depending on the size of your company and how heavily you rely on IT, you may find that an in-house solution simply costs far too much for the benefits you’re receiving.
Pros and Cons of Outsourced IT
Outsourced (or managed) IT brings an entirely different set of pros and cons. You’ll want to consider them carefully before making your final decision.
1. Specialized Services
If you need a very specialized IT service that isn’t likely to be ongoing, then it makes far more sense to outsource rather than hire staff. This way, you can get your one-time need taken care of without worrying about the costs associated with keeping employees on the books.
2. A Wider Variety of Services
On the other side of the coin, an outsourced IT company is also likely to have a large IT staff with a wide variety of skillsets. This makes it easy to get the exact service you need when you need it. If you opt for in-house IT and your staff doesn’t know how to do something, you’re left looking for answers with no simple solution in sight.
3. Compliance and Liability
According to charlotteitsolutions.com, compliance and liability issues are also important reasons to consider using an outsourced IT company. This is particularly important in industries where regulations like HIPAA apply, but all companies need to protect themselves from a potential data breach.
When you outsource to a third-party provider, you are transferring some of that liability. Having a dedicated third-party team also increases the chances that potential weaknesses will be found and addressed before they become a major problem.
4. Higher Hourly Rate
A managed IT service will often end up charging a significantly higher hourly rate than what you’ll pay for an on-staff employee, even when you add in things like taxes and benefits. When considering how important this is to your company, you’ll have to think about how often you expect to use the service.
If you have consistent IT needs, then taking care of it in-house might be your less expensive option. Otherwise, a few hours at a higher rate is still a better deal.
In House vs Outsourcing: It’s Time to Make a Decision!
Now that you’re privy to all the facts in the great “in house vs outsourcing” debate, you have what you need to make the right choice for your business. Perhaps the most important piece of advice at this point is not to delay. The last thing you want to do is wait until you have a serious problem to realize you should have hired someone months ago.
While you’re thinking about your decision, take some time to browse a few more of our blog articles. They’re packed with valuable information that’s sure to help you set yourself up for success.