In-House vs. Outsourced IT: What Is Best for Your Business?

There are no “normal” information technology (IT) requirements for a company in today’s market. Some businesses require extensive information security and attention to compliance requirements. Another may be looking for public cloud solutions. Maybe your business needs all these tools and more, and you aren’t sure where to go with IT services. According to CIO Magazine, an average of 4 to 6 percent of revenue is spent on IT.

With a cost that adds up to this much revenue, having a competent and trustworthy IT team is essential. Once the need for IT specialists is apparent, the question is one of insourcing vs. outsourcing and whether to hire an in-house team or an outsourced team on an as-needed basis.

In-House IT

Pro: Trusted, Immediate Service

Having your own hired, in-house IT team could have huge advantages. Having vetted your employees personally, you know that you have hired trustworthy and hardworking individuals. There will be no question that they are up to the task at hand when you assign them to fix an issue or start a brand-new project. Continuity will be carried throughout the work they do, as they are familiar with your business and the inner workings of specific IT needs. There will also be little to no wait time for emergent issues, like website crashes or breeches.

Con: Competitive Salary Needs

While having a highly trained and capable team at your fingertips is an invaluable tool, it comes at a high financial cost. Retaining this type of employee will require that a competitive salary is maintained. They offer a highly sought-after service and may need to be convinced to stay with a competitive salary.

Outsourced IT

Pro: Hire as Needed

One of the biggest pros of outsourcing is the ability to hire someone for a specific issue or project on an as-needed basis. It could prove to be cost-effective to only pay someone for work that needs to be done rather than have them on staff at all times waiting for a project to arise.

Con: Freelance Is Rarely the Right Model

While hiring freelance could save you money if it is a rare occurrence, your organization may need to find the right managed services provider (MSP) to fit your needs. If you know that there will be quite a few projects and a steady amount of work, it may be smarter to fully outsource your IT department instead of purchasing services a la carte.

Takeaway

There is no right or wrong answer for everyone. Considering the needs of your business is your best bet to winning the war for tech talent and choosing between in house and outsourced IT services.

Sources:
http://searchcio.techtarget.com/magazineContent/How-Company-Size-Relates-to-IT-Spending

In-house vs. outsourced IT: what makes the most business sense?