It’s challenging these days to run a business without a strong information technology system in place. From all the hardware and software you use to the network everything runs on, there’s a lot to manage.
If you want to optimize and scale your operation, you know you need to focus on what really counts. That means spending your time managing your operation and getting and serving customers. Not wrangling with your technology day in and day out.
So, the question is: Who do you hire to manage your IT?
Do you hire an in-house employee or do you outsource your IT management to a third party? In this post, we’ll break down the pros and cons of each option.
TL;DR: Outsourced IT makes the most sense for SMBs that are budget-conscious, and have major plans for growth in the near future.
In-house IT Management: Pros & Cons
If you’re thinking about hiring a full-time in-house IT manager, here’s what you need to know:
The Pros
- You have a fully devoted employee (or team) to focus on your IT and nothing else.
- Your goals are their goals.
- They know your network and setup better than anybody else, which can reduce lag time when issues arise.
- If you work from an office, they can troubleshoot physical hardware and network issues in person.
- An in-house IT manager allows you to keep all your data within your company, which can reduce risk and anxiety with the alternative.
The Cons
- This is the priciest option as you’ll have to pay for a full-time salary and benefits.
- If you lose the employee, you’ll have to endure the cost of recruiting, interviewing, onboarding, and training someone new.
- Scaling your IT team will be exponentially more expensive, unless you supplement with third-party support.
- When they use PTO or vacation days, someone will need to cover for them as IT can’t be put on hold.
- Your operation will need to be relatively sizable and complex to have enough work for a full-time IT person.
- A single employee might not be well-versed in all aspects of IT, so you still might need to outsource.
- Unless you’re paying for additional training, your IT manager might not seek out opportunities to learn and adapt as IT evolves.
Outsourced IT Management: Pros & Cons
If you’re considering outsourcing to an IT services company, here’s what you need to know:
The Pros
- They take IT off of your hands so you can focus on what you’re good at.
- Costs are relatively lower. You pay by service, not by employee.
- There’s flexibility in how you pay. You can pay for services as needed or you can pay a flat monthly fee for managed IT services.
- You can delegate as few or as many IT tasks as you want. You can opt into additional services at any time, too.
- IT services companies, in general, have a broad range of skills and specialties to cover whatever you need.
- Because they work with so many businesses and industries, they tend to be more versatile and adaptable.
- You can scale your technology and operation more quickly as you have a whole team at your disposal vs. one employee.
The Cons
- Your goals, processes, and communication style won’t necessarily be mesh, which can make collaboration sometimes challenging.
- While they may be able to visit your office, you won’t have a dedicated on-site representative.
- Their availability may be limited as they have other clients and competing priorities.
- They’re not employed by you and can terminate your contract at any time.
- They’ll need remote access to your network and data, which can increase risk (depending on who you hire).
Should You Outsource IT Management?
For some small- to medium-sized businesses, outsourcing IT management is the clear choice. For others, in-house is the way to go. Still for others, a hybrid option is best.
Here are some questions to think about before making your final decision:
- Is your business profitable enough to pay for an extra employee?
- Can a single IT employee serve everyone’s needs at your company?
- Will you have enough work for a new hire or does it make more sense to bring someone on part-time or on-call?
- Is your industry heavily regulated (e.g. HIPAA, SOC 2, PCI) and in need of advanced security protocols?
- Besides hardware and network management, are there other aspects of IT you need help with (e.g. backups, web design, business continuity)?
When it comes to your business’s technology and data, it’s only natural to feel guarded. At the same time, with how pivotal a role technology plays in the continuity and success of your business, you know you need an expert you can entrust it to.
The question is, who is the right person for that job?
In our 20+ years of experience in IT services, we find that SMBs benefit the most from either outsourcing IT management or taking a hybrid approach. Both options allow you to delegate your IT as needed and to scale the size and costs of it alongside your business needs.
If you’re leaning towards outsourcing your IT management, fill out this form and request a free custom quote. We’d love to connect and discuss how Magnum Computer Services can help!
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