Outsourced IT Support Vs In-House: Which Suits Better For Your Business?

Swami Nathan Thu, 05/21/2020 - 12:49

Many of us wondered Whether Outsourced IT Support or In-house Support Which is beneficial to the organisation? Keep on reading and we’ll show you the answer.

Small businesses are increasingly relying on digital technology to offer their customers superior products and services. Whether you are a small, medium or large enterprise, digital transformation is inevitable. But as the emerging technologies have all the inherent glitches, performance problems, and other hiccups in all IT systems. A strong IT support team would be able to efficiently fix these problems without major harm to the business. Nonetheless, building a fully functioning, efficient, and talented IT support team needs a tremendous amount of money, energy, and effort.

It is clear that most organisations will need some form of dedicated IT unit, but the trouble comes in determining, whether to create your own internal IT team or opt for outsourced IT assistance.

Reasons for Outsourced IT Support

Outsourcing IT is a perfect option for start-ups or growing companies that needs fast and inexpensive access to additional capital. A partnership with a strong IT outsourcing company would be a valuable strategic tool if your business needs access to specialist expertise, new insights or help. In comparison, it costs a fraction of the price that it will cost to hire someone new, which costs up to £26,000 on average. Outsourcing costs are dependent on the quality of service you require and allow you the flexibility to scale up or down as per your company needs, and you only pay for what you need.

The UK economy has shown that outsourcing can accelerate production, resulting in overall savings and benefits. Research shows that outsourced IT will also help cut other expenditures such as advertising, and general and administrative costs, which are sometimes 4 to 5 times IT costs. This narrow focus hides many potential cost benefits when managers think of outsourced IT as a mere substitute for internal IT investments.

In-house IT Support

Creating an internal IT department has its advantages. You can create a tailor-made support team with the right staff, with the right skills and qualifications, with in-depth and expert knowledge of the unique setup and systems of your company. If on-site based, they are likely to be available immediately and will be able to solve problems fairly quickly. Many companies find this useful for future emergencies, such as security breaches.

Nonetheless, setting up an internal IT department requires time, commitment and sometimes substantial capital outlay. Businesses should consider what skills they would need to develop a successful team in the future and that can be hard to foresee – even for the most forward-thinking business leader.

This is not all about the one-off recruiting charges. The average salary is around £26,000 for a service desk analyst. You may be looking at £45,000 or more for an IT Manager. You will also need to remember continuing training expenses – because you would want to keep the staff up-to-date.

Relying on just one or two people to manage your entire IT environment is usually a mistake. Even the IT engineer with the most experience will have gaps in knowledge. In terms of illness and holiday insurance, depending on a very small team would possibly cause your problems. What will happen if one member of your two-person team is on a holiday and the other is sick? Who will be responsible for dealing with matters outside normal working hours? You can’t expect to be 24x7x365 on call with a single person.

ProsCons

Controlled processes

Great expenses

Resource On-Site

Recruiting a good IT staff

Exceptional understanding of your company network

Holidays and sickness

Talent development

Inconsistent standard operating procedure

Outsourced IT Support

One of the key benefits of an outsourced IT is that, it provides financial savings. Generally, outsourced IT support is more cost-effective than building an in-house team, so a fixed monthly or per-user fee can be expected. The exact price generally depends on the number of users and the amount of service, but outsourcing appears to be the most cost-effective path once you do the calculations.

With outsourced IT, you have 24x7x365 coverage, and there’s no need to think about stuff like illness and holiday cover. Most IT support providers will have an hours-lines dedicated team, so that you can access support whenever you need it. Many problems may now be handled remotely, so you may not always need to have a full-time staff on site.

You will also have access to a larger range of know-how on-demand. A quality IT outsourcing firm would have employees with a range of expertise and skills, and it will always be able to find someone to support, whether it is to assist with a fast fix or for a longer term project. If your internal IT team lacks the expertise, you might need to hire a freelance contractor. Although they may only be a short-term hire, there are additional costs, as contractors also order higher day rates.

Critics will argue that a managed third party will never be as effective as an employee. Other considerations are also data protection, data ownership and the recovery of disasters. However, with the right IT outsourcing company the rest can be avoided altogether. There should be agreements governing the quality of service that you are receiving. Service Level Agreements will specify how to manage problems, response times, and penalties unless they are met. Customer retention rate and reviews will give you a rough indication of price, but don’t make a single factor judgement – e.g. “Who’s the cheapest?”

ProsCons

Cost effective

Finding the right vendor

24/7 Support

Problems with communications

Focus on core business functions

Loss of control

Service that earns your business

Experienced professionals

In-house or Outsourced IT Support?

It can be difficult to determine which strategy is best for your company, but when it comes to IT support, it is clear that there isn’t one fits all solution.

Neither strategy can be 100% correct for certain businesses. This causes others to opt for a hybrid model incorporating the outsourcing components with an internal team. The most important thing is, to find the right partner to outsource IT who understands your company and needs.

Can't decide?

Has your organisation still not decided and considering outsourced IT support? Simply fill in the Contact form, or call us.

Many of us have wondered whether Outsourced IT support is the best choice. How do we know if we are ready to do it? Keep reading, and we show the answer.

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