Hiring Internal IT Staff Vs Managed IT Contracts: Which is Best for My Business?

As your business grows, or as you invest in expensive technology solutions to assist your business growth, you may need significantly more help managing, maintaining, and supporting the technology within your organization.

This usually happens when you outgrow your current computer support provider or get too busy to research, learn, and take care of everything yourself. Either way, you must focus on your business and need someone else to handle your IT.

Sure, you can hire internal IT staff; in some cases, that’s a pretty good call. We will discuss some pros and cons and alternative options before you spend a ton of money you don’t need to.

Pros and Cons of Hiring Internal IT Staff

Traditionally, as a business grows, it might make sense to establish an internal IT department to handle technical support, maintain compliance, perform day-to-day maintenance, and work on IT-related projects that help meet business goals. 

The Pros of an Internal IT Department

In-House Knowledge and Familiarity
One of the main benefits of having internal IT staff is that they have in-house knowledge and familiarity with your business’ systems and processes. This can be beneficial when troubleshooting and addressing IT issues specific to your business.

Additionally, internal IT staff may better understand your business’ goals and objectives, which can help them align their IT strategies with your overall business strategy.

Immediate Availability
When you have internal IT staff, they are readily available to address any IT issues that may arise. This can be beneficial when immediate action is required, such as a system outage or a cybersecurity breach. This can feel especially novel compared to the traditional break/fix methods of older computer support companies from several years ago. Break/fix is where you only work with your IT provider when you call in because something is broken instead of having someone treat your network proactively. 

Control and Oversight
Having internal IT staff also gives you more control and oversight over your IT infrastructure. You can directly manage and monitor their work, ensuring that your IT needs are met according to your standards.

The Cons of an Internal IT Department

The Costs are High
Hiring new staff always has to be a strategic decision, especially for small businesses. When you hire full-time IT staff, you have to consider payroll, benefits, vacation time, potential overtime, taxes, insurance, and future raises and bonuses. 

You’ll also need to account for their equipment, software, and additional tools they may need to manage your IT effectively. 

Skillset Stagnation
Let’s say you made the call to hire one or two internal IT employees. They do a great job, and now you want to implement some new technology that is revolutionizing your industry, or you need to in order to meet some new compliance requirements. Your current IT staff isn’t likely to have much experience with these technologies if they’ve been with you for a few years. This means you will need to allow time for training and certifications or possibly seek outside specialists who can assist your existing team.

Gaps in Business IT
If you hire someone to manage your in-house IT, well, what exactly does that mean? Can you fully define this person’s day-to-day tasks? Again, what about compliance? What about testing your backups? What about budgeting server upgrades and preparing for OS end-of-life dates?

Yes, these are all things an internal IT person should be able to handle, but unless you are pulling in a consultant-type who has more insight on how to manage an entire company’s business IT, there are likely going to be gaps in the perceived responsibilities of your IT person. There may be things they just don’t know, aren’t aware of, or assume aren’t a part of their job description.

What is a Managed IT Provider?

Let’s look at the alternative option: establishing a contract with a managed IT provider (like Capstone Works).

Before diving into the benefits, let’s define what a managed IT provider is. A managed IT provider is a third-party company that offers IT services to businesses on a subscription basis. These services can include network monitoring, data backup and recovery, cybersecurity, and more. While not all managed IT providers are considered equal, generally, a good one has a well-rounded staff with a wide range of skill sets and a deep understanding of managing an organization’s IT from end to end.

Pros of Hiring a Managed IT Provider

Access to Expertise and Resources
Managed IT providers have a team of experts with a wide range of skills and experience. This means you have access to a team of professionals who can handle any IT issue. Additionally, managed IT providers have access to the latest technology and resources, which can be costly for a business to acquire independently.

By outsourcing your IT needs to a managed IT provider, you can tap into their expertise and resources without investing in expensive equipment or training for your internal IT staff.

Proactive Maintenance and Support
When you have an internal IT staff, they are often reactive, meaning they only address IT issues as they arise. This can result in downtime and lost productivity for your business. However, a managed IT provider offers proactive maintenance and support, which means they monitor your systems and address any potential issues before they become significant problems.

This proactive approach can save your business time and money in the long run, preventing costly downtime and disruptions to your operations.

Scalability
As your business grows, so do your IT needs. This can be a challenge for internal IT staff to keep up with, as they may not have the expertise or resources to handle the increased workload. However, a managed IT provider can easily scale their services to meet the growing needs of your business.

This means you don’t have to worry about hiring additional staff or investing in new technology as your business expands. Your managed IT provider will be able to handle the increased workload and ensure that your IT infrastructure can support your business’ growth.

Focus on Core Business Functions
When you outsource your IT needs to a managed IT provider, you free up your internal IT staff to focus on core business functions. This means they can work on projects that directly impact your business’ growth and success rather than spending their time on routine IT tasks.

Additionally, by outsourcing your IT needs, you can free up your time as a business owner or manager. You won’t have to worry about managing IT issues or staying updated with the latest technology trends. This allows you to focus on running and growing your business.

Cost Savings
One of the most significant benefits of hiring a managed IT provider is cost savings. When you hire an internal IT staff, you not only have to pay their salary but also provide benefits, training, and equipment. This can quickly add up and become a significant expense for your business.

On the other hand, a managed IT provider offers their services on a subscription basis, which means you only pay for the services you need. This can result in significant cost savings for your business, especially if you have a small or medium-sized business.

The Cons of Hiring a Managed IT Provider

Not All IT Companies Are Equal
You can go to a steakhouse and have one of the best porterhouses you’ve ever had, get excellent service, and leave feeling like a king. You can then go to another steakhouse down the road, order the porterhouse, and get a stiff, chewy hockey puck that can only be described as an insult to the cow. Working with just about any business will result in variable experiences.

With internal hires, you get the opportunity to interview potential employees. When picking out a managed IT provider, you usually get the chance to do the same thing while getting a good idea of how they will perform.

We’ve built a helpful guide for business owners to use when choosing a Texas-managed IT provider.

When deciding between hiring a managed IT provider or internal IT staff, there is no one-size-fits-all solution. It ultimately depends on the specific needs and goals of your business. However, for many businesses, the benefits of hiring a managed IT provider far outweigh the benefits of hiring internal IT staff.

By outsourcing your IT needs to a managed IT provider, you can save on costs, access expertise and resources, receive proactive maintenance and support, and focus on core business functions. These benefits can help your business operate more efficiently and effectively, ultimately leading to increased growth and success.

If you’re looking for a reliable and experienced managed IT service provider in central Texas, consider partnering with Capstone Works. Our team of experts can help you streamline your IT operations and support your business’ growth. Contact us today at (512) 343-8891 to learn more about our services and how we can help your business thrive.