Pros and Cons of Managed Services Vs. Pros and Cons of Internal IT Teams
Managed Services Providers and Internal IT teams are common ways to manage IT infrastructure, support, and strategy. Still, they each have unique pros and cons. Here are some of the advantages and disadvantages of Managed Services Providers versus internal IT teams:
Pros of Managed Services Providers:
Scalability
Managed Services Providers (MSPs) can scale the services to meet clients’ changing needs; as your organization expands, IT needs will evolve, and a Managed Services Provider can adapt quickly.
Cost-effective
Managed Services Providers can be a cost-effective way to manage IT infrastructure, support, strategy, and security, as organizations only pay for the services they need. This approach can help organizations save money on IT.
Expertise
Managed Services Providers (MSPs) typically have many experienced, skilled technicians who can provide a range of IT services, including IT support services, strategic consulting, cybersecurity, data backup and recovery, and cloud services.
Increased Security
Managed Services Providers typically provide robust security solutions, including network security, endpoint security, email security, etc., which help protect organizations from cyber threats.
Improved Productivity
Organizations that outsource IT management to a Managed Services Provider free internal resources up so they can focus on other important initiatives and enhance productivity.
Proactive Approach
Managed Services Providers take a proactive approach to managing IT infrastructure, seeking to identify and address potential issues before they become major problems, saving organizations time and money.
Vendor Management
Managed Services Providers can help manage your technology vendor relationships, addressing procurement, renewals, maintenance, and support issues, saving the organization significant time and effort.
24/7 Support
Managed Services Providers usually offer some level of 24/7 monitoring and support, which can help keep your technology systems running effectively to minimize downtime and business interruption.
Reporting and Communication
Managed Services Providers typically include routine reporting and maintain good communication with clients, which helps provide organizations clarity of the IT infrastructure’s health and IT management’s performance and effectiveness.
Cons of Managed Services Providers:
Limited Knowledge of Internal Processes
Managed Services Providers may lack familiarity with an organization’s internal processes, making it more challenging to provide customized solutions to address 100% of clients’ needs.
Limited Customization
Managed Services Providers usually offer standardized packages of services, which may not be customizable to meet an organization’s specific needs.
Lack of Control
Outsourcing IT services entails giving up some control over certain parts of your IT infrastructure, which may not be ideal for organizations that prefer more control over their technology.
Dependence On the Vendor
Organizations relying heavily on Managed Services Providers may become dependent on the vendor for all their IT support, strategy, and security needs, making it harder to change vendors or shift IT services in-house.
Cost
Managed Services Providers may cost more than staffing internal IT personnel, especially for midsized or large organizations.
Communication Gap
The communication challenges between the client and the Managed services providers (MSPs) can create delays or miscommunication, leading to service issues.
Limited Liability
MSPs have limited liability cases of data loss and security incidents.
Pros of Internal IT Teams
Knowledge of Internal Processes
An internal IT staff is often more familiar with an organization’s internal processes and use of applications, which may help address specific IT issues more effectively.
Customization
Internal IT can create solutions to meet the organization’s specific needs and adapt support processes to particular processes within the organization.
Control
An internal IT staff provides greater control over your technology systems and IT management. This may be important for organizations with distinct needs or compliance requirements.
Fast Response
Internal IT personnel may be able to respond more rapidly to issues, especially for VIP staff, minimizing interruption and improving productivity.
Alignment With the Organization’s Goals
Internal IT personnel are more likely to align with the organization’s objectives, enabling approaches that benefit its long-term vision.
Accountability
Internal IT staff may be easier to hold accountable for their performance. Internal IT teams have direct accountability to the organization they work for, as they report to management or C-level executives.
Flexibility
Internal IT personnel may be more agile in adjusting to organizational changes.
Cons of Internal IT Teams:
Cost
Staffing IT personnel may be more costly than using a Managed Services Provider, as organizations must pay salaries, benefits, and other overhead costs, as well as provide training and development opportunities.
Expertise Limitations
Internal IT staff may not possess the same expertise as Managed Services Providers staff collectively can provide. This may cause issues for organizations that need specialized knowledge to effectively manage their technology.
Limited Resources
Internal IT teams usually lack the resources, IT management tools, and processes that a Managed Services Provider leverages, which makes it challenging for internal IT staff to provide the same level of service and outcomes.
Limited Scalability
Internal IT teams may need help to scale services to meet the organization’s changing needs, creating a challenge for organizations that experience rapid growth or frequent changes in their technology stack.
Vendor Management Challenges
Internal IT personnel may lack the same vendor management capabilities or experience as a Managed Services Provider, making it hard to manage all the organizations’ IT vendors.
Limited Support Hours
Internal IT staff cannot provide 24/7 support and monitoring cost-effectively at a small or midsized organization, which can lead to interruption and support challenges.
Lacking Reporting and Communication
Internal IT teams rarely provide routine, objective reporting and may also suffer in terms of delivering effective communication, making it challenging for organizations to make effective technology decisions.
Ready to Leverage an MSP?
Ultimately, the decision to use Managed Services Provider or staff internal IT personnel will depend on the specific needs of the organization. Factors such as budget, necessary expertise, ability to scale, , customization and control requirements should all be considered. It’s crucial to weigh the pros and cons of each of these options and choose the best solution for your organization. Also, do not limit yourself exclusively to either option, as many organizations determine that a hybrid approach, leveraging a Managed Services Provider and internal IT staff, may be the most appropriate solution for their organization.
If you are ready to take the next step with a Managed Services Provider, Framework IT is the way to go. Framework understands the value that technology adds to business and how we can bring your organization to the next level. Contact us to speak with an expert today.
