Navigating Managed IT Services vs. In-House IT

February 18, 2024
20 min read
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Nearly every business relies on technology for their daily operations. From communication and collaboration tools to data storage and security, technology plays a crucial role in the success of a company. With this dependence on technology comes the need for IT support.

When it comes to addressing your IT needs, businesses typically have two primary options: engaging managed IT services or establishing an in-house IT team. Another option is adopting a hybrid model that combines aspects of both. Each alternative comes with its set of advantages, making it crucial to discern the distinctions before arriving at a decision tailored to your business.

Let's break down the different considerations so you can make an informed decision on what IT management model best suits your business needs.

Understanding Managed IT Services

Managed IT Services, commonly referred to as MSP, is a model where a third-party provider takes on the responsibility of your IT systems and infrastructure management. At Everound, this is how we work with most of our customers. It offers a proactive, rather than reactive, approach to technology support. A managed service provider assumes 24/7 monitoring, management, and problem resolution for businesses, allowing internal staff to focus on strategic, value-adding activities.

MSPs primarily manage IT infrastructure and end-user systems. They take a collaborative approach, offering support to an in-house IT team or operating as the comprehensive IT department.

Suite of Services

MSPs cover a breadth of IT services, such as network monitoring, security solutions, cloud management, data backup and recovery, and help desk services. They offer a diverse array of expertise, often hosting a team experienced in different IT areas.

This allows businesses to access a wide range of support and solutions without having to hire multiple specialists.

Key Benefits of an MSP

There are many benefits of working with a managed IT services provider. Some are related to cost and others are related to expertise. The key benefits to a business working with an MSP are:

  • Cost Predictability: With a flat-rate monthly fee, MSPs can often provide more predictable spending than managing it in-house. This can be especially beneficial for small businesses on a tight budget.
  • 24/7 Support: MSPs are there when you need them, ready to address any IT issue at any time. This means that businesses can have peace of mind knowing that their critical systems are being monitored and supported around the clock.
  • Access to Expertise: By partnering with MSPs, you tap into a specialized pool of IT professionals. They have the knowledge and experience to handle a wide range of technical issues, from software updates to cybersecurity threats. This can save businesses time and money by avoiding the need to hire and train in-house IT staff.
  • Scalability: Adjust your services as your business grows or IT needs change, without the HR headache. MSPs offer flexible services and pricing options, allowing businesses to scale up or down as needed without the costs and hassle of recruiting new employees.
  • Proactive Maintenance: MSPs use advanced monitoring tools and processes to identify potential issues before they become major problems. This proactive approach helps prevent downtime, data loss, and other costly disruptions that can severely impact small businesses.
  • Cost Savings: Outsourcing IT services to an MSP can be more cost-effective than managing an in-house IT team. Businesses can save on recruitment and training costs, as well as on expensive hardware and software purchases. With a fixed monthly fee for managed services, businesses also have predictable IT expenses, making budgeting easier.
  • Strategic Focus: By offloading the day-to-day management of IT tasks to an MSP, businesses can free up valuable time and resources to focus on core business objectives. This allows for a more strategic approach to IT planning and decision-making, leading to better overall business outcomes.


The In-House IT Proposition

Having an in-house IT team means having a dedicated group of professionals solely focused on your business needs. They offer a level of intimacy with your business operations and functions, as they are on-site every day. Gathering an in-house IT team involves recruitment, where businesses can search for talent aligned with their specific needs. It also necessitates an ongoing commitment to professional development.

In-House Advantages

For some businesses, an in-house IT team makes sense. This is often the case with large, national corporations. Some advantages of an in-house IT team are:

  • Culture Fit: Your in-house team can be deeply integrated into your business culture and objectives. This can lead to better alignment and understanding of the business goals, resulting in more effective solutions.
  • Control: With an in-house team, you have complete control over the direction and management of your IT projects. You can make decisions quickly and implement changes as needed without needing to go through a third-party provider.
  • Immediate Availability: With staff on-site, you have instant IT support ready to resolve issues. This may minimize downtime in some cases and keep business operations running smoothly.


Considerations When Choosing Your IT Model

Opting between an MSP model and an in-house IT is an important decision for a business owner. There are several things to consider including cost, scalability, expertise and skill sets, and flexibility and adaptability.

Cost and ROI Comparison

The decision between in-house IT and MSP hinges significantly on the delicate balance between costs and benefits. Conducting a thorough examination of the return on investment is imperative to grasp the economic trade-offs inherent in both models.

Opting for an in-house IT department involves substantial initial expenditures, encompassing the recruitment of specialized staff and the acquisition of equipment and software. Further ongoing costs may include training, maintenance, and upgrades. In contrast, MSPs typically levy a flat monthly fee for their services, presenting a potentially more cost-effective solution in the short term.

The advantages offered by MSPs extend beyond mere cost considerations. They provide intangible benefits like heightened security and minimal downtime, complemented by tangible cost savings. For instance, MSPs can furnish a team of highly skilled professionals at a fraction of the cost associated with hiring full-time employees. Moreover, their specialization in IT services affords them access to cutting-edge technology, translating into greater expertise and efficiency.

On the other side of the spectrum, in-house departments boast strengths in team familiarity with your operation, potentially yielding long-term financial gains through staff retention and accumulated knowledge capital.

In the crucial decision-making process between an MSP and an in-house IT department, the aspect of long-term ROI must not be overlooked. MSPs offer a degree of predictability in costs and service scalability, contributing to long-term planning security. In contrast, the long-term ROI with an in-house team may fluctuate more, contingent on organizational growth and the associated costs of staff development or replacement.


Scalability is a pivotal factor in achieving business success, and your IT management model should accommodate it. Managed Service Providers excel in this regard by offering on-demand services that dynamically scale in alignment with your business's evolving needs without requiring lead time.

Conversely, the process of expanding an in-house team or scaling up IT infrastructure can be both time-consuming and financially burdensome. By opting for an MSP, your business gains the invaluable advantage of promptly adding or removing services in response to growth or changes. This not only enhances adaptability but also fosters a more agile and responsive approach to IT management, aligning your technological resources with the dynamic needs of your business.

Expertise and Timeliness

MSPs swiftly implement solutions and updates via their specialized teams. They have the expertise and resources to stay up-to-date with the constantly evolving IT landscape, ensuring your business is always using the most efficient and effective tools. Additionally, MSPs provide timely support and troubleshooting for any technical issues, minimizing downtime and preventing potential disruptions to your operations.

In-house teams may be more attuned to the immediate needs of your business and can potentially offer more customized services. However, they may not have the same level of expertise or resources as an MSP, leading to longer response times and potential delays in implementing solutions.

Flexibility and Adaptability

Every business situation is unique, and the chosen IT management model must flex to accommodate this. Adapting to emerging technologies and sudden market shifts is equally an assessment of IT strategy as it is of the IT personnel.

Managed IT services providers have the edge in readiness. MSPs by design are attuned to IT developments and are quicker to adopt change and can help strategize and implement long-term technology plans with efficiency.

Internal IT departments need to actively manage their readiness for technological shifts. They must be aware of emerging technologies and trends, and have the resources to quickly implement them.

The Hybrid Approach

For many small businesses, a blend of managed and internal IT services may offer the best of both worlds. It requires a strategic and thoughtful fusion to ensure a cohesive and effective IT operation. By partnering with a managed service provider, businesses can tap into their expertise and resources while still maintaining some level of control over their IT operations. This hybrid approach allows for flexibility and agility in adopting new technologies while also keeping costs in check.

One major benefit of the hybrid approach is the ability to leverage the strengths of both internal and external IT teams. Internal IT departments can focus on day-to-day operations and managing more critical systems, while the managed service provider takes on tasks such as network security, data backup, and disaster recovery planning. This division of labor helps to reduce stress on internal teams while allowing them to prioritize projects that align with business goals.

Another advantage of this blended model is cost savings. Managed service providers typically offer customizable plans that allow businesses to only pay for the services they need, rather than investing in expensive equipment and software that may not be fully utilized. This also eliminates the need for constant upgrades and maintenance costs, further reducing IT expenses.

In addition to potential cost savings, hybrid IT also provides scalability. As businesses grow and their technology needs change, they have the flexibility to adjust their service plans accordingly. This means that companies can easily scale up or down as needed without being locked into long-term contracts or purchasing unnecessary hardware.

Moreover, a hybrid approach allows for greater agility when it comes to adopting new technologies. With an internal IT team focused on day-to-day operations, a managed service provider can stay up-to-date on emerging technologies and help businesses integrate them seamlessly into their existing systems.

Everound: Your Technology Partner

The debate between Managed IT Services and in-house IT is more than an operational consideration; it's a strategic business decision. Whether prioritizing cost-effectiveness, customization, or scalability, your choice in an IT management model will shape the trajectory of your business's technological capabilities.

Still unsure which model is the right fit? Assess your business needs and align them with the advantages offered by each model. The best decision is an informed one — ensuring that your IT investment yields the maximum ROI and propels your business to the next level.

As you navigate the labyrinth of IT management models, consider the path with Everound, a leading managed IT service provider. We offer services tailored to your specific needs, ensuring cost-effective, secure, and optimized IT systems. Our team can provide comprehensive managed IT services or integrate seamlessly into a hybrid model, enhancing your in-house expertise with our external insights.

Let's start the conversation so we can learn how to best support your business.