Outsourcing vs. In-House IT Services: Which Is Better?

Did you know that there were more than 1,100 data breaches faced by businesses in the United States of America in the year 2020? Never in the history of business has IT services been more important for your success and security. Getting the best IT services means that your devices will be updated and your networks will be protected.

The real dilemma starts when you are trying to determine if outsourcing vs in house IT services are the right fit for your business and your data security. There are many benefits that come with each option but it is important to your business that you get the best managed services.

Going with the in house option means hiring additional team members and possibly training current employees to handle your IT needs. Getting a Managed IT Services provider means that you’re hiring experts. The good news is that you’re in the right place to learn more about your different options and their benefits.

Keep reading this article to learn more about hiring a managed service company today.

What Is the Difference Between Outsourcing vs In House?

The big difference when it comes to outsourcing and in house IT services is that you’re bringing in help from outside of your company to help manage your IT needs if you choose to outsource. This could be hiring freelancers that are experts when it comes to providing IT services or it could be a managed IT company.

Outsourcing is a valuable option for most businesses to have because it allows you to get things done in a quick and efficient manner without having to bring on full-time employees.

Going with in-house IT means that you’re using existing employees or bringing on new employees to help you handle your IT needs. This could involve training these people and helping them get up to speed while learning on the job. These workers are often more familiar with your business and your operating processes which gives them an advantage over a freelancer or outsourced services.

Pros of In-House IT

There are a number of benefits that you’ll gain by building an in-house IT department for your business in addition to a higher level of familiarity. Knowing these reasons is vital for determining if the time and the resources are worth it for getting your IT services taken care of.

Helps Workers Gain New Skills

Your business is likely to see a good number of projects and each of these projects are an opportunity for your employees to learn new skills and hone existing ones. This is huge with an in-house IT team because they can develop a strong base of skills and continue to build on that with each project that they work on and help with.

Investing in your employees is also great because it gives them a reason to get invested in working for your company. If you invest in helping them learn new skills then they’re more likely to stick around for the long haul with your business. This means the investment into helping your workers grow will continue paying dividends for years to come.

You Set Their Schedule

With in-house IT employees, you control their schedule and set the times where you think you’ll need their skills and expertise the most. This doesn’t matter if your employees work from home or work in the office, it is important that they’re working when you need them most.

It is a great approach to make sure that their schedule overlaps with that of your other employees so that they’re available if something goes wrong. This makes collaborating and working together on large projects a much easier task. This is also an advantage over hiring contractors or IT consulting because they don’t work set hours that work best with your company.

You Have a Flexible Team

Going with the in-house option when it comes to IT services is also great because your team has flexibility. You’ll know that everyone working on your next big project is invested in helping your business grow. You’ll also know that they believe in and share your company’s values and vision.

They know that the success of your project and your business is linked with their future success. This helps them find the drive and motivation to overcome tricky obstacles that might cause them to give up.

Cons of In-House IT

There are also a number of drawbacks to going the in-house route with your IT services. You need to weigh these cons to make sure that they’re not greater than the benefits that you stand to gain. Here is a closer look.

Higher Costs

You’ll have to pay money for great IT services no matter which option you take, but you’ll pay more if you choose the in-house IT services option. This is because you’re paying money for full-time employees that have valuable skills. These employees also require benefits like health insurance and retirement funds.

This is also a long-term commitment on the part of your business. With a freelancer, you can cut ties as soon as the project is completed. With in-house IT, you’re working with those employees long after the project comes to a conclusion.

You might pay more on an hourly basis when hiring a contractor or a freelancer but it will cost you a lot more to manage an in-house IT team each and every year.

Lack of Needed Skills

It is great that you’ll give your employees a chance to learn more skills and grow as professionals, but you’ll also have them learning on the job. This increases the odds of mistakes that could prove costly to your project and to your business’s reputation. These employees don’t have the expertise of all of the necessary skills needed for making sure that your business is protected.

This also limits the options that your business has when it comes to projects that you could choose to work on. If there is a project that requires new skills then you’ll need to pay your workers extra to learn these skills outside of work hours or you’ll need to use valuable work time to get them the training that they need.

Pros of Outsourcing Services

There are a number of pros to outsourcing services when it comes to your business’s IT needs. Knowing these pros will help you understand what your business gains by taking this route. You owe it to your business and your shareholders to make the right decision when it comes to your IT services.

Read more: pricing models for software development services.


Outsourcing your IT services is the most cost-effective option that allows you to get the best managed services possible. Depending on the project and your needs, you can outsource a project to a freelancer that charges less and lives in a country with lower costs of living. This will save you tons of money over having an in-house IT department.


Outsourcing services offer a great amount of flexibility as well. It takes a lot of time, energy, and money to get an in-house IT department up and running. This includes recruiting good candidates, interviewing them, onboarding them, and then training them.

You get to avoid all of these time-consuming steps when you choose to go with a managed service provider for all of your IT needs. You can hire them to work as many hours as your business and the project requires. You can also set up their schedule so that you have their help when you need it most.


You’ll also get to work directly with experts that have the skills that you need for all of your upcoming projects. That isn’t the case when you have an in-house team that needs training in order to handle all of your needs. There are plenty of IT experts that have a focus on a particular niche.

If you’re having trouble with a certain aspect of a project then you’ll have no problem finding a great freelancer or contractor that has the skills to help you out. If anything, you’ll find experts with knowledge and experience that your in-house team could never dream of matching.

Quicker Delivery

One of the things that you’ll need to do when it comes to your projects is to make sure that you’re getting them done by the deadline that the customer sets for you. Working with the best managed services will increase your odds of meeting and exceeding these deadlines.

Going with outsourced services is the best way to ensure that you’ll have all of the knowledge and resources that you need in order to get a project done right the first time. An expert will need less time to get your project finished since they know what they’re doing and won’t make mistakes.

Takes a Burden Off of Your Employees

You’ll also get to take a massive burden off of your employees since they won’t be spending large amounts of time getting training on IT services. This leaves them available to focus on the things that they do best. You’ll find that this is a more effective way to grow your business and help your employees thrive.

Going with an in-house IT team means that you’ll need to hire new employees, which you might not have the budget for. This causes other employees to have to fill those gaps until you get the funds needed to make a new hire. Taking that approach is a great way to burn out your best workers, which could cause them to find other places to work.

Cons of Outsourcing Services

There are also a number of cons that come with choosing to go with outsourced services. Here is a closer look at the things that you’ll want to think twice about before hiring the best managed services.

Worse Communication

An issue that you could run into if you choose to go with outsourced services is a more difficult time communicating with the freelancer or contractor. With in-house IT teams, you’ll have an easy time communicating with them and getting on the same page. You’ll set their schedule and know when they’re working.

If you choose to work with a contractor or freelancer then you need to accept that they’re probably working on multiple projects for multiple businesses. This means that you could get put on the backburner as your project’s deadline approaches. It is difficult to ask for daily check-ins since most of these freelancers need to communicate with other clients.

Less Control

When you’re taking on a big project, it is normal to want a great deal of control over how the project gets done. If you choose to go with outsourced services for the project then you’re accepting that you won’t have as much control over how it gets done. That is a major disadvantage when it comes to comparing outsourcing vs in house IT services.

Harms Company Culture

Another drawback of going with outsourcing services is that it puts a damper on the culture within your company. This gives your employees the feeling that they’re not good enough and that you might replace them. No one enjoys working while feeling like they’re on the brink of getting let go.

Less Commitment

This negative works both ways, but both sides are aware that the commitment to the project is on a short-term basis. The managed services will do their best to deliver the project the way that you want it but the contractor is not committed to helping your business grow. They also know that you’re not committed to helping them beyond the scope of the project that they’re working on.

Choose Between Outsourcing vs In House IT Services for Your Business

Knowing the pros and cons of your different options makes it much easier to make a decision when you’re looking at outsourcing vs in house IT services for your business. An in-house team is committed to growing your business and knows that you’re committed to them. Outsourced services are great because they have expertise that your in house team lacks.

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