Outsourcing vs Hiring IT
With standard “break/fix” service contracts, you wait for something to breaks, everything grinds to a halt, and you fix it post-mortem. That makes sense – if you’re okay with hours of downtime. But imagine if IT didn’t break in the first place…
Managing IT is mission-critical, and so is keeping costs manageable. Businesses want to save money on products and services wherever possible without cutting too deeply into value.
One way to reduce operating expenses is outsourcing. Is outsourcing IT worth the cost savings, or should you hire internal IT staff? Here’s what you need know before making a decision.
Comparing IT outsourcing costs to hiring
Trimming operating costs by managing IT on your own is a challenge for small business owners. They often put a few basic IT practices in place without creating a multi-tiered IT security strategy. Unless you’re an IT professional yourself, it’s better to hire a dedicated IT employee or outsource to an experienced managed service or co-managed provider.
The primary difference between the two approaches is the working relationship. Hired employees need to be vetted, onboarded, trained, and managed. A managed service provider doesn’t require training and arrives with skills right out of the gate. Plus employees are paid hourly or on salary, while outsourced professionals are paid only for specific jobs. Outsourced IT providers can handle time-consuming or specialty work to supplement your internal IT team.
If you don’t have internal IT, you need to compare the cost of outsourcing with an MSSP to hiring a dedicated employee. By simply outsourcing IT instead of doing it in-house with additional headcount, some companies save ~40% annually!
Here’s a breakout of the costs of outsourcing IT vs hiring IT:
From our hiring vs. outsourcing infographic
When you invest in outsourced IT from PCGiT, you can expect:
- Peace of Mind – systems are monitored 24/7
- Less Downtime – we identify and fix issues before they cause problems
- Fewer Disruptions – we provide most services remotely or overnight
- Predictable Budgeting – all-inclusive, all-you-can-use, flat-rate IT services, hardware, and software
- Project Management – we can assist with any project scope or services
- Hiring – no need to worry about constant turnover and hiring
- Time – free up time to focus on business and critical technology needs
Outsourced IT solutions offer more reliable performance and more predictable expenses. You’ll also get more value from the technology you’ve already invested in, reduce the total costs of IT problems, and downtime. PCGiT puts technology, user, and IT process standards in place that minimize disruptions and ensure that you’re adhering to best practices.
As a marketing agency I was hesitant to get into a big contract with another IT firm but the solutions Dave and his team came up with actually saved us money. It definitely pays to have the right guidance as technology always changes and now it is one less thing we have to worry about. They are consistently educating us and helping us maximize our investments in the technologies that help run our business.
Marketing Agency / Professional Services Firm
What is Outsourced IT or Managed IT Services?
An outsourced IT professional provides various IT functions a business needs. Services used differ greatly between companies, and some businesses rely on outsourced IT for all their IT support and maintenance, while others prefer external support for existing internal IT teams.
A business may choose to a single provider for all their IT needs, or they opt for separate providers to attend to different elements of the company’s IT infrastructure.
Managed IT services are appropriate for many companies that need top tier security and network management. An outsourced managed IT provider can offer network monitoring, analytics and reporting, risk assessments, and more.
Key Elements of a Strong IT Strategy
Your IT infrastructure should be robust and well-tailored to your unique needs. Here are some key elements of a strong IT plan:
- Dedicated Network Administrator
- 24×7 Help Desk
- Team Approach
- 1-3-5-Year IT Planning and Budgeting
- Client Reporting & Dashboards
- Documentation
- Project Management
- Microsoft 365 Specialists
- Business Continuity
- Security Experts
- Cloud/Azure Authorities
- Wireless Gurus
- Servers/Virtualization
- PC/Desktop Support
- IT Consulting/Council
- Vendor Liaison
- Industry Compliance
- Customer Service
- Hardware Support/Repair
With our outsourced IT solutions, all your IT needs are handled externally by our team of experts – so instead of worrying about technology, you can focus on running your business.
Top Benefits of IT Outsourcing
There are numerous benefits of IT outsourcing, including but not limited to:
- Lower overhead – Outsourcing IT has an annual cost significantly less than hiring an in-house IT professional
- Tax deductions instead of tax liability – Hiring an in-house employee means additional tax liability; outsourcing IT can create tax deductions
- No employee training required – You won’t need to provide time-consuming training on workplace policies and processes
- MSPs are ready to help – Hiring an employee and bringing them up to speed takes time; outsourcing IT offers an immediate solution
- Avoid IT nightmares – New employees can make costly mistakes; an IT provider has experience executing comprehensive IT strategies
- Eliminate single points of failure – If you rely on in-house IT, your business is at risk during sick leaves, vacations, or churn
- Hire for what you need, not what you don’t – Outsourcing IT trims costs because you’re only hiring for your specific needs
- Save time and money – IT is taken care and the office isn’t left unattended during IT training or events, plus you don’t have to invest in R&D and competencies
- Document critical IT processes – Often hired IT’s “tribal knowledge” stays with them in their role and isn’t shared or accessible to the business. MSPs can document important IT processes so they can be replicated
Why choose PCGiT?
Selecting a managed IT service provider doesn’t have to be intimidating. At PCG, we take pride in offering a wide variety of solutions. Our technical engineers, each with many skills and competencies, allow for better problem solving, less downtime, and more uptime and efficiencies.
If you’re like most SMBs, you don’t have access to the same plethora of tools, 24/7/365 monitoring, and skillsets that managed IT service providers do. PCG has the expertise needed for IT planning, budgeting, and security risk minimization, and we adapt as IT requirements evolve.
IT is a lot. We get it!
Want to stop worrying about cybersecurity, IT/network infrastructure, and user management? PCGiT gives you predictable cost outcomes, flexible plans, and the security coverage you need. Make an informed decision – let’s chat!
