When you need to manage your company’s IT needs, you have two options: hire an in-house IT administrator or outsource to a managed service provider (MSP). Both options have pros and cons, and it can be challenging to determine which is the best fit for your business.

This article helps you decide between using your company’s managed service provider or in-house IT administrators.

What is an In-House IT Administrator?

An in-house IT administrator is a full-time employee responsible for managing your company’s IT needs. They are typically hired to work on-site and are dedicated solely to your company’s IT infrastructure.

Pros of Hiring an In-House IT Administrator

• Dedicated to Your Company: An in-house IT administrator is solely focused on your company’s IT needs, which means they have a deep understanding of your systems and can quickly address any issues.
• On-Site Availability: Having an IT administrator on-site means they can quickly respond to any IT emergencies, minimizing downtime and keeping your business running smoothly.
• Control and Oversight: With an in-house IT administrator, you have complete control and oversight over your IT infrastructure. You can dictate their tools and processes and have a direct say in managing your IT needs.

Cons of Hiring an In-House IT Administrator

• High Cost: Hiring an in-house IT administrator can be expensive, especially for small businesses. You must pay their salary, provide benefits, and cover any training or certification costs.
• Limited Expertise: While an in-house IT administrator may deeply understand your company’s systems, they may have a different level of expertise than a team of professionals at a managed IT service provider. This can limit your company’s ability to implement new technologies and stay ahead of the curve.
• Single Point of Failure: With an in-house IT administrator, you rely on one person to manage your IT needs. If they are sick, on vacation, or leave the company, you may be left without IT support until a replacement is found.

What is a Managed Service Provider?

A managed service provider (MSP) is a third-party company that offers IT support and services to businesses. Its services range from basic IT support to more advanced solutions like cloud computing and cybersecurity.

Pros of Hiring a Managed Service Provider

• Cost-Effective: Hiring a managed service provider is often more cost-effective than hiring an in-house IT administrator. You only pay for the services you need and don’t have to worry about additional costs like benefits or training.
• Expertise and Resources: Managed service providers have a team of professionals with a wide range of knowledge and resources. This means they can provide your company with the latest technologies and solutions without the cost of hiring multiple in-house employees.
• 24/7 Support: Most managed service providers offer 24/7 support, which means you can access IT support whenever needed. This can be especially beneficial for businesses outside of regular business hours.

Cons of Hiring a Managed Service Provider

• Less Control: When you outsource your IT needs to a managed service provider, you have less control over their tools and processes. This can concern some businesses, especially those in highly regulated industries.
• Off-Site Support: Unlike an in-house IT administrator, a managed service provider is not physically located at your company’s office. This means they may need more time to respond to emergencies than an on-site employee.
• Less Familiarity with Your Systems: While a managed service provider may have a team of experts, they may not be as familiar with your company’s systems as an in-house IT administrator. This can lead to longer resolution times for IT issues.

What is Co-Managed Services?

In addition to hiring an in-house IT administrator or outsourcing to a managed service provider, another alternative is co-managed services. Co-managed services involve a partnership between your internal IT team and an external managed service provider. This hybrid approach allows your company to benefit from the expertise and resources of a managed service provider while still retaining control over certain aspects of your IT infrastructure.

Pros of Co- Services

• Enhanced Expertise: By partnering with a managed service provider, your internal IT team can access additional expertise and resources. This can help your company stay up-to-date with the latest technologies and industry best practices.
• Scalability: Co-managed IT services offer scalability, allowing your company to adjust the level of support based on your changing IT needs. This flexibility can be particularly beneficial during periods of growth or when undertaking new IT projects.
• Customization: With co-managed IT services, you can customize the level of support based on your specific requirements. This tailored approach ensures that your company receives the support it needs without paying for unnecessary services.
• Redundancy:

Employee redundancy is an important aspect to consider when managing IT needs in a company. Employee redundancy refers to having backup or additional staff trained and capable of taking over responsibilities in case the primary employee is unavailable for reasons such as sickness, vacation, or leaving the company.

In the context of IT administration, having redundancy can help ensure the continuity of IT services and minimize disruptions in case the primary IT administrator is unavailable. Companies must have plans to address employee redundancy to maintain operational efficiency and mitigate risks.

Cons of Co-Managed IT Services

• Coordination Challenges: Coordinating between your internal IT team and the managed service provider can sometimes lead to communication challenges or conflicts in decision-making. To mitigate these issues, it’s essential to establish clear roles and responsibilities.
• Cost Considerations: While co-managed IT services can be cost-effective compared to maintaining an in-house IT team, partnering with a managed service provider is still associated with costs. Evaluating the financial implications is essential to ensure it aligns with your budget.

In conclusion, co-managed IT services offer a middle ground between having an in-house IT administrator and fully outsourcing to a managed service provider. This approach can provide your company with the benefits of both options while addressing specific needs and preferences. Consider the pros and cons carefully to determine if co-managed IT services fit your business.

Which Option is Right for Your Business?

There are a few key factors to consider when deciding between hiring an in-house IT administrator and outsourcing to a managed service provider.

Budget

Cost is a major consideration when choosing between an in-house IT admin and a managed service provider for businesses. If your company needs more funds, consider hiring a managed service provider instead of handling it internally. This option could be more cost-effective for your business. Managed service providers can offer lower costs than maintaining an in-house team. This can help your company save money in the long run. However, suppose you have the resources to hire an in-house IT administrator. In that case, they can provide more personalized support and expertise.

IT Needs

The complexity of your company’s IT needs is another important factor. Suppose your IT needs are relatively simple and don’t require a lot of ongoing support. In that case, an in-house IT administrator may be sufficient. However, a managed service provider may be the better option if your company relies heavily on technology and requires more advanced solutions.

Industry Regulations

Some industries have strict regulations regarding data security and IT management. If your company operates in a highly regulated industry, you may feel more comfortable having an in-house IT administrator who is familiar with the regulations and can ensure compliance.

Conclusion

Hiring an in-house IT administrator and outsourcing to a managed service provider have pros and cons. Ultimately, the decision will depend on your company’s budget, IT needs, and industry regulations. Consider all of these factors carefully before making a decision, and remember that you can always switch to a different option if your needs change.