In-House vs. Outsourced IT for Your Business

IT requests are taking up more and more time. Someone on your team is helping colleagues troubleshoot between their regular tasks, or your IT manager is struggling to move projects forward. Should you hire, bring in an external provider, or combine the two?

For a small or medium-sized business, the right choice depends on the work involved, the expertise required, and the availability you need. An in-house employee brings day-to-day knowledge of your business. An external provider can take on clearly defined responsibilities. Co-managed IT lets you share the workload between both.

Start by identifying the work that needs to be covered

Employee count is a useful starting point, but it is not enough to make the decision.

Two businesses of the same size can have very different needs. An office that relies mainly on cloud tools operates differently from a company with a warehouse, several locations, and evening or weekend operations.

Start by separating your IT needs into three types of work:

Day-to-day support: helping employees, setting up workstations, and resolving issues.
Ongoing management: maintaining systems, managing access, checking backups, and keeping track of equipment.
Projects: rolling out software, upgrading a network, opening a location, or preparing for an office move.

This breakdown helps you see what requires a regular on-site presence, what can be handled by a partner, and where you may need specialist expertise for a specific task.

When does hiring an in-house IT employee make sense?

Hiring can be a good choice when there is enough ongoing work and your operations require a thorough understanding of the business.

An in-house employee gets to know your users, business applications, workflows, and management priorities. That familiarity is especially useful when coordinating across departments or helping employees adapt to changes.

The role still needs to be realistic. Supporting users, administering systems, managing security, and leading projects require different skills. Depending on the complexity of your environment, one person may need additional support.

Before hiring, ask two questions: what will this person be responsible for, and who can step in when needed? Vacation coverage, absences, and specialist expertise should be part of the plan from the start.

When should you outsource your IT services?

IT outsourcing means assigning certain IT functions to an external provider. Managed IT services generally refer to the ongoing management of your environment within an agreed scope.

This approach can suit a business that needs several types of expertise but does not have enough work to justify building a full IT team. It can also help when employees are spending too much time dealing with IT issues on top of their main responsibilities.

The decision comes down to whether the provider can meet your actual needs:

Which systems and users will they support?
What hours will support be available?
When can they provide on-site assistance?
Which services or projects will be billed separately?

Continuous monitoring does not automatically mean a technician is available around the clock. Support hours, response times, and the terms for on-site service need to be clearly defined.

You will also need an internal point of contact to communicate priorities and approve decisions. The Canadian Centre for Cyber Security recommends defining your business requirements, security requirements, and expected service levels before selecting a managed service provider.[1]

Co-managed IT: keep your team and give them additional support

Your business may already have a capable IT employee but still lack the time or expertise to handle certain responsibilities.

Co-managed IT divides the work between your internal team and an external partner. For example, your IT manager might continue to oversee projects and business applications while the provider handles monitoring, certain maintenance tasks, or part of the support workload.

Consider a hypothetical situation: your IT manager knows the business well, but user requests fill most of their day. A partner could take on some of those requests, giving your manager more time to focus on an upcoming technology upgrade.

A clear division of responsibilities is essential: who receives requests, who handles them, who approves changes, and where documentation is kept.

In-house, outsourced, or co-managed IT: how do they compare?

In-house IT

What need does it address? Dedicated staff with day-to-day knowledge of your operations.

Expertise and availability: Depend on your employees’ skills, their schedules, and the coverage arranged for absences.

Coordination: Managed within your business.

Costs to consider: Compensation, tools, training, and any outside specialists you may still need.

An external IT provider

What need does it address? Assigning defined IT responsibilities to a specialist team.

Expertise and availability: Depend on the provider’s capabilities and the terms of your service agreement.

Coordination: An internal point of contact is still needed to communicate priorities and approve decisions.

Costs to consider: Recurring services, onboarding fees, and any work or licences not included in the agreement.

Co-managed IT

What need does it address? Additional support for an existing IT employee or team.

Expertise and availability: Your team’s skills are complemented by the partner’s expertise, with responsibilities and backup coverage agreed in advance.

Coordination: Responsibilities need to be clearly assigned and documented.

Costs to consider: Internal staffing costs plus the external services that support your team.

None of these models guarantees better service on its own. What matters is whether the people, expertise, and coverage available match the work that needs to be done.

Compare costs for the same scope of work

Comparing an annual salary with a monthly service fee only tells part of the story.

For an in-house employee, consider total compensation, recruitment, training, the tools they need, and any specialist work that may still have to be outsourced.

For an external provider, review onboarding fees, recurring services, included or excluded licences, on-site visits, and projects billed separately.

In both cases, ask the same question: what work will actually be covered for that amount?

One proposal may look less expensive because it covers fewer responsibilities. Conversely, a comprehensive service package may go beyond what your business needs.

Four questions to help you decide

Does the work require a regular in-house presence? Consider your operations and the applications specific to your business.
Which tasks currently lack time or expertise? Distinguish between a capacity issue and a need for specialist skills.
What support do you need outside regular business hours? Account for the schedules of your employees and locations.
What is planned for the next twelve months? New hires, an acquisition, or a new location could change the level of support you need.

Your answers can help you define a position, request comparable proposals, or agree on a division of responsibilities with a partner.

IT services that fit your business

At Maximiz, we can manage all or part of your IT environment, or work alongside your internal team. Our managed IT and support services are tailored to the responsibilities we define together.

For your Quebec business, the conversation can start with three things: what your team already handles well, where they need help, and which projects are coming up.

Let’s discuss the IT support that would work best for your business.

Frequently asked questions

What is the difference between IT outsourcing and managed IT services?

IT outsourcing means assigning IT functions to an external company. Managed IT services generally involve the ongoing management of all or part of your environment, including maintenance, monitoring, administration, and support, depending on the agreement.

How many employees should a business have before hiring an IT professional?

There is no single threshold that applies to every business. Workload, system complexity, operating hours, and the need for on-site support are more useful factors when deciding whether to create an in-house role.

Can we keep our IT manager and still work with a provider?

Yes. Co-managed IT lets you retain your in-house employee or team while adding outside support. Depending on your needs, the partner can handle recurring tasks, provide specialist expertise, or contribute to projects.

Is outsourcing IT always less expensive?

No. The comparison depends on the responsibilities covered, the level of service, and the resources required. You need to compare the full costs of delivering the same scope of work.

Reference

[1] Canadian Centre for Cyber Security. Cyber security considerations for consumers of managed services (ITSM.50.030).

IT Services for Small and Medium-Sized Businesses: Should You Hire In-House or Outsource?