Managed Services vs. In-House IT: Which is Right for Your Business?

In-House IT

The choice between hiring an in-house IT team or a managed service provider depends on the needs of your business. Many costs are associated with IT employees, including salary, health insurance, utilities, office space and rent, vacation time, and training. Having an in-house engineer works well if your company has a lot of low-level IT requests that can be addressed by tier 1 or tier 2 engineers. However, high-level IT issues can take time for them to resolve.


When it comes to cost-effectiveness, managed service providers come out ahead. They charge a flat monthly fee, which allows businesses to accurately plan their IT budget and avoid paying for unforeseen IT expenses.

Additionally, IT teams that work with a single managed service provider have the advantage of an in-depth understanding of a company’s IT infrastructure, including hardware configurations, software versions, and critical dependencies. This knowledge makes them better equipped to troubleshoot when issues arise than generalist IT employees who must learn as they go. When IT issues occur, MSPs such as Arctic IT Managed Services can respond quickly and resolve the problem before it disrupts business operations. This prevents productivity delays that can hurt overall performance and revenue. It also frees up IT staff to focus on revenue-generating projects.


There is a common perception that managed services companies are a threat to an in-house IT team, but this is only sometimes the case. An internal IT team offers certain benefits, including proximity to help desk issues and the ability to address problems quickly. However, an in-house IT team can get bogged down with low-level requests and might need more scalability to meet the demands of the business during busy times. Moreover, an in-house IT team only works 9-5 Monday through Friday, meaning emergencies outside these hours may take time to address. In contrast, managed service companies offer a wide range of supplemental services to complement an existing IT team and provide scalability during high-demand periods. These additional services can include remote assistance, 24/7 support and back-tested expertise across industries.


Choosing a managed services provider requires businesses to trust their IT support to an outside source. This decision can be difficult, especially if you want a trusted partner who understands your business and its culture.

MSPs often have more IT skills than an in-house team, including 24/7 network monitoring and remote support. In addition, MSPs are continuously learning and developing their skills. This means they can resolve IT problems more quickly than an in-house team. However, it’s important to note that a company may still choose to hire someone in-house who can help with certain tasks. This way, they can remain in control of their IT and not rely solely on an MSP. This option is more cost-effective than bringing in an MSP for every issue.


Companies that use an in-house IT team often do so because they have a dedicated engineer on staff who is familiar with the organization’s infrastructure and knows its processes well. This can help reduce the amount of time that is needed for troubleshooting and problem resolution. However, if that engineer is out sick or on vacation, then the company can experience a significant lapse in IT support. Managed services providers can provide redundancy and 24/7 IT support for their clients. Additionally, managed services providers have a much broader skill set than an in-house engineer, allowing them to identify and resolve IT issues easily. This can be especially important regarding cybersecurity and ensuring that all systems are up-to-date.


An in-house team is great for businesses that want to maintain control of their technology infrastructure. However, building an IT department in-house can take time and effort. This includes allotting space, interviewing candidates, hiring new employees, and ensuring they are fully trained and up to speed. Additionally, companies that manage their integration in-house are responsible for the cost, upkeep and support of hardware and software. This can be costly and can result in less-than-optimal performance.

Additionally, in-house teams may be bogged down with low-level issues that take them away from more important work. And finally, replacing that expertise can be challenging if an in-house team member leaves and takes valuable knowledge with them. Many businesses turn to managed services providers for supplemental IT support for these reasons.

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