The Pros and Cons of Outsourcing IT Services vs. In-house Staffing

There comes a point where you need help running your business. However, you may be in that awkward growing period where you have too much work but not enough money to hire a full staff. Or maybe, you don’t think you need an IT department to protect your digital infrastructure.

Outsourcing IT Services vs. In-house Staffing
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Why Should You Hire an IT Department?

Whether you’re a large enterprise or small startup, a vulnerable IT infrastructure can cost you time, money, and your reputation if you get hacked. It’s only a matter of time before your whole system gets compromised, as 80-85% of surveyed companies have been successfully hacked.

60% of small companies are forced to close within six months after a cyber attack, so it’s vital that you hire an IT department as soon as you’re able. The only question is, should you hire a team yourself or find a trustworthy managed IT company to take over your department instead?

Pros and Cons of Hiring an In-House IT Team

Hiring an IT service team to help you with your infrastructure can be a great idea for most startups, but they aren’t for everyone.

Here are the pros and cons of hiring an in-house team.

  • Pro 1: Investing in New Skills is a Good Idea

You, your business, and your in-house IT staff members benefit from cross-training and skill development. If you invest more time and money in training your team, they’ll stick around longer. They’ll also be willing to tackle projects outside their expertise and general scope.

  • Pro 2: Your Team is Likely More Invested

The right outsourced IT team will care about your business, but they won’t be as invested or engaged with your company. In-house teams are often flexible, highly motivated, and happy to collaborate with the rest of their co-workers, which benefits company culture and productivity.

  • Con 1: Higher Ongoing and Hiring Costs

When you hire full-time team members, you need to pay a salary plus benefits. While most IT tasks pay for themselves, teams won’t be cost-effective unless they’re talented. Considering IT staff are in short supply, it may take you months to hire and onboard a full, ongoing department.

  • Con 2: Asking for too Much Causes Burnout

There are only so many hours in the day, and your overtime is really expensive. To maintain your systems full-time, you’ll need to hire multiple teams or expect your staff to be on call 24/7, which isn’t ideal for you or your team. Excessive work will cause burnout and increased costs.

Pros and Cons of Outsourcing an IT Team

An outsourced IT team is either composed of freelancers or an agency that employs IT staff. If you want to get the most out of your IT team, try researching managed IT service companies.

  • Pro 1: Access to Cost-Effective and Flexible Talent

There are several services you can outsource to save costs, and IT is one of them. You may experience sticker shock after considering one of these services, but over time you’ll spend less on outsourcing than hiring. That’s because you’ll instantly gain access to flexible IT talent.

  • Pro 2: Faster Turnaround and Constant Surveillance

You may not have enough resources to finish projects quickly if you just stick to an in-house team. By outsourcing, you’re able to get more done faster. You’re also able to benefit from constant system surveillance, as most managed IT services are operational 24 hours a day.

  • Con 1: Lack of Communication and Less Control

With an in-house team, you can walk directly to your staff or create a policy that enables quick message replies for urgent projects. When you outsource, you don’t have as much control or visibility over your staff. This can make communicating difficult, so choose your team wisely.

  • Con 2: Possible Negative Effects on Company Culture

Outsourcing causes anxiety in the workplace because they’ll assume they’ll be replaced. This stress can affect morale and productivity, so it’s essential to speak to your staff before you roll out your outsourcing initiative. If they are being replaced, be honest and direct as to why.


The choice to hire an in-house or outsourced IT team is dependent on your needs. If you’re a large business and need accessible, 24-hour IT staff, you should hire a full team. If you’re a startup that can’t afford to run or manage an IT department, outsourcing is your best option.