Building and maintaining an in-house IT department can present several challenges, from budget constraints to operational inefficiencies. As a business, having an internal IT team may make sense, as it offers control over your infrastructure. However, many businesses struggle to keep up with evolving cyber threats, new technology, higher IT demands, and unexpected costs.
That’s where an outsourced IT partnership can help. Backed with extensive resources and a team of experts, some businesses find that partnering with an IT provider has taken a lot of the pressure off of the business and allowed the internal IT team to enjoy enhanced productivity, data security, and better use of their technology.
Continue reading to learn the differences between in-house IT and outsourced partnerships and why making the switch may be beneficial for your business.
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Understanding in-house vs. outsourced IT providers
Before you decide whether to use an in-house or outsourced IT provider, it’s important to understand the key differences between the two. Each model differs in cost, business responsibility, expertise levels, and long-term scalability.
If your business is considering a change, start by listing your priorities or reviewing your IT strategy to see how each model will help you achieve those goals.
Ask yourself the following questions:
- What are the specific goals and requirements for the IT department to achieve?
- What is the current size and scope of the IT infrastructure and systems in use?
- What budget does the business have available for IT operations and support?
- What does the current IT support look like?
- What is the long-term IT strategy and growth potential?
- How important is data security and compliance for the business?
Once you have a firm understanding of the business’s position on each of these questions, you can compare the two different models and see which one best meets your needs.
| In-house IT department | Outsourced IT providers | |
| Cost | Higher upfront costs due to investments in hiring, training, and upskilling the team to meet the infrastructure needs and ongoing IT responsibilities. On average, it costs a company 21% of its annual salary to replace an employee. | With an outsourced IT provider, it is no longer your company’s responsibility to hire, onboard ,and train new employees. You will get access to trained employees without the initial cost of building a team from scratch. |
| Flexibility | Offers more immediate flexibility in customization due to the direct control over resources. However, scaling can be more difficult because it requires more time and investment from the business. | Provides more flexibility by providing scalable services that can quickly adapt to the evolving needs of the business. |
| Expertise | The team is only exposed to that one organization’s problems. However, outsourced partners have seen it all and can adapt their proven processes to suit the unique business needs. | Teams have extensive experience in a variety of issues and offer specialized teams paired with robust security measures to handle each unique business needs. |
| Scalability | The ability to scale up or down can be difficult for internal teams, as the responsibility of training falls on the business and may be limited due to resources or budget restraints. | Outsourced partners can offer individual services that can be scaled up or down to adapt to the changing needs or projects of the business. |
| Security & Compliance | Internal teams have control over their data security measures and compliance – however, ensuring that they are always following best practices and are updated on the latest changes in compliance also falls on the team. | IT partners are more likely to be up-to-date on the latest regulatory measures and industry standards. In order to retain business, the team is motivated to continue building trusting business relationships. So they will be motivated to stay on top of the latest technology to best serve their clients. |
Considering these key factors is essential for choosing the right option for your business. While an in-house IT team may provide direct control, it also demands more time and resources to maintain compliance, scale the business, and keep data secure. Outsourced IT providers offer access to specialized expertise, scalable services, and predictable costs, although they provide less direct oversight.
In addition to these comparisons, in-house departments have their own set of common pitfalls that businesses should be aware of.
4 Common IT problems for in-house IT departments
Even a well-structured in-house IT team can face substantial challenges that can impact the efficiency and effectiveness of their efforts. Issues like talent shortages when hiring and gaps in expertise have been found to affect many in-house IT departments and put business operations at risk.
Without the necessary support, IT teams may struggle to sustain their efforts with the increasing security demands. Let’s take a closer look at the four most common IT problems for in-house IT departments and how they may be affecting your business.
1. Talent development and management
Recruiting, retaining, and upskilling a team of IT professionals can be an arduous task — especially if your business needs quick solutions. According to the IDC, the continuing shortage of skilled IT professionals will negatively impact nine out of ten companies by 2026 and could cause a loss of $5.5 trillion due to delays, issues in quality of work, and revenue loss. Given the current shortage of trained IT professionals, it can be extremely difficult to form a qualified team that can handle the workload.
This shortage may force businesses to rely on their current IT personnel, which creates significant stress on the team and an opportunity for a singular point of failure. This overwhelming workload can lead to job dissatisfaction, driving employees to search for jobs elsewhere, and adding additional stress to the small team. If a business depends on a small IT team to handle all responsibilities, it will very likely lead to severe consequences, such as disruptions in productivity or strained client relationships.
2. The limitations of in-house expertise
Though in-house teams come with their own experiences and backgrounds, it’s common for in-house IT departments to struggle in specialized areas. For example, an in-house team may be proficient in cloud computing, but they may have little cybersecurity experience: an integral part of any IT strategy.
A gap in expertise can create insufficient IT strategies, infrastructure, technology transitions, and more. Unfortunately, upskilling or relying on self-training programs will take time and require additional resources from the business. This knowledge gap can negatively impact your business’ security standards and compliance, which may cause internal employees to feel overwhelmed by all the additional upskilling they now have to do.
3. Building an effective IT strategy with strict budget restraints
We have found that many in-house IT teams are forced to take a reactive approach due to their limited resources and strict budget restraints. Oftentimes, businesses cannot allocate a sufficient budget to their IT department, making it difficult to invest in proactive solutions.
This leads to potential risks and tends to encourage overspending. When mistakes are made, issues are missed, or teams operate without a clear strategy, businesses are forced to pay for quick but expensive solutions to protect their data, reputation, or security.
As the IT landscape continues to become more complex, it’s more critical than ever to create clear strategies and budget plans. Implementing a budget for everything from immediate costs to long-term growth costs will ensure that the technology and the IT team can fully support the business’s needs.
4. Operational inefficiencies
If employees are overburdened with an endless list of tasks and fires to put out, they will become burnt out. This is true for any position; however, when IT professionals experience burnout, it could cause more than just a backup of responsibilities.
Burnout in IT teams may lead to data breaches, cyberattacks, revenue loss, performance issues, productivity issues, and other issues. When a team member becomes burnt out and needs a break, their work will transition to the next employee, creating a vicious cycle of exhausted teams.
How IT partnerships can help your business overcome these challenges
Avoiding these common pitfalls in internal IT departments can improve business security, productivity, budgeting, and overall employee satisfaction. Finding a reliable IT partner will offer your business comprehensive support and extensive expertise needed to allow the business to grow.
When your current team feels overwhelmed, an outsourced partner can help reduce the need for hiring, training, and upskilling new members. With a team of experts, your business can benefit from the knowledge, training, and resources that an outsourced partner provides. Additionally, the business can better plan its budget for the year, as many outsourced providers offer clear and predictable pricing models along with the ability to scale services as needed.
With a professional IT partner like Applied Tech, your business can not only avoid these common issues but also experience exponential growth and the opportunity to scale. If you’re interested in partnering with an IT provider, contact our team to learn more about our services.
About Applied Tech
Applied Tech is a leading IT and cybersecurity services provider dedicated to helping businesses protect their digital assets. Our proactive and strategic services include cloud management, security, productivity, and IT growth strategy. With a team of experienced professionals, we provide unique solutions tailored to your IT needs.
Protect your business with Applied Tech’s fully managed IT services, co-managed support, and security assistance. With IT services focused on your business goals, keep your team productive and your data secure.
