Home Blog In-House IT Team vs. Outsource Tech Support: Which Is More Cost-Effective?

In-House IT Team vs. Outsource Tech Support: Which Is More Cost-Effective?

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IT technical support is one of those key elements you can't just overlook when running your business well. Coming from an experience of witnessing both the pros and cons of having an in-house IT team and having outsourced tech support, I always weigh which is more cost-effective. And for a business, small as it can be or otherwise, decisions like this aren't always that black and white. So, how would you know which one is best suited for your business: an in-house IT team or outsourced tech support?

Let's dive in on the factors you will have to deliberate over when making the most informed decision.

1. The Cost of an In-House IT Team

With an in-house IT team, you have your help desk right at your fingertips. The cost for that convenience, however is hefty. Salaries, benefits, training costs, and so forth add up very quickly. Of course, according to industry reports, the average salary for an IT technician is around $50,000 to $70,000 a year, and that's just for one individual.

And then when you layer on top of this the cost-of:

  • Benefits and health insurance
  • Training and certification
  • Software licensing
  • Hardware costs

You start to see how quickly in-house IT can become expensive for a small business. And then there is turnover-when your best employees leave for greener pastures but leave you lagging behind by months while you are replaced and your hiring costs accumulated.

While an in-house IT team gives you direct hand in managing day-to-day technical issues, it might cost an arm and a leg for smaller to medium-sized companies.

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2. The Flexibility of Outsource Tech Support

On the other hand, outsourcing your tech support could be cheap, particularly for small businesses that need not have an in-house, full-time IT staff. With outsourced tech support, you will typically pay only for what you need-whether it is troubleshooting a network problem, managing software installations, or a cybersecurity solution.

With outsourced IT, you have flexibility. You can scale up or down your needs based on your business. You pay as much support as you need at any given time, rather than paying an in-house team a fixed salary. According to recent studies, businesses can cut 40-60% of their operational costs when they outsource their tech support.

Other benefits of outsourced IT support:

  • 24/7 availability: Most companies offer round-the-clock support, which is helpful if you operate in excess of the 9-to-5 hours.
  • Access to a whole lot more expertise: You will have a team with various skill sets available at your fingertips without hiring multiple specialists.
  • Cost predictability: Fixed monthly fee or price per service-which makes the management of one's IT budget easier.

It is a game-changer for small businesses of limited resources. You get access to a group of specialists without the overhead cost associated with maintaining an in-house team.

3. Quality and Response Time: In-House vs. Outsource

Now, quality and response time: this is a major advantage with an in-house IT team-they're immediate. That's great for the on-site presence when you really need a quick tech fix, maybe to resolve an urgent issue or just need them in the room to troubleshoot something right now. You won't have to wait for someone to come in; you can actually solve little problems faster.

However, outsourced tech support companies have made significant strides in the area of response times, and this is largely due to advanced remote capabilities. More service companies for IT technical support now offer rapid response times, which, at times, are faster than the response a fully functional in-house team could provide, depending on how complex the matter is.

The real question here is whether your business requires constant on-site support or if remote troubleshooting will cut it. In my experience, for most small businesses, outsourced IT technical support can get 90% of issues resolved remotely, in an effective and inexpensive manner.

However, if the business depends much on its IT infrastructure and regularly experiences hardware problems, having in-house may pay off for the sake of speed.

4. Scalability: Which Is Better?

Scalability is one of the major advantages of outsourcing IT support service company. As your business grows, so will your IT needs, and it is much easier to scale up with an outsourced service than with a house team. Hiring more IT staff is expensive, time-consuming, and has other drawbacks, whereas an outsourced small business tech support service can grow seamlessly with you.

Outsourcing firms usually offer tiered plans so that you can scale up the level of service that corresponds to your business growth. In this manner, you escape the headache of hiring, training, and paying more employees constantly to keep pace with the demand for newer technologies.

Alternatively, if your business is expanding rapidly and relies heavily on highly specialized IT systems, then you would more than likely prefer to have an in-house team grow with the company to tailor very customized solutions to your unique needs.

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5. Data Security and Compliance

Every business entity should be concerned with data security in modern times. Whether you handle customers' information or proprietary business data or sensitive transactions, the stakes are sky-high when keeping your systems secure. This brings up a relevant question: which of the options is safer - an in-house IT team or outsource tech support?

An in-house team gives you complete control over your data and can be very comforting especially when dealing with sensitive data. However, the outsourcing does not mean that you compromise on security. Outsourced IT support service company typically specialize in cybersecurity and provide protection far superior to what an in-house team could offer because of their resources and specialization in security technologies.

Second, IT support service company comply in many cases with strict industry compliance guidelines such as HIPAA for healthcare, PCI DSS for finance, or government services, among others, so you can rest easy as you allow us to serve your data needs.

Frequently Asked Questions (FAQs)

How much money can I save using outsourcing tech support?

Indeed, outsourcing your company's technical services can shave off as much as 40-60% operational costs for you, depending on the specifics of your IT requirements and usage.

Is it safe to outsource IT technical support?

Yes, outsourcing small business tech support services is safe, more so when finding a credible service provider. Most outsourced IT businesses provide added security features and compliance that small in-house teams might find hard to equal.

What's best for a small business with minimal IT needs?

For small businesses with very limited needs in terms of IT technical support, this is usually the most cost-effective approach. You would gain access to a staff of professionals without the overhead of a full-time workforce.

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Key Takeaways

This comparison between in-house IT departments and outsourced tech services drew attention to the fact that, although each may have its advantages based on the specific needs of your business, these are the three takeaways:

  • Cost Efficiency: Normally, for the small to medium-sized business owners, it will be the most effective and least costly option that saves them much in terms of operational costs.
  • Scalability: Without having to hire continuously, outsourced small business tech support services can be made adaptive and scalable as your business scales.
  • Security and Expertise: Outsourcing can be a source of ensuring that your business has high-level security measures because it can bring together expertise that your small team cannot.

The best decision for in-house or outsource tech support will come down to the size of your business, how complex your IT technical support needs are, and your budget. Have you tried either approach? Let us know about your experience in the comments!

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