IT outsourcing versus an in-house IT employee: what is worth it

Every company eventually reaches the question: hire your own IT person, or entrust IT to an external firm? Both paths have their advantages and pitfalls. Let us compare them fairly so you know what is worth it for you.

An in-house IT employee

An internal IT specialist is your full-time person who knows the company from the inside.

Advantages

• Immediate physical availability right at the workplace.
• Knows your environment in detail, the people and the habits.
• Full loyalty to one company.

Disadvantages

• High fixed costs. Salary, contributions, holidays, equipment and training run constantly, even when there is little work.
• One person cannot cover everything. IT is broad, from networks through security to servers. An individual cannot be an expert in everything.
• A cover problem. During holidays or illness the company is left without IT.
• The risk of dependence on one person who may leave along with the know-how. This relates to the article on an employee’s departure and IT.

IT outsourcing (an external firm)

With outsourcing, an external partner takes care of your IT under a contract.

Advantages

• A team instead of an individual. You have several experts for different areas available for the price of one.
• Predictable costs. You pay an agreed flat rate or as needed, without the cost of equipment and training.
• Cover and availability. One technician’s holiday does not endanger operations, someone always stands in.
• Experience from several companies and modern practices.
• Scalability. The scope can be flexibly changed as the company grows.

Disadvantages

• Not physically with you all the time, although many things are solved remotely instantly.
• You need a good partner and a clear contract with defined response times.
• Less immediate knowledge of the environment at the start, until the partner gets to know the company.

Comparison in a nutshell

When each is worth it

• An in-house employee makes sense in a larger company with lots of daily IT work, where a full-time role is really used.
• Outsourcing is advantageous for small and medium companies, where an internal IT person would not be fully occupied, but IT must work reliably.
• A combination is common: an internal person for routine operations and an external partner for specialized areas like security, servers or projects.

Why a company needs IT support at all is discussed in the article on why a company needs IT support.

Conclusion

An in-house employee is about physical presence and deep knowledge, outsourcing about broader scope, cover and predictable costs. For most small and medium companies, outsourcing or a combination is the more sensible choice.

Considering how to handle IT at your company? Get in touch, we will look at your situation and propose a solution that makes sense financially and operationally.

This article is part of our Business and IT overview.