Managed IT service providers or internal hires: pros and cons

Your organisation’s cyber security, in particular, is not something you should ever leave to chance, as:

The average cost of a data breach was $4.88 million in 2024

Half of all UK businesses reported a data breach in 2023-24

There were approximately 7.78 million cyber-crimes committed against UK businesses in 2023-2024

Cyber security isn’t the only consideration, however. Having inefficient IT processes and mismanaged software can incur significant costs to businesses, reduce operational efficiency, and impede productivity due to using outdated systems.

The cost of getting your IT infrastructure wrong can be significant and alter the trajectory of your organisation, so the decision between managed IT service providers and internal hires is business critical.

Here’s a breakdown of the pros and cons of hiring internally and enlisting the services of a managed IT service provider.

Pros:

They’re close to the business
Internal IT staff work exclusively for your company, so will have an in-depth knowledge of company policy and the inner workings of the business such as processes and

You can access them immediately
Having someone onsite means you can get faster responses to any urgent tasks or incidents.

Cons:

They’re expensive
It’s not just the salaries of internal hires that are so costly. Their training, any bonuses, and even their expenses are also costs to consider. The actual process of recruitment is cost-heavy in terms of resources also, especially due to the specialised nature of IT roles, meaning good hires can be hard to find. IT roles are in demand, so this can lead to significant churn due to employees changing roles. If the hire doesn’t work out, this expensive process has to start all over again.

Expertise is limited
Even the best internal teams cannot have knowledge of all areas in IT. A single team may struggle to keep up with rapidly evolving technologies, cyber threats, and industry updates.

They’re slow to scale
If your business grows, then your IT systems and processes must grow as well. This can be a slow and expensive process if you only have internal resources to utilise.

Pros

They are far more cost efficient
They operate on a retainer basis, where organisations pay a fixed fee for access to managed IT services, tech consultancy, and cyber security expertise all delivered in line with an agreed SLA (Service Level Agreement). This gives companies access to expert regular IT resources without having to continually spend money on recruitment and training costs. Plus, organisations who use IT managed services don't have to budget for the overheads associated with hiring and maintaining full-time staff.

Internal teams also get access to opportunities to upskill and develop their capabilities by learning from the experts!

You benefit from 24/7 protection against threats
They offer 24/7 monitoring, ensuring issues are detected and resolved rapidly to prevent cyber-attacks and minimise downtime.

You get access to more experts
They have teams of IT specialists in all the crucial areas your business needs to cover- from cybersecurity to cloud infrastructure. This means you have access to a broader skillset and dedicated experts, who are fully up to date with all industry updates.

Faster time to value
There’s no need to upskill your managed service provider as you would an internal employee. The experts can get straight to work.

Managed IT services are scalable and flexible
Through growth or downsizing, IT managed services can be tailored to match budgets and requirements- without needing to hire more people or reduce team numbers.

You get peace of mind
Internal teams get peace of mind that complex issues relating to compliance and data protection are being managed. We leverage AI in our threat detection services, so our clients can trust that human error and ‘alert fatigue’ is not putting their business at risk. Your internal teams can concentrate on productive and strategic activities, safe in the knowledge that all IT issues and threats are being addressed.

Cons

They aren’t onsite all the time
While IT managed services can be carried out remotely, some businesses prefer to have an internal team immediately accessible and physically on site.

You have to trust them
Handing over such an important business operation to an external provider can feel intimidating to any organisation. You must be able to trust your managed service provider, so it’s essential to check their track records, case studies, and processes.

While internal hires can be suitable for organisations with a lot of resources, most organisations find that managed IT services provide the optimal balance of cost-efficiency, expertise, and scalability.

By partnering with a managed IT service provider like us, you gain access to an entire team of IT experts at a fraction of the cost of hiring them internally. Not only this, but we have extensive expertise as strategic IT partners, committed to futureproofing your organisation for success.

At Celerity, we work closely with organisations to streamline their operations, improve their cyber security posture, and reduce their IT costs with IT managed services. Find out more about who we work with here.