Managed IT vs In-House IT: Which Offers Better Value

Managed IT vs In-House IT is a dilema many businesses have on their growth journeys. Is Managed IT really more cost-effective compared to maintaining an in-house IT team?

Businesses heavily rely on technology to drive productivity, efficiency, and development. Whether managing servers, securing networks, or providing user support, IT services are crucial in running operations smoothly. Organisations often face a critical decision when it comes to taking the plunge with managed IT services.

In this blog, we’ll explore the cost-effectiveness of both options to help you make informed decisions that align with your goals and budget. 

Managed IT vs In-House IT

Understanding In-House IT Teams

An in-house IT team consists of full-time employees handling all IT-related duties. These professionals operate within the company and understand its infrastructure, processes, and specific needs. While they may understand the company’s infrastructure and operations, their limitations often outweigh their benefits.


Immediate availability: In-house IT teams are readily on-site, proving beneficial during urgent situations. 

Familiarity with company culture: In-house teams are well-versed in the company’s ethos, facilitating the alignment of IT strategies with overall business objectives. 


Significant cost: Sustaining a skilled IT team demands substantial financial outlay for recruitment, training, salaries, benefits, and equipment. 

Restricted expertise: In-house teams may lack proficiency in specialised areas, resulting in project delays and inefficiencies. 

Limited Availability: In-house IT teams are on-site. So their availability, confined to regular business hours, could leave your business vulnerable to urgent situations and downtime outside these hours.

Understanding Managed IT Services

Managed services involve delegating IT duties to specialised third-party providers. These providers oversee, manage, and maintain the company’s IT infrastructure and services. Managed service providers (MSPs) offer various services, including cloud computing, cybersecurity, data backup, and IT support.

Significant Cost Savings

Choosing managed services can result in substantial cost reductions. You will pay a predictable, fixed fee for services, steering clear of the variable and increasing costs associated with an in-house team.

Unmatched Expertise and Scalability

Managed service providers are dedicated experts in their fields, ensuring your business always has access to the latest technology and highly skilled professionals. Moreover, MSPs can seamlessly scale services up or down based on your evolving needs.

24/7 Support

MSPs provide round-the-clock support, providing unparalleled peace of mind. Your business can receive instant assistance whenever technical issues arise, regardless of the time or day.

Cost Comparison: Managed IT vs In-House IT

There is no universal answer to which option is more cost-effective. However, businesses can evaluate their specific needs and circumstances to make an informed choice. Here are some key considerations:

Initial investment

Establishing an in-house IT team involves significant initial costs, including hiring, training, and infrastructure setup. Conversely, managed services provide a predictable monthly fee, simplifying budget management.

Ongoing expenses

In-house IT teams involve continuous costs, such as salaries, benefits, and ongoing training. Managed services typically come with fixed, transparent pricing, which should prove more cost-effective in the long run.


As businesses expand, their IT needs evolve. Managed services can rapidly adapt to these changing requirements, ensuring companies only pay for services they use, eliminating the need for hiring additional employees.

Specialised expertise 

Managed service providers employ proficient professionals with diverse IT skills. Collaborating with MSPs provides access to a broader talent pool capable of efficiently managing complex tasks.

In choosing between maintaining an in-house IT team and opting for managed IT services, the balance often tips towards the latter. Managed services offer potential cost savings and bring scalability, round-the-clock support, and access to a broad array of specialised expertise. While in-house teams have their strengths, the dynamic, adaptable and cost-effective nature of managed IT services often makes them the optimal choice for businesses looking to stay ahead in the evolving digital landscape.

An extension of your team

SoConnect’s commitment to providing and delivering strategic value to our clients means we become an extension of their team. You get all the advantages of an in-house team with the added expertise of a Managed Services Provider.

We make it our business to align our services with your unique company culture, ethos, and goals. 

If you’d like to learn more, check out some of our resources, fill out a form here, call us on 03332401824 or email  

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