Blog Post

When You Should Outsource Your Business IT ?

Jul 28, 2022

Have you been thinking it’s time to add IT to your team of employees? 

Seifert IT Division banner. There is a graphic of two workers at separate multi-monitor desk setups.

You can choose to outsource an IT service for your business. You can also choose to hire an internal resource for IT instead. How do you determine which and when? Let’s break it down to determine the right choice and timeline for you.


When you use a manages service provider like Seifert Technologies, you have access to an entire team of professionals to meet your IT service needs.  Understanding your needs is the first step in determining if your business is a good fit for outsourcing your IT services. Here are some of the things that you should consider as a business owner.



The Cost Breakdown

Internal IT Resource Cost Breakdown

  • Recruitment and Hiring- Potential costs when finding or hiring new employees. Things like advertisement fees, background checks, skills tests, and paperwork administration. This also can relate to hiring wages and offering competitive wages. In a local setting, competitive pay ensures you the best chance of securing the best fit employee. If you're looking to hire an IT person, you most likely want the best fit for the job.

 

 

  • Office Supplies and Benefits- Supplies can include computers, phones, and computer software. It can even include things like more office furniture if needed. You are responsible for providing space and materials for inhouse employees. You should budget allocated pay toward sick days and vacation days. Benefits can include insurance, retirement, and or pension. These things are also required for full-time employees.

 

Outsourced IT Service Cost Breakdown

  • MSP Value- When it comes to Managed Service Providers, cost equals quality. The more money you put into finding and hiring a trustworthy MSP, the higher quality their work will be. This has been the experience of other employers anyway. You will reap the benefits of an expensive MSP, which could make you more money later on.
  • Onboarding- "While working with outsourced developers you only need from a few days up to 1 week to onboard them.” Outsourced IT service providers will need less onboarding than internal hires. They won’t need to learn info about your company outside of the project they’re hired for. They won’t need to learn the ropes. This means IT outsourced onboarding will be cheaper.
  • Surprise Costs- As before mentioned, if you choose an unreliable MSP, you may be losing money in the long run. Cheaper costs upfront are not always the right choice. Think about long term goals when choosing where to spend money. You also need to pay attention to what the contract with an outsourced provider covers. Sometimes there are things that aren't in the contract that classify as extra charges or fees. These things will also lead you to spending more money in the long run as opposed to initial cost.

 

The Size of Your Company Matters

You will know it’s time to hire full-time IT when your business begins growing and your employee count is up. “If you have less than 25 employees, you rarely need an in-house IT person.” When you reach around 100 employees you should consider an in-house IT person.  Your needs depend on the team you have already equipped. A team between 75-100 employees offers enough to keep your IT person busy. This ensures your money is being used well.


Hiring an IT person before your business is big enough can cause more harm than good. Just think about the additional costs of internal employees.  As a business, you have to consider vacation, benefits, sick time and the costs of expertise on implementing technology, monitoring, server maintenance, and cyber security.  Often, outsourcing your IT provides

 

Focus on Your IT Support Needs

Do You Need Someone Onsite to Work on Immediate Issues Often?

If you answered yes, you should consider hiring a full-time internal IT employee. Outsourced IT services will take longer to reach you when you have onsite issues if they can even reach you at all. This is not always possible with remote outsourced IT services. If this happens often, it may be better to have someone onsite all the time to solve problems. 

If you answered no, you could consider a hybrid support option. This means having both a full-time IT person and an outsourced IT vendor. This is the most expensive option, but it is also the best option for the quality of your IT support. You get to use the pros of each option to your advantage. Like hiring a full-time IT person, this option won’t make sense until your company is large enough to do so.

Do You Have Tech Savvy Employees?

Tech Savvy employees will be more comfortable with an outsourced provider. This is because they will know how to interact with the outsourced provider online. Those bad with technology would do better with an internal IT person. This is because they won't get confused trying to navigate virtual communication. You may need onsite IT people even sooner than numbers say if your employees are bad with technology.

A sign points two directions: Hiring internally, outsourcing IT. Symbols for question mark, money, and a man with briefcase

Do You Have and or Use Legacy Systems?

If you have or use custom systems, an internal full-time IT person is crucial. A full-time IT person will learn the custom system quicker being onsite. They will have more time to perfect the ins and outs of the systems. They are also much more willing to learn. Some outsourced providers will choose not to learn your custom systems. If you're putting time, effort, and money into a custom system, the internal IT person should get to know it. They should learn how to use it completely and well. 

 

To Conclude

Before deciding on a full-time internal IT resource or outsourced IT, look at your company. Make sure you're ready to take that step. Look at your employee count and your support needs. Look at how good your employees are with technology and check your finances. After you're ready to take that next step, look at the pros and cons of internal vs. outsourced IT. Notice where your business is at and decide which choice is best for you. Seifert Technologies IT Service is here to help. Contact us today to get a jumpstart on making the right decision!



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