IT leadership

In-house vs outsourced IT: which is right for your business?

2 min read Guillaume Duveau

In-house IT gives direct control but demands significant HR resources, while outsourcing provides consistent expertise at a cost proportionate to the size of the business.

Managing IT in-house or handing that responsibility to an external provider: this is a question many SME founders face at some point, often when the volume of incidents grows or when an internal IT hire moves on. Both options have their logic, and their context.

In-house IT: direct control

Having an employed IT person means having someone you know, who knows the business, and who is physically present. That proximity has value, particularly for companies with specialised equipment, complex internal processes, or a strong culture of self-reliance.

The downside: a single internal IT hire cannot master everything. Security, cloud identity management, server environments, telephony, backups: each area has its specialists.

When that one person is on holiday, ill, or leaves the organisation, the company is exposed. And recruiting a good IT professional takes time and costs significantly.

Outsourcing: expertise without the headcount

An external provider brings a team, not an individual. Behind the regular point of contact sits an organisation with varied competencies, something no single internal hire can offer alone. Absences are covered; specialist knowledge is available as needed.

For a business of 10 to 50 people, this is often the better-fitted model. The IT needs are real and continuous, but do not fill a full-time role. The monthly cost of a managed IT contract is typically lower than the fully-loaded salary of an internal IT hire, while covering a broader scope. We go through that calculation in our article on what outsourcing actually costs.

What outsourcing does not replace

It is worth being honest about the limits. An external provider is not physically in the office permanently. For environments that require frequent on-site work, some responses will be slower. And the relationship takes time to build: a new provider does not yet know your routines, your operational constraints, or your most demanding users.

That is why the choice of provider, and the quality of the working relationship, matter as much as the model itself.

How to decide

Ask yourself: are your IT needs consistent enough to justify an internal hire? Do you have the capacity to manage an IT recruitment process and cover absences? Is your environment standard (cloud, workstations, Microsoft 365) or highly specific?

For most of the SMEs and charities we work with, outsourcing answers these questions better. But it is a decision that deserves a proper assessment of your actual situation. To explore what that looks like in practice, visit our offers page or get in touch directly.

Frequently asked

From what size does an in-house IT role make sense?
There is no universal threshold, but below around 80 to 100 users with a standard environment, a full-time internal IT post is rarely cost-justified. Many businesses get better coverage from an external provider.
Can you have an internal IT person and an external provider?
Yes, and it is quite common. An internal employee handles the day-to-day and internal relationships; the provider brings specialist expertise, continuous monitoring, and out-of-hours cover.
What happens if your internal IT person leaves?
That is precisely one of the vulnerabilities of the in-house model: dependence on one individual. An external provider delivers continuous service regardless of departures or absences.
Does outsourcing mean losing control of your IT?
No. A good provider works transparently, documents what they do, and gives you visibility into your IT environment. You retain decision-making authority; they handle the execution.
Can an external provider really understand the specifics of your business?
A good one invests time in understanding your operations, your constraints, and your critical periods. It is less a question of sector knowledge and more one of relationship quality and the effort made to know you.

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