Every growing business faces a critical decision: how to handle IT support. As your team expands and technology becomes increasingly central to your operations, the question becomes unavoidable. Should you hire an internal IT person, rely on that tech-savvy team member who “knows computers,” or partner with a managed service provider?
It’s a decision that affects everything from your daily productivity to your long-term growth potential. Get it wrong, and you could face costly downtime, security vulnerabilities, or spiralling IT expenses. Get it right, and technology becomes a powerful driver of business success.
Let’s explore the real-world implications of each approach, so you can make an informed decision that aligns with your business goals and budget.
Understanding Your Options
The DIY Approach: Internal IT Management
Many businesses start with informal, internal IT management. This might involve:
- A team member with some technical knowledge handling IT issues as an additional responsibility
- Hiring a dedicated in-house IT person or department
- The business owner managing IT alongside other responsibilities
- A combination of internal resources and ad-hoc external help
The Managed Service Provider (MSP) Approach
Managed IT services involve partnering with an external company that takes responsibility for your IT infrastructure. This typically includes:
- Proactive monitoring and maintenance of your systems
- Help desk support for user issues
- Strategic IT planning and guidance
- Cybersecurity management
- Regular system updates and patch management
The Hidden Costs of DIY IT
On the surface, handling IT internally appears cost-effective as you’re not paying monthly fees to an external provider. However, the true cost of DIY IT often exceeds expectations:
The Jack-of-All-Trades Problem
When you assign IT responsibilities to existing staff, you’re asking them to become experts in multiple complex fields overnight. Today’s business IT encompasses:
- Network administration and security
- Cloud services and data management
- Cybersecurity and compliance
- Hardware maintenance and procurement
- Software licensing and updates
- Email and communication systems
- Backup and disaster recovery
- Strategic technology planning
Expecting one person to master all these areas whilst maintaining their primary job responsibilities is unrealistic. As a result, important tasks get overlooked, problems are solved inefficiently, and your team member may become frustrated and overwhelmed.
The Learning Curve Cost
Every IT issue becomes a research project when you’re learning on the job. What takes an experienced IT professional minutes to resolve can take hours for someone figuring it out for the first time. This learning time translates directly to lost productivity and extended downtime.
The Single Point of Failure Risk
Relying on one person for all IT knowledge creates a dangerous vulnerability. What happens when they’re on holiday, off sick, or decide to leave? Suddenly, you face:
- Complete loss of IT expertise
- Inability to resolve urgent issues
- Difficulty understanding existing systems and configurations
- Expensive knowledge transfer processes
Hidden Infrastructure Costs
DIY IT often leads to ad-hoc technology decisions that seem economical initially but prove expensive long-term:
- Incompatible systems that don’t integrate properly
- Inadequate backup solutions that fail when needed
- Under-specified equipment that requires premature replacement
- Security gaps that expose your business to cyber threats
- Licensing inefficiencies that waste money
The Reality of Hiring In-House IT Staff
Recognising the limitations of informal IT management, many businesses consider hiring dedicated internal IT staff. Whilst this addresses some DIY challenges, it introduces new considerations:
The True Cost of Employment
The salary is just the beginning. When you hire internal IT staff, you’re also paying for:
- National Insurance contributions
- Pension contributions
- Holiday and sick pay
- Professional development and training
- Equipment and workspace
- Recruitment costs
- Potential redundancy costs
A £40,000 salary typically costs closer to £55,000-60,000 when you include all employment costs.
The Skill Gap Challenge
Finding IT professionals with the right mix of skills is increasingly difficult. The IT job market is competitive, and skilled professionals command high salaries. Even if you find someone excellent, they may specialise in certain areas whilst lacking expertise in others your business needs.
Keeping Skills Current
Technology changes rapidly. Your internal IT person needs ongoing training to stay current with:
- Emerging cyber threats and security best practices
- New software versions and platform updates
- Industry regulations and compliance requirements
- Hardware innovations and compatibility issues
Training costs, conference attendance, and certification renewals add up quickly. Without this investment, your internal IT person’s skills become outdated, potentially putting your business at risk.
The Isolation Factor
Internal IT staff often work in isolation, without peers to collaborate with or bounce ideas off. This can lead to:
- Slower problem-solving
- Missed opportunities for efficiency improvements
- Outdated approaches to common challenges
- Lower job satisfaction and higher turnover
The Managed Service Provider Advantage
Professional managed IT services address many of the challenges inherent in DIY and in-house approaches:
Access to a Complete Team
Rather than relying on one person’s expertise, you gain access to a team of specialists. Each team member focuses on their area of strength:
- Network specialists who understand complex infrastructure
- Security experts who stay current with emerging threats
- Cloud architects who can design scalable solutions
- Help desk technicians who excel at user support
This specialisation means faster problem resolution and more comprehensive solutions.
Proactive Rather Than Reactive Support
Instead of waiting for problems to occur, managed service providers monitor your systems continuously, identifying and resolving issues before they impact your business. This proactive approach:
- Reduces downtime significantly
- Prevents small issues from becoming major problems
- Improves overall system reliability and performance
- Allows for better capacity planning and resource allocation
Predictable Costs
Managed IT services typically operate on fixed monthly fees, making budgeting straightforward. You know exactly what you’ll spend on IT support each month, with no surprise costs for emergency repairs or urgent assistance.
24/7 Coverage
Business doesn’t stop at 5 PM, and neither do IT issues. Professional managed service providers offer round-the-clock monitoring and support, ensuring problems are addressed quickly regardless of when they occur.
Enterprise-Level Security
Small and medium businesses often can’t justify the cost of enterprise-level security solutions on their own. Managed service providers leverage economies of scale to offer sophisticated security tools and expertise that would be prohibitively expensive for individual businesses.
Strategic IT Planning
Beyond day-to-day support, managed service providers act as strategic IT advisors, helping you:
- Plan technology investments that support business growth
- Identify opportunities for efficiency improvements
- Navigate complex technology decisions
- Prepare for future technology needs
When DIY IT Might Make Sense
Despite the advantages of managed services, internal IT management can be appropriate in certain circumstances:
Very Small Businesses
If you’re a micro-business with just a few employees and simple IT needs, managed services might not be necessary. However, even small businesses benefit from having a relationship with a managed service provider for strategic guidance and complex issues.
Highly Specialised IT Requirements
Some businesses have such specific IT requirements that they need dedicated internal expertise. However, this is rare and typically applies to technology companies or businesses where IT is a core competitive advantage.
Abundant Internal Resources
Large organisations with substantial IT budgets can justify building comprehensive internal IT departments. However, most SMEs fall well short of having the resources needed for this approach to work effectively.
The Hybrid Approach: Best of Both Worlds?
Some businesses adopt a hybrid model, combining internal IT resources with managed services. This might involve:
- Keeping a senior IT person internally for strategic oversight
- Using managed services for day-to-day monitoring and support
- Partnering with specialists for specific projects or expertise areas
This approach can work well for larger SMEs but requires careful coordination to avoid confusion about responsibilities.
Making the Right Choice for Your Business
Several factors should influence your decision:
Business Size and Complexity
- Micro-businesses (1-10 employees): Simple IT needs may be manageable internally, but consider managed services for peace of mind and strategic guidance.
- Small businesses (10-50 employees): Usually benefit significantly from managed services, as IT complexity increases rapidly with business size.
- Medium businesses (50+ employees): Almost always require either comprehensive managed services or substantial internal IT departments.
Industry Considerations
Some industries have specific IT requirements that influence the decision:
- Regulated industries (finance, healthcare, legal) often benefit from managed services with specific compliance expertise
- Technology-dependent businesses may need more comprehensive support regardless of size
- Traditional businesses with simple IT needs may manage with less extensive support
Growth Trajectory
If you’re planning significant growth, managed services can scale more easily than internal resources. Building internal IT capabilities takes time and may not keep pace with rapid business expansion.
Risk Tolerance
Consider your tolerance for IT-related risks:
- Low risk tolerance: Managed services provide better coverage and redundancy
- High risk tolerance: Internal management might be acceptable, though not recommended
- Compliance requirements: Often necessitate professional IT management
Budget Considerations
While managed services have ongoing costs, compare these to the total cost of internal IT management:
- Salary and employment costs
- Training and certification expenses
- Equipment and infrastructure costs
- Opportunity costs of downtime and inefficiencies
Common Misconceptions About Managed IT Services
“It’s Too Expensive”
When you calculate the true cost of internal IT management, including hidden costs like downtime, inefficiencies, and opportunity costs, managed services are often more economical.
“We’ll Lose Control”
Professional managed service providers work as partners, not replacements. You maintain control over IT strategy and decisions whilst delegating day-to-day management to experts.
“Our Needs Are Too Specific”
Experienced managed service providers work with businesses across many industries and can adapt to specific requirements. They often bring valuable insights from other clients facing similar challenges.
“We Don’t Want to Depend on an Outside Company”
This concern is understandable but misplaced. You’re not becoming dependent – you’re partnering with specialists who can provide better service than internal resources. Most managed service providers have better redundancy and disaster recovery capabilities than individual businesses can achieve internally.
The Strategic Advantage
Ultimately, the choice between internal and managed IT support is about more than cost – it’s about strategic advantage. Professional IT management allows you to:
- Focus on your core business activities
- Leverage technology for competitive advantage
- Scale efficiently as your business grows
- Reduce risk and improve reliability
- Access expertise that would be difficult to build internally
How Bandicoot Makes the Transition Seamless
At Bandicoot, we understand that switching IT providers can feel daunting. That’s why we’ve developed a proven transition process that minimises disruption and ensures a smooth changeover:
Our Assessment Process
- Comprehensive IT audit of your current environment to understand exactly what you have
- Pain point analysis to identify immediate improvement opportunities
- Requirements mapping to ensure our services align perfectly with your business needs
Seamless Onboarding
- Detailed transition timeline developed specifically for your business
- Minimal disruption planning to keep your business running smoothly throughout the changeover
- Secure data migration with full security protocols to protect your information
- Team preparation including training on how to contact our helpdesk and work with our systems
Ongoing Partnership
- Regular communication through scheduled reviews and annual strategic assessments
- Proactive monitoring with continuous feedback on system performance
- Strategic planning sessions to align your IT roadmap with business growth objectives
- Comprehensive training including cybersecurity awareness, Microsoft 365 efficiency, and AI training for your team
Our careful onboarding process means you can make the switch to professional managed IT services with confidence, knowing every detail has been planned and your business continuity is protected.
Conclusion
The choice between internal and managed IT support significantly impacts your business’s efficiency, security, and growth potential. While internal IT management might seem less expensive initially, the hidden costs – including downtime, inefficiencies, security risks, and opportunity costs – often make it more expensive than professional managed services.
At Bandicoot, we’ve seen firsthand how managed IT services transform businesses. Our clients gain access to comprehensive expertise, proactive support, predictable costs, and strategic guidance that most businesses cannot achieve internally. For the majority of SMEs, partnering with an experienced managed service provider like Bandicoot offers the best combination of value, expertise, and reliability.
We understand that choosing an IT partner is a significant decision. That’s why we’ve built our reputation on delivering exceptional service with our 3-ring guarantee, comprehensive security measures, and genuine commitment to our clients’ success. Our team has over 30 years of combined experience, and we’re proud to support over 200 businesses across Lancashire and the North West.
Your IT infrastructure is too important to leave to chance. With Bandicoot’s proven onboarding process, transparent service packages, and ongoing partnership approach, you can transform your IT operations with confidence, knowing your technology will support rather than hinder your business growth.
Ready to Explore Your Options?
If you’re considering managed IT services, we’ve created a comprehensive guide that delves deeper into the benefits of outsourcing your IT support. Download our free ebook: “The Hidden Costs of DIY IT: Why Outsourcing Makes Sense” to discover real-world case studies, cost comparisons, and practical guidance for making the transition.
At Bandicoot, we’ve helped hundreds of Lancashire businesses transform their IT operations through professional managed services. Our comprehensive support packages include proactive monitoring, strategic guidance, and the peace of mind that comes with our three-ring guarantee and data recovery promise.
Want to discuss how managed IT services could benefit your business? Contact us today for a free consultation. We’ll assess your current IT situation and show you how professional management can drive your business forward.
