As technology continues to be a driving force behind businesses, having a solid in-house technical team is essential. However, as a tech leader, you know that you need to have the manpower and enough bandwidth to fulfill business needs, and quite often, the cruel reality is that you are always running on a tight budget, or worse, you are a one-man band. As an IT leader, you are also responsible for navigating these challenges and ensuring the right IT strategies are in place.
Ultimately, this will lead to arguably the most important and challenging decision: should we keep this in-house or outsource it? The decision making process involves carefully evaluating the benefits and drawbacks of outsourcing IT functions to an MSP versus maintaining internal resources. Understanding the differences between the complexities of internal IT management and MSP can help make a good decision. Let's start by understanding all aspects of MSP vs internal IT.
Understanding Managed Service Providers (MSPs)
Managed Service Providers (MSPs) are companies that outsource IT services to businesses. They offer various services to help businesses maintain or improve their IT infrastructure, security, and operations.
MSP services typically include system monitoring, network security, and proactive support, ensuring optimal system performance and security for businesses.MSPs usually aren’t the original developers of the solutions they sell, but they will have their own dedicated team of IT experts and the solutions to provide support. They are the Tech Jedis.
What services do MSPs typically offer?
While some MSPs specialize in certain outsourced IT services, like cybersecurity, others will provide a more comprehensive array of services and solutions, including cybersecurity services. They aren’t strictly limited to offering a specific software, service, or provider, which is why some Managed Service Providers can better match your company. Here are some of the services that MSPs offer:
- Network monitoring and management: Some MSPs monitor and manage clients’ networks to prevent potential problems and quickly resolve any issues that arise.
- Cybersecurity and data protection: MSPs that sell cybersecurity services employ various security measures and technologies to keep clients’ networks and data secure and protected from cyber threats.
- Cloud computing and storage: MSPs specialized in cloud computing or storage provide services related to cloud-based solutions, be it data storage or management.
- Help desk and end-user support: Some MSPs offer help desk and end-user support to relieve them of the need of having to deal with customers.
- IT consulting and project management: Due to MSPs having first-hand knowledge of a multitude of services and solutions, they can offer businesses new solutions and ideas that can help them achieve their goals.
- Device Management: Some MSPs offer device management services, keeping track of a business’ endpoints to locate them should they get lost and speed up on-boarding and off-boarding processes.
- Technical support: MSPs provide technical support to ensure effective IT infrastructure, prevent data breaches, and streamline IT services. This support can be crucial in deciding between hiring in-house IT staff or outsourcing to an MSP.
- Cutting-edge technology solutions: Many MSPs utilize cutting-edge technology to deliver advanced IT solutions, helping businesses stay competitive with the latest industry advancements.
MSPs also offer different pricing models, providing transparent and flexible billing structures to suit the unique needs of each business.
How MSPs can benefit businesses
As you can see, Managed Service Providers benefit businesses in various ways. In a sense, they are there to solve problems and outsource IT services to fit the needs of the organizations that hire them. These are some of the benefits that MSPs provide to businesses.
- Cost-effective solution: MSPs offer cost-effective solutions, which is why they’re usually sought after by small businesses as it saves them the costs of investing in their own IT infrastructure.
- Access to a wider range of expertise: MSPs provide access to a team of IT experts who have experience and expertise in various areas of IT management.
- Minimizes downtime and improves business continuity: Due to MSPs providing IT management, they minimize downtime and improve business continuity.
- Scalability to meet changing business needs: MSPs must adapt to the size of the company in that they’re offering their services, which is why they’re used to scaling their services to meet the changing needs of businesses as they grow and expand.
- Allows focus on strategic initiatives: By outsourcing IT management to MSPs, internal teams are freed up to focus on strategic initiatives that align with the company’s long-term goals.
Cons of hiring Managed Service Providers
Now that you have seen the pros of getting outsourced IT services, it’s time also to know the potential drawbacks of relying on them. You must understand that the problems of hiring an MSP vary according to how much you depend on them and the kinds of services they provide:
- Giving up control of your IT infrastructure: When you outsource your IT needs to a third-party provider, they will have a say in handling your IT infrastructure, which can impact the level of control you maintain, as mentioned earlier when discussing costs and management.
- Dependence on the MSP: If you rely on an MSP for your IT needs, it can be challenging to find a new provider should you encounter difficulties dealing with your current one.
- Communication challenges: Working with an MSP can present communication challenges, this might happen due to a lack of understanding about how your business works, or simply because they are located at a very different timezone.
- Security risks: Allowing a third-party provider to access your IT infrastructure, means that you will be exposed to the same breaches and cybersecurity risks that they suffer.
Benefits of MSPs for business continuity
Managed service providers play a pivotal role in safeguarding business continuity. By leveraging the specialized expertise of MSPs, organizations gain access to proactive support and scalable solutions that keep IT systems running smoothly. MSPs are equipped to monitor and maintain IT infrastructure around the clock, helping to prevent system failures before they disrupt operations.
This proactive approach not only minimizes downtime but also ensures that disaster recovery plans are in place, reducing the risk of data breaches and lost productivity during unexpected events. With predictable costs and a focus on core operations, businesses can trust that their IT environment is being effectively managed, allowing them to concentrate on growth and innovation while the MSP handles the complexities of disaster recovery and ongoing support.
Understanding a dedicated internal IT Team
An internal IT department is a group of professionals directly hired by a company to handle its IT infrastructure. They offer businesses more refined control over what is being done to their IT infrastructure and it also allows them to make personalized adjustments should they need them. Internal IT teams can provide tailored solutions that address the business's specific requirements and the company's unique needs.
The responsibilities of an IT team vary depending on the size of the organization that employs them, but they usually are in charge of the following tasks:
- Help desk support
- Device Provisioning
- Data management
- IT Strategy
- Network, software, and hardware management
- Cybersecurity
Having your own internal IT staff means having flexible experts that work closely with members of other teams.
Internal IT team structure
An internal IT team is structured to give organizations complete control over their IT infrastructure and day-to-day operations. This in-house team is made up of professionals who possess a deep understanding of the company’s unique needs, business goals, and internal processes. Their responsibilities range from maintaining computer systems and managing network security to providing technical support and implementing security measures tailored to the organization.
The advantage of having an internal IT team lies in the direct control and flexibility it offers—decisions can be made quickly, and solutions can be customized to fit the company’s specific requirements. However, internal teams may face challenges such as limited resources, difficulties in scaling up as the business grows, and the ongoing need to stay current with the latest technologies and security best practices.
How an internal IT team can benefit businesses
There are a lot of benefits to having your internal team of IT professionals, as they will have first-hand experience with your IT needs and will have a better understanding of your business goals. Here are some ways they benefit the organizations that employ them:
- Control and familiarity over IT infrastructure: In-house teams know how their infrastructure works, and probably had a hand in creating it from scratch. Because of this, they can make more refined decisions to fill their needs and troubleshoot potential problems.
- Direct control over IT procedures and data: Internal teams provide direct control over IT procedures and data, allowing for customized solutions and better overall performance.
- Communication and coordination: Internal IT professionals usually work closely with other departments and respond quickly to issues, making communication about objectives and the needs of the company faster and easier.
- Reduced security risks: Having an internal IT team can reduce exposure to cybersecurity risks. These teams can control who can access their systems and data and when, and also understand what cybersecurity measures they need. Internal IT teams are also better positioned to maintain maximum data security for sensitive information and ensure compliance with industry regulations such as HIPAA and PIPEDA.
Cons of having a dedicated internal IT Team
While having an in-house team of IT professionals is almost always a good thing, they have their own set of disadvantages:
- Higher costs: Businesses need to pay the salaries, benefits, training, and equipment of each IT professional, which can be a lot for small and medium-sized businesses. There are also hidden costs such as ongoing training, hardware upgrades, downtime, and inefficiencies, which can significantly impact the overall IT budget and make in-house solutions more expensive in the long run.
- Limited expertise: Even if an IT team knows its IT infrastructure very well, it might not know much about other technologies that have yet to be implemented.
- Staffing challenges: Finding and keeping qualified IT staff can be challenging for businesses. If an internal IT team is understaffed, it can lead to burnout and reduced productivity, frustrating for everyone involved.
- Limited scalability: Businesses that rely on an in-house team need to scale their staff should they grow or change, which implies spending resources on training new staff, or worse, overworking their current professionals.
- Lack of external perspective: Internal IT teams might be too busy with their responsibilities to keep up with the latest industry trends and practices. They can also have difficulties in having an objective or alternative view of their companies due to how close they are to them.
IT department responsibilities
The IT department is the backbone of an organization’s technology operations, responsible for a wide array of critical tasks. These include providing desk support to employees, maintaining and upgrading IT systems, and conducting network monitoring to ensure optimal performance and security. The IT department also plays a key role in adapting the organization’s IT infrastructure to new technologies and complying with industry regulations.
Strategic planning, budgeting, and decision-making are essential functions, ensuring that IT services not only support current business objectives but also position the company for future growth. By effectively managing the IT environment, the department helps drive innovation and maintain a secure, reliable foundation for all business activities.
Making the right decision
Deciding whether to hire a managed service provider or have an internal IT team is a big deal for any company, big or small. Businesses need to consider how each option supports their core business functions. Staying with an internal team means relying on a small team of knowledgeable but very busy professionals and having to deal with scalability issues should the company grow, while hiring an MSP means having access to scalable services but allowing third-party access to its IT.
- Internal IT teams can be more familiar with the company's specific needs and culture. Key features of internal IT include direct control, in-depth company knowledge, and immediate on-site support.
- MSPs offer a broader range of expertise and can provide 24/7 support. Key features of MSPs include scalability, access to specialized skills, and proactive monitoring.
- Businesses should focus on their core operations and determine which option allows them to do so more effectively.
How to weigh the pros and cons to determine the best option for your business
Let’s have a look at the key aspects that businesses have to consider before deciding to rely on their own internal IT team or hiring a Managed Service Provider:
- Business needs: It’s essential to identify the specific IT management needs of your business or organization, including its goals, budget, and human resources. Smaller businesses with limited resources and smaller budgets may get more from an MSP, while businesses with more resources might get more from having an internal IT team.
- Expertise: The expertise needed to run the IT infrastructure of a company is another factor to consider. While your IT team might know enough to run your existing system, they might not have enough knowledge of solutions that it will require in the future. It is important to choose a solution that can effectively manage your company's IT needs, especially when dealing with industry-specific requirements and regulations.
- Control and flexibility: A business that values control and flexibility over its IT infrastructure may prefer an internal IT team. In contrast, businesses that prefer to outsource their IT needs, do not have enough IT professionals and focus on core operations, may benefit more from an MSP.
- Security: Security is critical for any business, and the level of security required will vary depending on the industry and the business’s specific needs. An internal IT team may provide more customized security measures, while an MSP may provide more advanced security solutions.
- Budget: The cost of IT services can vary widely between an internal IT team and an MSP. It’s important to weigh the costs against the benefits of each option and choose the solution that best fits the business’s budget and overall needs.
Hybrid model: the third path
Now, there’s a third option that has the best of both worlds: Having both an internal IT team and a managed service provider. By working together, they can complement each other’s strengths and weaknesses, providing a well-rounded approach to IT management.
An internal IT team can provide a better understanding of the business, more control over IT infrastructure, and a familiar face for employees, and even MSPs, to turn to when they need help. An MSP can offer specialized expertise, cost-effective solutions, and scalability to meet the growing needs of the business, and can train internal IT members to work and troubleshoot the solutions.
The best IT strategy is the one that works for you
At the end of the day, the debate between internal IT vs. MSP isn’t about which one is universally better—it’s about which one better supports your business goals, budget, and operational bandwidth. Whether you're a growing startup, a lean IT team juggling a dozen priorities, or a large enterprise scaling rapidly, your ideal IT strategy should balance control, expertise, cost, and flexibility.
For many companies, the right answer lies in a hybrid model—one where internal teams manage day-to-day priorities while a trusted MSP handles specialized tasks, proactive monitoring, and scalable solutions. This approach blends familiarity and control with agility and deep technical support.
And that’s where Prey can help.
If you're an MSP looking for reliable remote device management and data protection tools—or an internal IT leader seeking to automate and scale endpoint security—Prey offers cross-platform device tracking, secure remote wiping, and real-time monitoring tools that integrate seamlessly into your IT stack. Our solutions help MSPs strengthen their service offerings and support IT teams with enterprise-grade visibility and control—without adding extra complexity.
Because whether you're managing 10 devices or 10,000, it’s not just about having IT resources—it’s about having the right tools and the right support to use them well.
