When Should You Take IT In-House? A Guide for Growing Companies

As companies grow, so do their IT needs. Whether you’re a startup or an established business, knowing when to take IT in-house versus outsourcing is crucial. Having worked extensively on both sides of this issue, I’ve seen the challenges and benefits from both sides. In this post, I’ll break down when it makes sense to keep IT outsourced and when it might be time to bring some responsibilities in-house.

Small Companies (Up to 100 Employees): Keep IT Outsourced

For companies in the early stages or with fewer than 100 employees, outsourcing IT is often the most efficient and cost-effective approach. At this stage, it’s crucial to focus on growth, and having an internal IT team might seem unnecessary or too costly. Here’s why outsourcing makes sense:

1. Mature Support Processes: MSPs typically have well-established ticketing systems and support processes. While a single internal person might resort to the “DM me” approach, which could seem manageable at first, it can quickly spiral out of control. Without a formal system, there’s no way to audit or review requests, leaving your company vulnerable to unresolved issues or communication breakdowns.
2. Streamlined Device Management: A key benefit of working with an MSP is their ability to implement Mobile Device Management (MDM) tools. These tools are essential for ensuring that devices are secure, compliant, and easily manageable. Often overlooked in the early stages, implementing MDM later can become a burdensome task if left to a single, possibly inexperienced individual.
3. Strategic Partnership: It’s wise to have one internal person who owns the IT partnership and helps create a strategic roadmap. This person can act as the liaison between your company and the MSP, ensuring that your IT infrastructure grows with your business.
4. Comprehensive Expertise: Partnering with an MSP provides access to a diverse team of IT professionals with specialized skills. Unlike relying on a single “jack of all trades” hire, who may become a bottleneck or compromise security due to limited expertise, an MSP offers a full spectrum of experience. This team approach ensures that you have experts in various IT domains working together to build scalable solutions, implement robust security measures, and adapt to your company’s evolving needs. As your business grows, you’ll benefit from this collective knowledge without the overhead of hiring and training an entire in-house IT department.

Mid-Sized Companies (100-250 Employees): Hybrid Approach

As your company grows, so will your IT needs. When you reach the 100-250 employee range, it’s time to consider a hybrid approach:

1. IT Manager: At this stage, hiring a Director of IT becomes essential. This person should be focused on aligning IT with the company’s strategic goals and growth plans. They’ll also ensure that the infrastructure scales effectively.
2. Onsite Support: Depending on your company’s setup, having an onsite IT person can be beneficial for immediate support needs, such as network issues or other on-the-ground requirements. This allows your Director of IT to focus on larger projects and planning.
3. Outsourced Day-to-Day Support: For daily IT support, device management, and onboarding/offboarding, continuing to outsource to an MSP remains a smart choice. This allows your in-house IT team to concentrate on strategic initiatives rather than getting bogged down with routine tasks.

Large Companies (250+ Employees): Build an Internal IT Team

Once your company surpasses 250 employees, it’s time to build a comprehensive internal IT team. Here’s what to consider:

1. Director of IT/CTO: A Director of IT or CTO should lead the team, focusing on large-scale initiatives, security, and the company’s strategic IT roadmap.
2. In-House IT Support: Daily IT support should be managed internally by a dedicated team, as this allows for more customized support tailored to your company’s unique needs—something an MSP may not always be able to adapt to. An in-house team will also have a deeper understanding of your organization’s specific requirements.
3. Outsourcing Subject Matter Experts: Even with a robust internal team, certain specialized tasks may still be better outsourced. For example, if your company uses tools like Jamf for managing Macs or Okta for identity management, it might make sense to outsource the management of these tools to experts. These platforms often require ongoing training, certifications, and experience in managing large-scale infrastructures. By outsourcing these specific tasks, you can ensure that they are handled by professionals who are up-to-date with the latest best practices and technologies.

Conclusion

Deciding when and what type of IT tasks in-house is a critical decision for any growing company. For smaller businesses, outsourcing is often the best way to access expert support and mature processes without the overhead of a full-time IT team. As your company expands, a hybrid approach allows you to maintain flexibility while building strategic internal capabilities. For larger companies, an internal IT team becomes essential, with outsourcing reserved for highly specialized areas.

At Advisory, we’ve partnered with and grown alongside many different companies, and we’ve always been upfront about where it makes sense to use our services and where it may be better to bring specific tasks in-house. If you’re considering your current IT setup and would like to explore what makes the most sense for your business, let’s talk. We’re here to help you find the right balance to support your goals at every stage of growth.