Insourcing vs. Outsourcing IT Services: What Is the Difference?

Did you know that small business owners pay anywhere from $10,000 to $49,000 per year on technology per year on average? Part of this money goes toward their IT services. That’s a large part of their business budget!

When you run a small business, you need to know where you can cut corners and where you should spend some extra cash. You might be considering outsourcing some of your IT services instead of insourcing.

We’re here to talk about insourcing vs. outsourcing IT services so you can decide which is right for you. Read on to learn more.

Insourcing IT Services

When a company insources its IT services, it means that they’re using staff who already work within the business to take care of IT tasks. It can also mean that the business brings in a new employee (or temporary employee) to take care of the tasks in-house instead of having someone take care of them externally.

Insourcing isn’t as popular as it once was, but it does come with several benefits.

First, when you insource, you know that the worker is spending all of their time and energy on your project and your business. You also have complete control over the services that they’re providing. This tends to lead to higher-quality services.

When you insource, you may promote more innovative thinking and collaboration because you’re inviting people to work directly with your company. This is difficult if you’re choosing to outsource instead.

While insourcing does allow you to avoid some common fees associated with outsourcing, it can also be more expensive in the long run. Hiring new employees, even on a temporary basis, is more expensive than paying a flat rate for outsourced services.

Outsourcing IT Services

Outsourcing is far more common in the business world in 2022. When you outsource, you reach outside of your company to find a person or team, like ferroquesystems.com, who you can work with to take care of your IT needs.

Many people outsource because it’s the more affordable option. You don’t have to pay anyone a salary or a standard hourly rate like you would an employee.

Outsourcing is efficient and it allows you to work with a whole team of professionals at a low cost.

With this in mind, outsourcing gives you less control over your IT needs, and there may be gaps in communication between you, your team, and the outsourced team.

Can You Do Both?

There’s no reason that you have to choose between insourcing and outsourcing. Many businesses have both in-house and outsourced team members who serve different purposes. This allows the business more flexibility and control.

If your insourced team is too busy with a large-scale project that requires a lot of time and collaboration, that’s the perfect opportunity to invest in an outsourced team for more menial IT tasks.

Insourcing vs. Outsourcing IT Services: Which Is Right for You?

When it comes to insourcing vs. outsourcing IT services, there are pros and cons of both! If you have the budget for it, we recommend combining these two options so you can have a well-rounded IT team.

For more helpful articles about the top trending topics, visit the rest of our site.