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MSP vs. Internal IT: Which is Better for Your Business?

Technology is the backbone of modern business. That makes the IT department one of the most important parts of a company. However, these important functions don’t need to be handled internally. Managed Service Providers (MSPs) are a smart choice for various business IT needs. At Altek, we have a deep understanding of the network and security needs within an organization. In this article, we’ll compare the use of an MSP versus having an internal IT department.

The old method of fixing an IT problem is a costly risk. Consider the differences in the models:

Understanding Managed Service Providers (MSPs)

Let’s start by providing a better overview of what a managed service provider is. MSPs are outsourced IT services. They have services that can accommodate both large and small businesses and allow the business to focus on its core competencies rather than worry about building and maintaining its IT infrastructure.

MSPs offer flexibility to businesses, providing services tailored to the needs of the business. Whether it’s full-scale IT management or support in specific targeted areas, MSPs can provide businesses with the tools they need to succeed. Best of all, the extent of services provided by the MSP can easily scale up or down as the needs of the business change.

An important side effect of this flexibility and scalability is cost-effectiveness. At any given point, a business is only paying for the services that they’re using. In addition to always having a perfectly sized IT staff, MSPs allow businesses to avoid the capital investment of an in-house IT department. There’s no need to hire long-term employees or pay for training to keep those employees up-to-date on the latest technological advancements.

Another benefit of this type of flexibility is that it gives businesses access to specialized expertise plus remote or onsite resources when needed without having to pay for them when they don’t. IT services are the core competency of MSPs, so they’re always equipped with cutting-edge expertise and technologies.

Cons of Having a Dedicated Internal IT Team

We’ve shown you some of the great benefits your business can get from hiring an MSP. Let us now focus a bit on some of the downsides of maintaining your own internal IT team.

High Costs

Maintaining an internal IT team involved significant overhead. Salaries, benefits, training, and technology in the field are all expensive.

Limited Resources

Small to medium-sized businesses often don’t have the resources to hire a full-scale IT department, limiting what they’re capable of.

Lack of Scalability

Scaling to meet business growth can be slow and costly. Worse, if business slows, downscaling requires you to spend needlessly or lay off your staff.

Focus Diversion

Managing an internal IT team can divert focus and resources away from core business activities, especially in non-tech industries.

Rapid Technological Changes

Technology advances quickly and it’s easy to fall behind and put your business at a disadvantage without continuous (and expensive) training and development.

Staffing Challenges

Many areas of IT are competitive job markets. This makes it harder to attract and retain qualified staff members.

Compliance and Security Risks

There are many regulations around data privacy and cybersecurity. Keeping up with these regulations and staying ahead of threats can be challenging.


90% of data breaches are human errors

Making the Right Decision

When it comes to MSP vs. internal IT, the best decision depends on your specific needs, size, and long-term goals. For businesses who have decided that the expense and complexity of doing internal IT correctly is too much for them, Altek Business Systems has a comprehensive set of services that can step into that role. Our staff are experts in cutting-edge IT services that can give your business the resources it needs to stay ahead of the competition. To learn more about how we can help your business, schedule a consultation today.