Outsourced IT Support vs In-House: Which Is Cheaper for UK SMEs?

In the past, most SMEs assumed that hiring in-house IT support was not only the right thing to do, but also the cheapest. In theory, they spend all their time focused on your business and its IT needs; however, in recent years, business owners have begun to see the benefits of outsourced IT support.

While on the surface, someone dedicated solely to your business sounds great. But some restrictions limit what they can do for your business, as well as the financial implications that are unavoidable. This isn’t to say there isn’t a scenario where they are the best solution. Join us in this blog as we outline whether outsourced IT support is better than hiring in-house.

What Is Outsourced IT Support?

Put simply, outsourced IT support refers to a business seeking help from an external provider to manage its IT systems. The external IT provider takes care of the day-to-day support, maintenance, security, and strategic planning that go into supporting a business and its IT systems.

SMEs typically outsource their IT support as they cannot justify a full internal IT team. For businesses that run on Microsoft 365 and similar cloud services, expert IT support is crucial not only to maximise your systems but also to keep them up and running.

Is Outsourced IT Support Cheaper Than Hiring In-House?

In most SME scenarios, outsourcing your IT support to an external provider not only works out cheaper, but is also more practical for businesses of this size. The financial commitment to hiring an in-house IT specialist can be quite the burden for small businesses, so outsourcing IT support to specialists on a contract basis may relieve some pressure.

In-house costs include salary, national insurance, pension and costs associated with hiring, recruitment and more. On top of this, you have to cover sick days and holidays. These are just the costs visible on the surface. One that often goes unnoticed is the cost to license the tools needed to carry out the work, usually covered by the outsourced IT specialist.

Outsourced IT support costs are predictable and remain the same month-on-month, unless stated. 

When Outsourced IT Support Is the Better Option

Outsourcing your IT support is a better option for a number of businesses. At the end of the day, it comes down to how suitable it is for your business and the stage it is at. You should opt for outsourcing your IT support over hiring in-house if:

• Your business has a small or mid-sized team and does not need a full-time IT person every day.
  
• You want predictable monthly costs.
  
• You need access to a broader range of expertise than one internal hire can provide.
  
• You are growing and need support that can scale.
  
• You need support with security, cloud, backups, or compliance.
  
• You want to avoid recruitment risk and single-person dependency.

When In-House IT Support Makes More Sense

In-house IT support makes a lot of sense for a range of businesses, but they all tend to have things about their operation in common. They tend to be larger organisations with more complex needs that require frequent visits and monitoring. In-house IT support should be chosen over outsourcing if:

• You need frequent on-site support throughout the day.
  
• Your business relies on complex, heavily customised, or business-critical internal systems.
  
• You want someone embedded in the company who understands internal processes in depth.
  
• IT is becoming a strategic internal function rather than mainly an operational support need.
  
• You need immediate internal availability that a third-party SLA may not always match.
  

For Many SMEs, a Hybrid Model Works Best

For growing SMEs, ones looking to expand or rely heavily on their IT systems, a hybrid approach works well. Some businesses benefit from outsourced IT support that can be implemented by an operations lead or technical coordinator.

The combination of expertise and ability to speed up application means your business can benefit from the expertise of others, while taking full ownership of your IT systems. Ideally, the hybrid approach is most suited to companies that are growing but not yet ready for a full internal IT department.

How to Choose the Right IT Support Model for Your Business

Before you decide which IT support model is best for your business and its future, it helps to assess not just cost, but the level of support, expertise and flexibility to effectively manage your IT systems. Ask yourself the following questions before you settle on one model over the other:

• How many users, devices, and sites do you support?
  
• How often do staff need hands-on or on-site help?
  
• Do you need specialist support in cybersecurity, cloud, or compliance?
  
• Is your current IT workload consistent enough to justify an internal hire?
  
• Do you value broader expertise or embedded day-to-day presence more?
  
• What level of contract flexibility and cost predictability do you need?

Conclusion: Is Outsourced IT Support Right for You?

Ultimately, if you’re deciding between in-house or outsourced IT support, the biggest factor has to be how suitable it is for your business goals and budget. Outsourced IT support is often the most cost-effective option for SMEs, but it isn’t always the most suitable option. For those on the fence, consider a hybrid model, with a view to settling on one option in the future. 

If your business requires outsourced IT support from the experts, get in touch with the team here at VCI Systems. We have been supporting businesses of all sizes across Berkshire and the UK as a whole for over 25 years. 

FAQs

Discover some of the most commonly asked questions regarding outsourced IT support versus in-house hiring.

What Is Outsourced IT Support?

Outsourced IT support is when a business enlists the help of an external provider to manage its IT systems and needs.

Is Outsourced IT Support Cheaper Than Hiring In-House?

Outsourced IT support is often cheaper than hiring in-house for SMEs. This is due to lower staffing overheads and broader access to skills.

What Does Outsourced IT Support Usually Include?

Outsourced IT support includes a range of tasks and jobs, including: helpdesk, monitoring, patching, cybersecurity, backups, Microsoft 365, cloud support, and strategic advice.

When Should A Business Hire In-House IT Instead?

In-house IT support is required when frequent onsite visits are necessary, or your business requires embedded support to aid rapid growth.

Can a Business Use Both Outsourced and In-House IT Support?

Yes, some businesses use both outsourced and in-house IT support. The hybrid model suits growing SMEs with the ambition to grow into a large organisation.