In-house IT specialist or outsourced IT partner

For most small and medium-sized businesses, an outsourced IT partner is the more practical choice than a single in-house IT specialist: for lower or comparable costs you get the competence of an entire team, cover during holidays and sick leave, and the option of support beyond office hours. An in-house specialist makes more sense when a company runs many unique, business-specific systems that require constant on-site presence. Increasingly, companies choose a third path — a hybrid model in which an internal employee and an external partner share the responsibilities. The hybrid model is also the most useful option for large companies that already employ a number of in-house IT staff.

This question usually arises at two moments: when a company grows and IT issues can no longer be handled by the colleague who happens to be good with computers, or when a long-serving IT administrator leaves and it becomes clear just how much knowledge was stored in one person’s head. In both cases the decision deserves to be made on real costs and risks rather than habit.

Below is an honest comparison of both options — including the situations where an in-house specialist is the better choice.

In-house IT specialist or outsourced IT partner

The table compares the key criteria worth weighing before you decide.

Criterion In-house IT specialist Outsourced IT partner
Cost Full salary with taxes, the full cost of the workplace, tools and training — regardless of the actual workload You pay for an agreed scope; outsourced IT support can cost 2–3 times less than an in-house team
Breadth of competence One person cannot be equally strong in networks, servers, security and cloud; an honest comparison would mean employing several in-house specialists — or admitting to yourself that some important work is simply not being done A team of specialists across disciplines — from workplaces to servers and cybersecurity, as needed
Cover during holidays and sick leave None — when the specialist is away, IT is left unattended or emergency help must be bought in Guaranteed by the team — the service does not stop because one person is absent
24×7 capability Practically impossible with one employee — round-the-clock duty would require several positions, realistically 4–5 FTE Can be arranged as needed, because a team and automated monitoring do the work
Tooling Monitoring, management and security tools are bought and administered by the company itself, according to its own understanding and size Professional tools and automated monitoring are included in the service
Scalability Growth means hiring additional people — a slow and expensive process; and when the company shrinks, scaling an in-house employee down is difficult Scope adjusts automatically — the service grows or shrinks together with the company, as its needs change

What an in-house IT specialist really costs

The most common mistake in cost comparisons is looking only at the take-home salary. The full cost structure of an in-house specialist is considerably broader:

  • Salary and employer taxes — the full cost of an employment position is always higher than the amount the employee sees on the payslip.
  • Workplace and tools — an office, a car, health insurance, a computer, plus the monitoring, remote-management and security software and licences that professional IT support requires.
  • Training and certifications — IT changes constantly; without regular training a specialist’s knowledge goes stale and they keep working with the older technologies they already know, while training costs money, working time and new additional tools.
  • Absence cover — holidays, sick leave, training days. Over a year this adds up to a significant period when the IT estate is either unattended, extra help has to be purchased, or the company lives with the disruptions that happen while the employee is away and postpones the work, slowing the business down.
  • Recruitment and turnover — hiring IT specialists takes time, and when an employee leaves, the company loses both the person and the undocumented knowledge of its infrastructure, which can mean substantial risks and costs for the business.

Once all of these components are added up, it becomes clear why outsourced IT support, compared on a like-for-like basis, can cost 2–3 times less than an in-house team. Which factors shape the price of outsourced support and how service packages are structured is covered in detail on our page about how much IT support costs for a company.

When an in-house IT specialist is still the better choice

It would be dishonest to claim that an outsourced partner fits every case. An in-house specialist — or a full internal team — pays off when:

  • the company runs many unique, internally developed systems whose support requires deep context and constant involvement in internal processes;
  • the nature of the business demands a person physically on site at all times — for example, manufacturing with specialised equipment;
  • IT is the company’s core business and the technology team builds the product itself rather than maintaining infrastructure;
  • the organisation is large enough for an internal team to include specialists across disciplines and provide absence cover on its own.

Even in these cases, however, certain functions — IT support in full or in part, server monitoring, cybersecurity or cloud administration — are often handed to an external partner, because covering them with an internal employee is inefficient.

The hybrid model: internal employee and external partner together

More and more companies choose not either–or but both. In a hybrid model the internal specialist remains responsible for day-to-day on-site user support, business-specific systems and internal context, while the external partner takes over what one person objectively cannot cover:

  • server and infrastructure maintenance with continuous automated monitoring;
  • cybersecurity and compliance requirements;
  • larger projects — migrations, deployments, infrastructure redesigns;
  • standing in for the internal specialist during holidays or sick leave, so IT support never stops.

This model also reduces the risk of all knowledge about the company’s IT estate accumulating in one head: the infrastructure is documented, every request is logged transparently in the service desk with its SLA measured, and critical competencies are shared between the internal and external teams.

An external IT manager — the competence an in-house specialist cannot replace

One function deserves separate mention, because most companies cannot expect it from a single in-house specialist: that of an IT manager. An IT administrator or IT engineer solves daily problems but rarely has the time or experience to answer strategic questions — how to plan the IT budget, when to renew infrastructure, what to move to the cloud and which cloud to choose, how to manage third-party vendors, which security risks to prioritise and how to address them.

When working with Altic IT, every client is assigned an experienced external IT manager — unlike many other providers, where the client deals with an account manager acting as a go-between, relaying questions to the various specialists inside the provider’s own company. The IT manager adds broad strategic competence covering both IT development and IT support, competence that most companies simply cannot justify hiring as a separate position. The IT estate is managed according to ITSM, ITIL and COBIT best practices, and clients receive regular reports on the state of their IT. You can see how this model works in practice in our success stories.

If you are considering an external partner, it is worth knowing the criteria to compare them by before you choose — we cover this on the page about how to choose an IT support company, and the contractual side is worth assessing against our guide to what an IT support contract must include.

Why Altic IT

Altic IT specialises in exactly these models — from fully outsourced IT support to hybrid cooperation with the client’s internal team:

  • 180+ clients served, ~3,500 computers and mobile devices and ~350 servers under management;
  • the majority of the team are experienced senior-level IT specialists;
  • within the first 3 months, client incident volumes are reduced by up to 5 times;
  • ISO 27001, ISO 20000 and ISO 14001 certifications;
  • professional liability and cyber risk insurance of EUR 2 million;
  • Microsoft Solutions Partner for Data & AI and Sophos Gold Partner statuses;
  • the vast majority of clients come through referrals, and contracts are open-ended — we stay together for as long as you are happy.

Frequently asked questions

  • Can an outsourced partner fully replace an in-house IT specialist?

    In most small and medium-sized businesses — yes. The outsourced partner takes over workplace support, server administration, security and user assistance, while a dedicated IT manager acts as a single point of contact for every question. If certain functions need to stay in-house, a hybrid model is applied. In large companies that already have their own IT manager, the hybrid model adds an external IT manager as a colleague, whose broad competence complements their experience and helps identify further solutions that benefit the business.

  • Why can outsourced IT support cost less than an in-house employee?

    The cost of an in-house specialist includes not only salary but also taxes, the full cost of the workplace (office, car and so on), tools, training and absence cover, even though there is often not enough real IT work for a full-time position. An outsourced partner shares the same resources and tools across many clients, which is why outsourced IT support can cost 2–3 times less than an in-house team while at the same time broadening the competence available.

  • What happens when an in-house IT specialist goes on holiday or falls ill?

    If the company relies on one person, the IT estate is left unattended for that period and incidents or changes wait for their return, which hampers and slows down the business. With an outsourced partner the service is delivered by a team, so one person’s absence does not stop it. In a hybrid model the partner can also stand in for the client’s internal specialist.

  • Can we keep our own IT employee and still use outsourced support?

    Yes, this is the standard hybrid model. The internal employee remains responsible for day-to-day on-site help and business-specific systems, while the external partner takes over the other systems, servers, security, monitoring and larger projects. The boundaries of responsibility are clearly defined in the contract.

  • Where should we start if we are considering a move to outsourced IT support?

    Start by assessing your current situation: what tasks your in-house specialist performs today, what that costs in full, where the biggest risks lie, and what is not being done at all for lack of time or competence. Then compare those costs with an outsourced support proposal. A like-for-like comparison should also include what it would cost you to close those risks and competence gaps on your own — additional IT staff or additional partners. Altic IT prepares such a comparison based on your company’s specific situation.

Compare your costs with outsourced IT support

Would you like to know what outsourced IT support would cost your company compared with maintaining an in-house specialist? Contact Altic IT — we will prepare a comparison based on your number of workplaces, your infrastructure and your needs. Write to us via the contact page or call +370 5 2032018.

Contact Altic IT

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