Choosing Between Service Desk Outsourcing and In-House IT
Kalamazoo, MI | September 10, 2025
Service desk outsourcing, as a market, is projected to grow by 5% each year through 2034.
That means global revenue for service desks will grow from $92.97 billion to $151.44 billion.
But what’s creating all this demand for outsourced help desk services? Well, it all boils down to this: outsourced IT is providing better solutions at lower prices than in-house IT.
So, is service desk outsourcing right for you? Or is there a better solution?
Today, I’m teaching you:
The challenges SMBs face with in-house IT
How service desk outsourcing solves modern IT problems
When to choose in-house IT, outsourced IT, or both
The Challenges Facing In-House IT for SMBs
First off, I want to be clear about something: there are real benefits to in-house IT.
For companies that have the means to support it, in-house IT enables:
Constant on-site support
Cultural integration
Internal support on projects
Direct oversight
And those benefits are nothing to sneeze at. So, why wouldn’t a company always choose in-house IT?
Well, that brings us to the sticking point: for many SMBs, the challenges outweigh the benefits of in-house IT.
Specifically, there are three challenges that make in-house IT unsustainable: cost effectiveness, the great IT labor shortage, and complex personnel needs.
Challenge #1: Cost Effectiveness
Simply put, the benefits of in-house IT are usually only worth it if you have a lot of money to invest.
And when you think about it, it makes sense. “IT” isn’t just one job; it’s an entire field of different specialties. And SMBs need IT people who specialize in:
Cybersecurity
Data backup and disaster recovery
Hardware support
Software development
Niche, industry-specific software
While some IT workers will specialize in more than one of these areas, practically none will specialize in all of them.
On top of that, IT employees with more specialties will have to split their attention while expecting higher pay.
Basically, it’s tough to get full-service and in-IT without spending money that most SMBs don’t have.
IT Pro Tip: The 4% Rule It’s recommended that SMBs spend roughly 4% of their business revenue on IT. For most businesses, the sweet spot is between 2% and 7% of your annual revenue (depending on your industry and how complex your operation is).
Challenge #2: The IT Labor Shortage
So, let’s say you want in-house IT and have the right budget. Now, you face the second big challenge of in-house IT: finding people to do the job.
The truth is that there’s a significant labor shortage in IT. In fact, a staggering 93% of organizations are in the middle of an IT skills shortage.
And it’s not going anywhere. 55% of employers report that it’s challenging to find IT people with even just the necessary skills.
So that leaves companies with two options:
Hire someone underqualified and spend time and money to train them
Try to hire someone qualified despite the tremendous costs
But even then, I’m sorry to say it gets worse.
Once you have in-house IT, you still have to keep them.
Challenge #3: Complex Personnel Needs
Providing for your in-house IT personnel is a serious expense—and it never ends.
Because fields like AI and cybersecurity are evolving so fast, they require constant training. That means you’ll constantly be sinking money into new training for your IT employees.
Maintaining in-house IT means you’d need to address recurring problems like:
At the same time, you need to react to how the labor market changes. And with IT, that’s tough when:
Only 29% of IT and tech employees plan on staying with their current employer
57% of employers provide flexible work arrangements to IT talent
317,000 new computer and IT jobs will be added every year until 2034
How Service Desk Outsourcing Solves IT Problems
So, we know that in-house IT isn’t the most optimal solution for SMBs.
But that still leaves the question: why is service desk outsourcing any better?
Well, outsourcing your IT solves the biggest problem of all—labor.
Ultimately, the main issues with in-house IT stems from the difficulties involved in hiring and managing an IT employee. That’s why many SMBs choose to outsource their IT by working with a managed service provider (MSP).
MSPs have the knowledge and infrastructure to:
Manage IT personnel and set attainable KPIs
Train new IT employees to meet industry standards
Predict and adjust to changes in the labor market
Provide flexible working arrangements for employees
Reduce excess costs thanks to their large scale of operation
For these reasons, MSPs can provide full-service IT at a fraction of the in-house cost.
And for many SMBs, that’s just what the doctor ordered. Stable, reliable IT at a more affordable and reliable price.
When to Choose In-House, Outsourced, or Hybrid IT
Finally, we arrive at the most important question of all. Which IT solution should you choose:
In-House
Outsourced
Hybrid
The answer? Well, it depends.
In-House IT is best for organizations that have:
Large-scale infrastructure
High enough revenue to support the costs
Hyper-specific software and/or hardware needs
Must have on-site IT support available on-demand
Examples of In-House IT Candidates: Colleges, banks, government agencies, and hospitals.
Outsourced IT Services are best for organizations that have:
Small- to medium-scall infrastructure
Limited funds to pay the full salary + benefits of an IT team
Standardized IT needs, like cybersecurity and help desk support
Need 24/7 remote IT support and/or on-site visits
Examples of Outsourced IT Services Candidates: SMBs, non-profits, retailers, and professional services.
Hybrid IT Models combine both in-house and outsourced IT support services. These models are best for organizations that have:
Mid-size to large infrastructure with both complex and routine IT needs
Budgets intended for growth and scaling up to the next level
Some industry-specific IT compliance needs but many standardized it needs
Need 24/7 remote IT support and in-house IT leadership
Examples of Hybrid IT Model Candidates: Manufacturers, universities, regional businesses, and logistics companies.
Talk to a Pro About Service Desk Outsourcing
Not sure if service desk outsourcing is right for you? If so, we’d be happy to talk to you about whether it’s a good option for your organization.
