In-House IT vs. Managed IT Services: A Comparison for Nonprofits

Written By: Dan Hernandez

1. Understanding In-House IT and Managed IT Services

person working in front of two computers

In an era where information technology is central to every business, including nonprofits, it’s crucial to have a strong IT infrastructure. Yet, it can be confusing to choose between in-house IT and managed IT services. Both have their merits, but which is the best fit for your organization?

In-house IT refers to having an IT department or a technician within your organization. They handle your day-to-day technology needs, from fixing issues to upgrading systems.

On the other hand, Managed IT services involve outsourcing your IT needs to a third-party managed service provider (MSP). These service providers specialize in various IT services and can support your organization's IT infrastructure.

2. Benefits and Drawbacks of In-House IT

Choosing an in-house IT team is like having a support team right within your office. The benefits of having an in-house team include:

  1. Quick response: Your in-house staff can quickly respond to issues as they arise, minimizing downtime.

  2. Business familiarity: Your in-house team understands your specific business goals, needs, and the unique nature of your IT infrastructure.

  3. Direct control: With an in-house team, you have full control over your IT strategy and personnel.

However, the in-house approach isn't without its challenges:

  1. Cost: Hiring full-time IT staff can be expensive, especially for small businesses and nonprofits. In addition to salaries, there are additional costs like benefits, training, vacation days, and sick leave.

  2. Limited resources: An in-house IT technician or even a small team may not be able to provide the range of services that a managed service provider can offer.

  3. Lack of round-the-clock support: Unless you hire a sizeable team, it can be challenging to provide after-hours IT support with an in-house team.

3. Advantages and Disadvantages of Managed IT Services

Managed IT services offer a host of advantages for nonprofits, particularly for those who can't afford a full-fledged in-house IT team. These include:

  1. Cost-effectiveness: Managed IT services often operate on a monthly fee, which can be more affordable than maintaining an in-house team. Plus, MSPs can scale services according to your needs, preventing unnecessary costs.

  2. Broad expertise: MSPs have experienced teams with a wide array of technical expertise. They can manage everything from network security to disaster recovery and even offer advice on how to make your business better.

  3. 24/7 support: Managed service providers offer round-the-clock support. They also provide proactive maintenance to prevent issues before they impact your organization.

However, there are a few cons:

  1. Less control: Since your IT is managed by a third party, you may have less control over your IT strategy.

  2. Dependence on the provider: If issues arise with your MSP, it could impact your IT services. Hence, due diligence is essential when selecting an MSP.

4. In-House IT vs Managed IT Services: Which is Best for Your Nonprofit?

When comparing in-house IT vs managed services, it's important to align the solution with your specific needs and goals. If you have a high level of IT demand and a sufficient budget, an in-house team could be the right fit for your company. However, if you're a small or medium-sized nonprofit, partnering with a managed service provider may be more cost-effective and efficient.

Managed IT services are particularly advantageous for nonprofits for a few reasons. First, outsourcing IT allows the organization to focus on its core mission. Second, managed IT providers can offer specific services tailored to nonprofits, helping them navigate unique challenges. Lastly, MSPs offer a dependable lifeline to cutting-edge technology and IT strategies without the burden of building an internal IT department.

To make your choice easier, this comprehensive guide outlines how to pick the right MSP for your business.

5. Conclusion

Deciding between in-house IT and managed IT services isn't a one-size-fits-all choice. Every business is unique, and so are its IT needs. A thoughtful assessment of your organization's specific needs, resources, and goals will guide you to the right decision. Remember, the goal is to find a partner that can protect your data, improve productivity, and ultimately enable your success.

6. FAQs

  1. What's the difference between in-house IT and managed IT services?

    • In-house IT involves maintaining an internal IT team, while managed IT services mean outsourcing IT needs to a third-party company.

  2. What are the benefits of managed IT services for a nonprofit?

    • Managed IT services can provide specialized services, round-the-clock support, cost-effectiveness, and enable nonprofits to focus on their core mission.

  3. Can a small nonprofit afford to have an in-house IT team?

    • The affordability of an in-house IT team depends on the specific business circumstances. However, for many small nonprofits, managed IT services may provide a more cost-effective solution.

  4. What factors should I consider when choosing between in-house IT and managed IT services?

    • Consider factors such as your IT needs, budget, the level of control you want over your IT strategy, the expertise you require, and the need for round-the-clock support.

  5. Can a managed service provider support my organization's network security?

    • Yes, many MSPs specialize in network security and can help protect your organization from breaches and other security threats.


PCS is a world-class leader in protecting data & identity for businesses and non-profits. We provide a critical service to businesses and non-profits by managing cybersecurity risks, including ransomware, crypto walkers, phishing emails, and other evolving cyber crimes. See how IT services can benefit your company.

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