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Hidden Costs of Managing IT In-House

managed services providers (MSPs

As more companies rush to stay relevant in the digital world, they are beginning to adopt more new technologies and IT systems. The variety of new hardware and software requires enhanced technical expertise to operate and maintain, and this makes it more costly for companies to fully manage IT in-house. As such, more companies are enlisting the support of managed services providers (MSPs) who can help bolster their IT management while defraying their costs, optimising their resources, and allowing them to fully concentrate on their business goals.

The True Cost of an Employee

With IT talent now universally in high demand, employee costs such as wages, employer contribution, medical insurance, annual bonuses, and more compound with every technical hire that the company makes, making it exponentially more expensive to adopt new technologies.

Companies are paying 54 percent more in wages for technical roles and hiring specialists purely for just one or two systems risks underutilising their talents, which makes the hire cost-inefficient. Even if existing IT staff are expected to pick up new specialisations, they need to be sent for training to be certified, which still incurs expenses – especially since these certifications must be periodically renewed due to the fast pace of technology advancement.

Conversely, MSP teams are fully certified and are always up-to-date with recent technology trends due to the nature of their work. Thus, it is often more cost-efficient and productive to outsource IT management to MSP teams instead of hiring and training an in-house team from scratch.

Maintaining in-house Systems and Programs

Companies tend to build in-house IT teams to have complete control over their IT systems. However, this means that IT teams are solely responsible for purchasing, maintaining, and upgrading all the company’s hardware and software.

Besides increasing the total cost of ownership (TCO), the IT team also has to balance this full-time responsibility alongside other operational tasks, which can stretch them thin and run a higher risk of burnout as more technologies are introduced. If not properly managed, businesses can end up with patchwork and/or legacy systems that become inefficient over time, as well as overpaying for underused programs or services.

With the support of an MSP, in-house IT teams can offload more advanced or labor-intensive systems to them and focus on critical issues. The MSP can also ensure that companies are optimising their services and technologies to maximise their return on investment.

Potential Cybersecurity Vulnerabilities

Given the sizable costs of an organisational data breach – up to US$2.62 million in Southeast Asia alone – the increasing number of cyberattacks on ASEAN businesses is cause for concern. In a 2020 Kaspersky survey, ASEAN respondents most feared data loss and targeted attacks, as well as electronic data leakage from internal systems.

However, most in-house IT teams cannot comprehensively handle cybersecurity on their own, especially with their other existing duties. Not only do they have to constantly monitor systems for potential cyber threats within and without the organisation, but they also have to respond immediately to neutralise breaches or attacks and stay abreast of the latest developments in cybersecurity.  

Engaging an MSP can be a suitable alternative for companies looking to shore up their cybersecurity defenses. They can provide round-the-clock monitoring and rapid response upon threat detection, and will likely be more efficient in eliminating threats due to their expertise.

Managed Services Outsourcing for Greater Efficiency

With the global managed services market expected to hit US$274.2 billion by 2026, it is clear that more companies are realising the value of MSPs in supporting their IT team as they undergo digital transformation.

At Cloud Kinetics, a managed services providers we provide comprehensive, 24/7 cloud managed services that have helped many businesses use their resources more efficiently and stay more resilient in a digital era. Get in touch with us and let us do the heavy lifting for you.

At Cloud Kinetics, we believe the right digital strategy can give companies a competitive advantage and enhance the customer experience. That is where we have built our core expertise. As a certified MSP, we use cutting-edge platform-driven services to accelerate our clients' business transformation journeys. Get in touch with our Cloud Experts for a non-obligatory discussion at

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