In-house vs Outsourced: The IT Management Dilemma

This article was contributed by Electric, a trusted partner of Justworks.

In the early days of growing a business, IT is all about moving fast. Devices and software licenses are purchased as needed, accounts and passwords are shared among team members, and employees are on and offboarded on a case-by-case basis.  

But as your business scales, this approach begins to break down. What happens when ad hoc IT can no longer keep pace with your needs?

Some organizations continue to rely on a patchwork of quick fixes, hoping the next workaround will resolve legacy issues. Others turn to Managed Service Providers (MSPs), opting to hand off IT entirely. And an increasing number are adopting IT management platforms, seeking a self-serve solution that doesn’t demand IT expertise. 

Each option has its strengths and limitations — and choosing the right fit can have a lasting impact for your business.

Ad Hoc IT: Agile but High-Risk

Ad hoc IT is the starting point for most small businesses: one-off device purchases, manual on and offboarding, and spreadsheets to track tools, users, login credentials, and more. 

While this setup offers agility early on, it quickly becomes unsustainable at scale. DIY IT doesn’t just lead to inefficiencies, it becomes a security, compliance, and continuity risk. Devices go missing, former employees retain access to company accounts, and critical data becomes fragmented and unreliable.

As tech stacks expand without effective integration, non-technical departments like HR are often left to fill the gaps. People teams find themselves setting up devices, managing access permissions, and monitoring data security without adequate resources or expertise.

mBiota faced a similar challenge. Rapid growth outpaced their infrastructure, leading to delayed onboarding and offboarding, overpriced and overbuilt equipment, and 5–10 hours per week lost to troubleshooting email logins and chasing IT tickets.

Read the case study.

MSPs: Hands-Off but Restrictive

When ad hoc IT starts to break down, a Managed Service Provider (MSP) can feel like an easy fix. MSPs are third-party companies that remotely manage IT infrastructure for a recurring fee, typically covering network monitoring, cybersecurity, and help desk support. By outsourcing to an MSP, you gain professional oversight and access to technical skills, without the overhead of building an internal IT team. But for smaller organizations, this model comes with certain trade-offs. 

However, MSPs typically operate under rigid service agreements, with queue-based ticketing systems and hidden costs that climb as headcount increases. And with IT fully managed by an external team, you lose day-to-day visibility and control.

While MSPs may suit larger enterprises, they often lack the speed and adaptability that growing businesses need.

IT Management Platforms: Scalable and Self-Managed

IT management platforms are purpose-built for small businesses. These all-in-one solutions automate tasks like onboarding, offboarding, and application provisioning, while simplifying device procurement and management. Centralized dashboards also make it easier to enforce security policies and maintain compliance, without the need for in-house IT expertise.

When integrated with your HR system, IT management platforms eliminate manual processes and repetitive admin for People teams. For businesses that already have IT staff, these tools free up valuable time for strategic projects and technical innovation.

Compared to an MSP, self-managed IT platforms can deliver significant cost savings, with pricing models that scale with your team. Basic plans are often available for free, with fixed monthly fees for more advanced functionality. 

That said, this approach is slightly more hands-on than outsourcing to an MSP. While routine work is automated, your internal team will still need to initiate certain workflows and monitor status updates to maximize performance. 

Turn IT Management into a Strategic Advantage

Every small business reaches a tipping point where ad hoc IT begins to slow productivity and growth. MSPs can offer a hands-off alternative, but often at the expense of flexibility and control. IT management platforms bridge this gap with standardized processes, automated workflows, and enhanced visibility — without adding complexity. 

Ready to simplify your IT? Justworks integrates with Electric’s IT management platform so your business can reclaim valuable time, stay secure, and scale efficiently. Get in touch to learn more!