Outsourcing IT vs hiring in-house: How UK SMEs should decide
As your business scales over time, you may find that you have a series of decisions to make about how you will manage the challenges and opportunities this growth creates.
One area you’re likely to see change relates to the technologies you will potentially need to integrate for operational expansion. You may have more employees, devices, locations and systems to support, while cybersecurity and compliance requirements can also become more complex.
As a result, you could be considering whether it’s time to hire an in-house employee, outsource to a
managed IT service provider, or use a combination of these two options.
It’s good to know you’re not alone with this decision. The UK IT outsourcing market was worth around
GBP 25bn in 2025 and is forecast to grow at 6.49% CAGR to 2034, reflecting how UK organisations are securing their systems with expert professional guidance.
The question you could be asking yourself is: should I outsource my IT or hire in-house? There isn't one right answer. The best model depends on the level of support you need, the expertise you already have internally, your budget and how quickly your requirements are changing
In this article, we explore some of the practical areas that can support you in making your decision.
Learn more in our article:
What is managed IT support: a plain English guide for UK businesses
Outsourcing or hiring in-house: 5 key areas to evaluate
Truth be told, there isn’t just one right answer for every UK SME. You know your business best and making a decision will undoubtedly be based on the level of support you need or how quickly you’re predicting operational expansion.
Here are five important areas that many UK businesses feel are relevant to this decision.
1. Cost formation
Hiring an in-house person who becomes familiar with systems and can provide regular support could be beneficial. However, the cost of this employment could be more than you first calculated.
With a permanent employee, you’ll need to consider recruitment, training and ongoing professional development costs, alongside additional equipment and software purchases.
Keeping up to date with technological and cyber security developments could also be expensive as these areas are currently evolving at pace and in complexity. For many UK businesses, this could result in a level of cost that isn’t sustainable over time.
In contrast, a managed IT support provider can give you access to a broader team for a predictable recurring cost, depending on the services, users and systems included.
2. Skill range
Modern IT can span user support, networks, cloud services, Microsoft 365, cybersecurity, backups, infrastructure and compliance. It can be challenging to find one person who has in-depth experience in every relevant area for your business.
With a managed IT service provider, there’s typically support from a team of experienced professionals. This team should bring different areas of technical expertise rather than relying on one individual's knowledge, so they can oversee your needs as technology requirements change.
So, if you suddenly have an IT problem you’ve never encountered before, there is a greater chance that someone within a managed IT support team has encountered a similar issue or has specialist knowledge in that area.
3. Scalability
Organisations deal with change in some form every day. You may open different business locations or introduce new systems which result in modifying IT needs. Hiring additional employees to oversee all of this may support growth but could also increase employment costs.
With an outsourced provider, support can be scaled and scaffolded around your requirements, helping you secure necessary expertise and project resources when you need them.
4. Holiday and sickness cover
An employee is unlikely to be able to provide continual IT support cover as holidays or periods of absence will occur at some point. This could leave your business with gaps in IT support and a vulnerability if something goes wrong with an IT system.
A managed IT provider can offer greater continuity because support does not depend on one individual being available.
5. Control
Outsourcing doesn’t mean you’re giving up control over your IT infrastructure. Partnering with a professional and well-recommended provider will help you understand your systems while providing clarity around responsibility through your Service Level Agreement (SLA) with them.
A clear agreement should define responsibilities, supported services, access, escalation routes and service levels.
Browse more information in our article:
Is outsourcing IT cheaper than an in-house team? The real numbers
A third option? Co-managed IT support
An alternative to consider is co-managed IT support. This is where a managed IT support provider works with an internal employee or team to look after the oversight and maintenance of your IT systems.
This could work in a number of different ways. For example, an internal IT person might handle day-to-day user support and internal projects, while the MSP provides monitoring, cybersecurity, specialist engineering, holiday cover or additional project resources.
Or alternatively, the MSP may handle day-to-day support while the internal IT lead focuses on strategy, applications and projects specific to the organisation.
Should I outsource my IT or hire in-house?
Naturally, you’ll make the decisions you need about your own business. For many UK SMEs, outsourcing IT can provide a more practical way to access the support, expertise and continuity they need.
A managed IT provider can give your business access to a wider range of specialist expertise and IT coverage without the cost and complexity of building a larger internal team.
It can also reduce reliance on one individual for technical knowledge, holiday and sickness cover, plus support with more specialist or complex IT requirements.
One of the most important areas in making a well-informed decision is typically the ability to choose an IT model that delivers the right level of support when you need it while enabling your technology tools to develop as you grow.
Talk through the right model for your business with Integrity
Whatever stage of development your business is in, we’re here to help with
IT support.
Talk to our friendly team of experts and see how we can support your current IT setup, create additional support requirements and explore an approach that precision-fits your business.













