<img height="1" width="1" style="display:none;" alt="" src="https://dc.ads.linkedin.com/collect/?pid=426345&amp;fmt=gif%20https://dc.ads.linkedin.com/collect/?pid=426345&amp;fmt=gif">
Skip to main content

«  View All Posts

Top Pros and Cons of Managed IT Services for Small Businesses

July 13th, 2023 | 4 min. read

By Marissa Olson


As you’ve probably experienced, small businesses face numerous challenges when it comes to managing their IT infrastructure effectively. To address this, many small businesses are turning to managed IT services, which provide outsourced IT support and maintenance.  
This article explores the pros and cons of managed IT services for small businesses, highlighting the benefits and potential drawbacks.

Managed IT Services For Your SMB: Determining Factors

Outsourcing your technology through managed IT services is a big commitment—and probably seems a bit overwhelming. But we’ve got some good news for you! You’ve come to the right spot!

Below is a breakdown of the pros and cons of managed IT services for your small business so you can better understand how this type of outsourcing can affect your organization and employees.

Pros of Managed IT Services for Small Businesses

Cost Savings For Your Organization

One significant and most notable advantage of managed IT services for small businesses is cost savings. That’s right; you can actually save money by utilizing managed IT services!

By outsourcing IT operations to a managed service provider (MSP), small businesses can eliminate the need for hiring and training in-house IT staff.

Managed IT services typically operate on a subscription or pay-as-you-go model, enabling small businesses to have predictable monthly expenses, avoiding large upfront investments in infrastructure and personnel.

Related Article: How Can I Afford Managed IT Services?

Great Access to Expertise

A well-qualified and experienced managed IT services provider specializing in IT infrastructure management, offering small businesses access to a highly skilled and experienced team.

These professionals are current with the latest technological advancements and industry best practices. By leveraging their expertise, small businesses can benefit from improved system reliability, enhanced security measures, and efficient problem resolution.

Scalability and Flexibility

Small businesses often experience fluctuations in their IT requirements as they grow or face seasonal demand variations.

Managed IT services provide the flexibility to scale up or down IT resources based on business needs. This scalability ensures that small businesses have the necessary IT infrastructure and support to meet changing demands without incurring additional costs or disruptions.

Enhanced Security

If data security isn’t at the top of your priority list, now is the time! Cybersecurity threats pose a significant risk to small businesses with limited resources to combat sophisticated attacks.

A great managed IT services team implements robust security measures, including firewalls, intrusion detection systems, and regular security audits, to safeguard small businesses' data and systems.

Additionally, they can offer proactive threat monitoring, rapid incident response, and data backup and recovery services, ensuring business continuity in the face of security breaches or data loss.

Focuses on Core Business Activities

Managing IT infrastructure internally can be time-consuming and divert resources from core business activities. Outsourcing IT operations to a managed service provider allows small businesses to free up their time and focus on strategic initiatives, customer acquisition, and revenue generation.

This increased focus on core competencies can contribute to business growth and competitiveness in the market.New call-to-action

Cons of Managed IT Services for Small Businesses

Dependency on Third-Party Provider

Outsourcing IT services means relying on a third-party provider for critical aspects of business operations. Small businesses may face challenges if the managed IT service provider fails to meet service-level agreements or experiences downtime.

This dependence introduces an element of risk, making it crucial for small businesses to carefully evaluate the reliability and reputation of potential managed service providers.

Loss of Control

By outsourcing IT services, small businesses relinquish a degree of control over their IT infrastructure. Decision-making processes, such as system upgrades, software selection, and network configurations, may require approval from the managed service provider.

This loss of control can be a disadvantage for businesses that prefer to have complete autonomy over their IT operations.

Potential Communication Challenges

Effective communication is essential for addressing IT issues and aligning IT strategies with business goals.

Small businesses may face challenges in communication and coordination with an external managed service provider, especially if there are language barriers, time zone differences, or delayed response times.

Establishing clear communication channels and expectations from the beginning is crucial to mitigate these potential challenges.

Related Article: 5 Signs Your Managed Services Provider (MSP) Isn’t Cutting It.

Limited Customization

Managed IT services are designed to cater to the needs of multiple clients simultaneously. As a result, customization options may be limited, and small businesses may have to adapt their processes and requirements to fit the service provider's offerings.

This lack of customization can be a drawback for businesses with unique IT needs or those operating in niche industries.

Keep in mind there are managed IT vendors who can cater to your business specifically, as not all managed IT companies are the same. While you do your research, make sure to ask how they can align their IT practices with your individual technology needs.

Long-Term Costs

While managed IT services can offer cost savings in the short term, small businesses should consider the potential long-term financial implications.

The recurring subscription fees or pay-as-you-go model may accumulate over time, potentially exceeding the costs of in-house IT operations. Conducting a thorough cost-benefit analysis is essential to determine the most suitable IT management approach for the business.New call-to-action

Next Steps: Determining If You Need Managed IT Services

Managed IT services offer numerous benefits for small businesses, including cost savings, access to expertise, scalability, enhanced security, and increased focus on core activities. However, there are also potential drawbacks, too.

It is imperative for small businesses to carefully evaluate their specific needs, weigh the pros and cons, and choose a reputable managed IT service provider that aligns with their objectives. By leveraging managed IT services effectively, small businesses can enhance their IT capabilities, improve productivity, and gain a competitive edge in today's digital landscape.

So, what’s the next best step for you on your journey of exploring managed IT services? Check out our article, Why Does My Small Business (SMB) Need Managed IT Services?

Marissa Olson

A true southerner from Atlanta, Georgia, Marissa has always had a strong passion for writing and storytelling. She moved out west in 2018 where she became an expert on all things business technology-related as the Content Producer at AIS. Coupled with her knowledge of SEO best practices, she's been integral in catapulting AIS to the digital forefront of the industry. In her free time, she enjoys sipping wine and hanging out with her rescue-dog, WIllow. Basically, she loves wine and dogs, but not whiny dogs.