When to Keep IT Support In-House vs. Outsourcing to an MSP

End-user mistakes, bugs in critical software applications, hardware failures, and other IT issues can strike at any moment and potentially grind your operations to a halt. That’s why it’s so important to anticipate them by having a robust IT support system in place. 

But how do you structure your IT support so that you’re prepared for any challenge while maintaining cost-effectiveness? The answer lies in striking the right balance between in-house capabilities and outsourced expertise.

Building Your IT Support Strategy One Tier at a Time

Not all issues are created equal. That’s why IT support is traditionally divided into three main tiers.

Each of the three main IT support tiers represents a different level of technical expertise and problem-solving capability. Think of it as a pyramid: the base is wide, handling a large volume of simpler issues, while the top is narrow, dealing with fewer but more complex problems that had to be escalated because the lower tiers couldn’t resolve them. 

Note: There are also Tier 0 and Tier 4: Tier 0 refers to self-help resources that users can access without contacting support directly, and Tier 4 involves support provided directly by manufacturers and vendors, often in the form of warranties. 

Tier 1: Basic IT Support

Tier 1 support, often referred to as the IT helpdesk, is the first point of contact for most users experiencing technical issues. 

The name “IT helpdesk” originates from the customer-facing nature of this role—it’s the first line of defense when employees run into technical difficulties. As such, it typically handles a high volume of relatively straightforward issues. 

Types of Issues Handled

At the Tier 1 level, the team primarily deals with basic troubleshooting tasks such as:

• User account management (password resets, account unlocks)
• Basic software support (installation of standard applications, simple updates)
• Hardware setup (connecting pre-configured PCs, replacing peripherals)
• Printer maintenance (paper/toner replacement, basic troubleshooting)

Required Skills and Expertise

The skills required for Tier 1 support are more about breadth than depth as helpdesk technicians need a general understanding of common software/ hardware and networking in addition to excellent communication and troubleshooting abilities. 

This wide-ranging skillset, combined with the typically straightforward nature of Tier 1 issues, allows for the quick resolution of most problems. A password reset? That’s often done in less than a minute. A monitor not working suddenly? A replacement one can be plugged in just a few minutes. You get the idea. 

In-house or Outsourced?

The decision to keep Tier 1 helpdesk support in-house or outsource it depends on the size of your organization.

For organizations with less than 50 staff, it’s typically best to outsource Tier 1 (and higher) support to a Managed Service Provider (MSP). This approach allows smaller organizations to benefit from professional IT support without the overhead of maintaining an in-house IT department. MSPs can provide round-the-clock support, access to a broader range of expertise, and can easily scale their services as the organization grows.

However, for organizations with 50 or more staff, managing Tier 1 support in-house often becomes more practical and cost-effective. With a larger staff, there’s usually enough IT work to justify having dedicated in-house IT personnel. These in-house technicians can provide immediate, hands-on assistance and develop a deep understanding of the organization’s specific IT environment and needs. They can simply walk directly to an employee’s desk to see the issue firsthand and resolve it right there on the spot.

Tier 2: Advanced IT Support

When an issue proves too difficult or complex for Tier 1 to handle, it gets escalated to Tier 2. 

This level of support typically involves system administration, network troubleshooting, and managing the underlying infrastructure that keeps an organization’s IT environment running smoothly. 

Types of Issues Handled

Here are a few examples of issues commonly handled by Tier 2 IT support:

• Advanced desktop troubleshooting (diagnosing and resolving more complex issues)
• New device setup and configuration (imaging, customization for user needs)
• Network connectivity troubleshooting (beyond basic connection issues)
• Printer and scanner configuration and advanced troubleshooting
• Mobile device management and support

Required Skills and Expertise

Tier 2 technicians are more specialized and possess a higher level of technical expertise than their Tier 1 counterparts. More specifically, they need advanced troubleshooting techniques, in-depth knowledge of operating systems and enterprise applications, as well as network configuration and management expertise, among other things.

In-house or Outsourced?

When it comes to deciding whether to keep Tier 2 support in-house or outsource it to a Managed Service Provider (MSP), most smaller organizations find that outsourcing is the more cost-effective and efficient option. 

By partnering with an MSP, businesses can leverage a team of experts who are trained to handle complex IT issues without bearing the high costs of hiring full-time Tier 2 staff. This also allows for scalability, as MSPs can adjust resources based on the organization’s evolving needs.

Tier 3: Expert IT Support 

Tier 3 represents the highest level of IT support, often referred to as expert support. It’s at this tier where the most complex and challenging IT issues are addressed.

Types of Issues Handled

Tier 3 support deals with the most challenging technical issues—those that can significantly impact your operations. Examples include:

• Server management and troubleshooting (hardware and software)
• Network infrastructure design, implementation, and optimization
• Database administration and performance tuning
• Enterprise application support and customization
• Cloud services management and integration
• Root cause analysis for recurring or severe issues

Required Skills and Expertise

Tier 3 technicians are seasoned professionals with a deep understanding of multiple IT domains. Their skill set typically includes expertise in advanced networking, the ability to write and understand code to automate tasks or resolve software issues, and advanced problem-solving/analytical skills, just to give a few examples. 

Due to their high level of technical expertise, they are significantly more difficult to find and costlier to hire than their Tier 1 or Tier 2 counterparts, a problem made significantly worse by the ongoing IT talent shortage. 

In-house or Outsourced?

For most smaller organizations, maintaining any in-house Tier 3 support is cost-prohibitive and highly impractical, so outsourcing it to an MSP is an easy choice. The level of expertise required at this tier commands high salaries, and the specialized nature of the work means that the hired expert may have nothing to do for long stretches of time, only to be suddenly overwhelmed during critical incidents.

What’s more, the breadth of expertise required at Tier 3 is vast and constantly evolving. A single in-house expert, no matter how talented, can’t possibly maintain deep knowledge across all areas of IT infrastructure, security, cloud technologies, and specialized business applications. It’s simply too much for one person or even a small team to cover comprehensively.

MSPs offer access to a diverse team of specialists, each focusing on their area of expertise. This collective knowledge far surpasses what any individual or small in-house team could provide, so no matter what complex issue arises, there’s an expert available to address it promptly and effectively.

Conclusion

Finding the optimal balance between in-house and outsourced IT support is paramount for maintaining efficient and cost-effective operations. For organizations with fewer than 50 employees, outsourcing all tiers of IT support to a Managed Service Provider (MSP) often provides the most comprehensive and cost-effective solution. 

For organizations with 50 or more employees, a hybrid approach is typically most effective. Keeping Tier 1 support in-house allows for immediate, hands-on assistance from technicians familiar with the organization’s specific environment. Meanwhile, outsourcing Tier 2 and Tier 3 support to an MSP provides access to specialized expertise for more complex issues without the high costs of maintaining an in-house team of advanced IT professionals.

If you’re looking for a capable and reliable MSP to outsource some or all of your IT support needs, OSIbeyond is here to help. With our team of experienced professionals and comprehensive range of managed IT services, we can tailor a support solution that perfectly fits your organization’s unique requirements. Don’t let IT challenges hold you back—contact OSIbeyond today to empower your organization with expert IT support.