Managed IT services vs in-house IT: What’s the Difference?

Understanding the difference between managed IT services vs in-house IT is essential when deciding how to structure your organisation’s technology support and long-term IT strategy.

A Managed IT Service Provider (MSP) is an external partner that delivers ongoing IT support, system monitoring, maintenance, and strategic advice under a monthly or fixed-price agreement. These providers offer a wide range of services, including network management, cloud computing, cyber security, backup and disaster recovery, and remote helpdesk support—typically with 24/7 availability. MSPs bring a proactive approach to IT, identifying and resolving issues before they disrupt operations.

On the other hand, in-house IT departments are internal teams employed by the business. They work exclusively for the organisation and usually provide hands-on, onsite support. While this internal model offers greater familiarity with internal systems and culture, it can also be limited by team size, capacity, and skills—especially for small to mid-sized businesses.

When comparing managed IT services vs in-house IT, one major factor is cost. Building and retaining an internal IT team requires ongoing recruitment, salaries, leave cover, training, and software licensing. MSPs offer a more predictable, scalable model that aligns with your business’s growth while avoiding the overheads of full-time staffing.

Another key difference is breadth of expertise. MSPs support multiple clients across industries and bring a deep, up-to-date knowledge of modern technologies and compliance requirements—helping your business stay secure and competitive.