Build or Buy? How to Decide If You Should Outsource IT or Keep It In-House
Jun 26, 2025 Alex Davis Strategy & Modernization | IT Services & Support 3 min read



As your business grows, so does the complexity of your technology needs. At some point, every company faces the pivotal question: Should we build an internal IT team or outsource to a managed service provider (MSP)?
There’s no one-size-fits-all answer, but there is a smart way to decide. In this guide, we’ll help you evaluate both options with a practical framework and show you the scenarios where outsourcing IT makes the most sense—and when an internal team might be justified.
What Does “Build vs. Buy” Really Mean in IT?
- Build = Hiring in-house staff to manage your IT systems, support, security, and strategy.
- Buy = Partnering with an external provider to handle all or part of your IT needs (often through a Managed Service Provider or MSP).
Both approaches have pros and cons, depending on your company’s size, goals, industry, and growth stage.
Your Decision Framework: 5 Key Considerations
1. Budget and Cost Predictability
- Build: High up-front investment in salaries, benefits, tools, and training. You may also need to hire multiple specialists (network, cloud, security).
- Buy: Predictable monthly cost with access to a full team of experts. No surprise costs for turnover or emergency support.
Outsource if: You need cost control, flexibility, or can’t afford a full internal team.
Keep in-house if: You have a larger IT budget and long-term hiring capacity.
2. IT Complexity and Compliance Requirements
- Build: May work for companies with simple, static environments and minimal compliance demands.
- Buy: MSPs bring industry-specific compliance expertise (HIPAA, FINRA, SOX, NIST) and are structured for 24/7 monitoring, patching, and audits.
Outsource if: You operate in a regulated industry or manage sensitive client data.
Keep in-house if: You already have a compliance-savvy IT leader with the bandwidth to manage risk.
3. Scalability and Growth Plans
- Build: Scaling requires recruiting, onboarding, and training additional staff—often slower and more costly.
- Buy: MSPs scale on demand. Whether you're adding headcount, locations, or cloud services, they can ramp up fast.
Outsource if: You anticipate rapid growth or fluctuating IT needs.
Keep in-house if: Your growth is predictable and you have a long-term plan to build IT capacity.
4. Access to Expertise
- Build: One or two internal hires can rarely cover everything—cybersecurity, cloud strategy, network management, help desk, and more.
- Buy: Outsourced IT gives you access to a wide bench of specialists, often with certifications and experience across multiple industries.
Outsource if: You need broader expertise than you can afford to hire internally.
Keep in-house if: You can afford a multi-role team or already have specialized staff.
5. Business Agility and Innovation
- Build: Internal teams can be close to operations but may get bogged down with tickets and lack time for strategic projects.
- Buy: An MSP provides structured processes, automation, and tools that support innovation and agility.
Outsource if: You want to offload day-to-day IT so you can focus on strategic growth.
Keep in-house if: Your IT team is already embedded in product development or mission-critical R&D.
What About a Hybrid Model?
You don’t have to choose one or the other. Many growing businesses use a co-managed IT approach, where internal staff handles on-site support or user-specific needs, and an MSP handles security, compliance, monitoring, and high-level strategy.
This hybrid approach gives you the best of both worlds: local insight and enterprise-grade support.
Real-World Scenarios: When to Build or Buy
Scenario |
Recommendation |
You’re a 20-person consulting firm with no IT staff and rapid growth ahead |
Buy |
You’re a 300-employee manufacturing company with heavy legacy systems |
Co-Managed or Build |
You’re scaling a startup from 50 to 150 employees in 12 months |
Buy |
You’re a 100-person legal firm with internal compliance expertise |
Co-Managed or Build |
You need 24/7 support and security monitoring but only have one IT person |
Buy |
Final Thoughts: Build Smart, Buy Strategically
Your IT function is too important to get wrong. Whether you build or buy, the goal is the same—reliable systems, protected data, happy users, and a platform that supports your growth.
Outsourcing IT isn’t just a cost-saving measure. It’s often the fastest way to elevate your operations, gain strategic insight, and protect your business from risk.
Need help evaluating your IT strategy?
We offer no-obligation consultations to help you assess whether your current IT setup is aligned with your business goals. Let’s talk.
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