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When managing IT in-house, cost transparency is often underestimated. If you’re evaluating costs based only on IT salary, your totals are misleading and do not represent the true cost of IT.

It’s crucial to consider how managing your IT in-house can hit your bottom line in some important, but commonly-overlooked ways.

Here are the 5 biggest hidden costs of managing IT in-house:

People Time / Loss Of Productivity

Your employees are your company’s biggest resource, but an inadequate in-house IT infrastructure means they have to spend time trying to solve their own computer issues; or worse, it may cause them to be unproductive while they are forced to wait for their problems to be fixed.

If you try to solve this by distributing IT tasks among existing staff, it might feel like you’re saving money. But you’re actually just reducing productivity by taking their focus away from their core business responsibilities. You probably aren’t solving problems long-term either.

Most businesses don’t have a way to create reports about their in-house IT.

Without proper Root Cause Analyse to evaluate the cause of end-user issues and network problems, you may be faced with paying unskilled staff to resolve the same problem again and again. Ultimately, this increases operational expenses.

3 Employees troubleshooting an IT issue


With an in-house IT infrastructure, your IT is always going to be reactive: Only when there’s a problem does someone swoop in to fix it.

This old-school way of providing staff with IT support means that not only is downtime more frequent, but when it does occur, your staff have to down tools for longer periods of time.

The alternative is proactive maintenance. This where our systems flag anomalies and one of our engineers can fix the issue before it affects the user.

Find out more about the costs of downtime here!

Downtime also leads to an intangible cost – Staff Frustration.

Staff Frustration

When it’s not directly part of their job role but their stuck fixing IT issues because they’re the most “techy”, it can get frustrating – especially when dealing with people who themselves are frustrated.

It’s also a risky strategy. Lose that person and your business is left exposed. And the longer a replacement takes to find, the greater the impact on employee productivity.

Modern hardware doesn’t have to cost the earth. Partnering with an MSP allows you to spread out payments over several years and eliminate upfront costs, which helps maintain a steady cash flow.

You can read more about the costs of slow technology here!

And frustrated people will care less about security protocols. Leading to…

Shadow IT

Your staff are smart. If you don’t provide them with the tools they need to do their work efficiently, they will find alternative workarounds. The unapproved purchase of software, apps, licenses, and subscriptions can quickly add up and is commonplace in businesses with internal IT.

Will they tell you about it? Absolutely not! They are saving time and you’ll make them stop. They’ll continue to work in the shadows – hence the name: Shadow IT.

Shadow IT conjures negative images – I think a dark, hooded figure lurking behind a monitor –  and it should. Unapproved software/hardware exposes your business to security risks that are never cheap or straightforward to resolve.

Frustrated Office Worker struggling to resolve his own IT issue without support

Knowledge Gap

If in-house IT resources are consumed by providing first-line support, it means IT departments can’t allocate the time or funds for staff development.

Essentially, ensuring business continuity becomes an obstacle to investing in the necessary on-going training and certifications for your IT staff.

This is a key point because without technical certifications it can be difficult to maintain a competitive advantage in the modern marketplace.

An outsourced IT team can be helpful when your business has a new challenge it needs to solve because they have a wide range of experience gained from helping multiple clients solve a diverse range of problems.

However, when your in-house team lacks the knowledge to take advantage of emerging technologies, you can end up missing out on business-changing opportunities.

For businesses managing IT in-house, that loss of potential revenue has to be considered.