Guide
Managed IT vs. In-House IT: Which Is Right for Your Financial Firm?
Most financial firms weigh hiring IT staff against outsourcing to a managed IT provider. Here is how the two compare on coverage, security, compliance and cost.
Key takeaways
- One in-house hire rarely covers every skill a regulated firm needs, from firewalls to compliance evidence.
- Managed IT gives you a team, tools and coverage for a predictable monthly fee.
- In-house staff know your people and processes and can be on site every day.
- Many growing firms combine an internal IT lead with a managed IT provider.
Two models
What each model gives you
In-house IT
- Someone on site every day who knows your people and workflows
- Direct control over priorities
- Salary, benefits, training, tools and recruiting costs
- Gaps during vacations, illness and turnover
- Hard for one or two people to cover security monitoring, compliance documentation and after-hours support
Managed IT
- A team of specialists across help desk, networking, Microsoft 365, security and compliance
- Monitoring, patching, backup and security tools included in the service
- A predictable monthly cost
- Coverage that does not depend on one person
- Less day-to-day presence on site, so on-site visits need to be planned
- Results depend on choosing a provider that knows financial firms
Side by side
How they compare for a financial firm
- Coverage: an in-house team works its own hours; a managed provider can offer 24/7 support plans.
- Security: in-house teams must buy, configure and watch security tools themselves; managed providers bring endpoint detection and response, email security and monitoring as part of the service.
- Compliance evidence: patching, backup, access and incident records are easier to keep consistent when one provider runs them as a standard process.
- Expertise: one generalist versus a team with specialists for each area.
- Cost: a salary plus benefits, tools and training versus one predictable monthly fee.
- Continuity: knowledge can walk out the door with an employee; a provider documents your environment.
- Growth: adding offices or staff can mean another hire, while a managed plan scales with your firm.
When a mix makes sense
Firms with an internal IT person often keep that person for day-to-day work and use a managed provider for security tools, monitoring, after-hours coverage, projects and compliance documentation. The key is a clear split of responsibilities, so nothing falls between the two.
Deciding
Questions to help you decide
- How many employees, devices and offices do you support?
- Which regulators examine your firm, and who produces the IT evidence they ask for?
- Do you need help outside business hours?
- What happens when your IT person is on vacation or leaves?
- What is the full cost of a hire, including benefits, training and tools?
For a closer look at pricing, read how much managed IT services cost for a financial firm. To see what FinFortify includes, visit our managed IT services for financial firms page or request a quote.
FAQ
Managed IT vs. in-house IT questions
Is managed IT cheaper than hiring an IT employee?
For most small and mid-sized financial firms, yes, once you count benefits, training, tools and coverage for time off. Just as important, a managed provider gives you a team of specialists rather than one generalist.
Can a managed IT provider work with our existing IT person?
Many can. Ask how responsibilities would be split, who handles security monitoring and after-hours issues, and how documentation is shared.
What should a financial firm look for in a managed IT provider?
Experience with your type of firm and your regulators, security tools included in the plan, clear documentation for exams and audits, US-based support with defined coverage hours and transparent monthly pricing.
See what managed IT would look like for your firm
Book a free consultation with FinFortify.
