Hire an IT Manager or Outsource the IT Function? How to Decide

Company size is only the starting point

Company size is a useful starting point when deciding how an IT function should be structured, but it is not a definitive measure. As business grows, more employees, devices, systems and locations create greater demands across IT support, security and day-to-day management, making dedicated expertise increasingly valuable.

As a general guide, the level of IT support required often looks like this:

• Fewer than 50 employees: IT requirements can often be managed by operations, HR, or existing technical staff without a dedicated IT hire.

• 50 to 250 employees: IT demands typically become more significant, making a dedicated IT manager increasingly valuable.

• More than 250 employees: A dedicated IT function, defined budget, and long-term strategy are generally needed to manage growing operational and technical requirements effectively.

Complexity and security matter too

The employee thresholds above provide a useful benchmark, but they do not apply equally to every business. A 40-person company handling sensitive customer data or relying on a complex technology stack may have greater IT requirements than a much larger business with a simpler setup.

The need for dedicated IT support can therefore be driven by factors such as data security, regulatory requirements, cloud infrastructure, business-critical software and remote working. These areas require specialist knowledge and become increasingly difficult to manage alongside the responsibilities of HR, operations or other teams.

For businesses with higher levels of risk or technical complexity, investing in dedicated IT expertise earlier can help prevent security issues, compliance gaps and operational disruption from becoming more costly problems later.

An MSP can bridge the gap

For businesses that need dedicated IT expertise but are not yet ready to build an in-house function, a Managed Service Provider (MSP) can provide a practical middle ground. MSPs offer access to specialist skills, ongoing support and broader coverage without the cost and management overhead of employing a full-time team.

The right MSP will depend on the business’s systems, security requirements and level of support needed. Comparing providers on scope, response times and pricing can help ensure the service matches the organisation’s requirements as it grows.

Consider how IT fits into the employee lifecycle

As IT becomes more closely tied to the employee lifecycle, the responsibilities of IT and HR increasingly intersect. Onboarding, offboarding and role changes all involve both people and technology, from setting up accounts and access to ensuring the right equipment is available and recovered.

This makes effective coordination between IT and HR increasingly important. It also reflects a broader shift towards viewing IT as an enabler of productivity and operational efficiency, rather than simply a support function.

Separate IT strategy from hardware management

Whether IT is managed in-house or through an MSP, the physical side of device management still needs to be addressed. Someone needs to coordinate suppliers, order and deliver equipment, arrange collections, manage repairs and track devices throughout their lifecycle.

This is a separate operational challenge from deciding who manages the IT function. An IT manager or MSP can take ownership of IT strategy, security and support, but that does not necessarily remove the administrative work involved in managing the physical devices themselves.

Where Ooodles fits in

The decision between hiring an IT manager and working with an MSP determines who manages the IT function. The next question is how the hardware supporting that function is managed.

Ooodles handles device procurement, logistics and the full hardware lifecycle, reducing the time spent on hardware management by 50%. This gives IT managers, MSPs and operations teams a dedicated solution for the physical side of IT,  from sourcing and delivery through to repairs, collections and end-of-life.

The result is a clearer division of responsibility: IT teams can focus on systems, security and strategy, while Ooodles takes care of the devices that keep the business running.

FAQ

When should a business hire an IT manager?

Company size is a useful starting point, with dedicated IT support often becoming more valuable between 50 and 250 employees. However, complexity, security requirements and the number of systems and devices a business relies on can make dedicated IT expertise necessary earlier.

When is an MSP a better option than hiring an IT manager?
An MSP can be a good option for businesses that need specialist IT expertise and ongoing support but are not yet ready to build an in-house IT function. The right choice depends on the level of support required, internal resources, security needs and overall cost.

Does hiring an IT manager or MSP solve device management?
Not necessarily. IT managers and MSPs can take responsibility for IT strategy, security and support, but the physical device lifecycle is a separate operational challenge. Procurement, delivery, collections, repairs, replacements and end-of-life still need to be managed.

Who should manage the hardware lifecycle?
The responsibility can sit with an IT team, operations team, MSP or a dedicated hardware lifecycle provider. What matters is having a clear process for managing devices from procurement through to return, repair, replacement and end-of-life.