How do you keep IT systems efficient while you adopt new technologies and control costs? For IBM i environments, known for their reliability and scalability, this question takes on even greater significance. The challenge to balance performance, cost, and innovation can push businesses to a tipping point.
The decision often comes down to two paths:
- Manage In-House: Create and manage an internal team. While this offers control, it demands significant investment and risks skill shortages.
- IBM i Managed Services: Partner with external experts who bring proven tools, specialized knowledge, and the flexibility to scale quickly.
This choice isn’t just about budgets. It defines how fast your business adapts to change, meets customer demands, and modernizes operations in an unpredictable market. The wrong decision risks prolonged downtime, skill gaps, and stalled modernization. The right one unlocks efficiency, scalability, and strategic growth.
This guide dissects the trade-offs between an in-house vs. managed services IT approach to help you make the best choice for your organization.
The Cost Breakdown: In-House vs. Managed Services
In-House IBM i IT
An in-house IT team gives businesses direct control. Employees focus solely on your business and align their efforts with organizational goals and culture. However, managing an in-house team often requires significant investment. The average annual salary for an RPG developer in North America exceeds $95,000.
Furthermore, costs extend beyond salaries and benefits to include training, retention programs, and consistent investments in certifications and tools. Hiring skilled professionals who understand IBM i environments, such as RPG, COBOL, or Java, can be a lengthy and expensive process, particularly in a competitive market.
Why IBM i Managed Services Could Be Your Best Bet
IBM i managed services offer a more predictable and often more efficient cost structure. Businesses gain access to seasoned IBM i professionals for a fraction of the cost of hiring full-time staff.
Did you know? A Deloitte report highlights that 57% of organizations cite cost reduction as the primary reason to outsource IT services.
Flexible contracts allow businesses to scale their IT support based on project needs. This means you only pay for the resources you need, whether for ongoing support or specific projects. Managed services eliminate recruitment costs and reduce the financial burden of an internal team.
Key Insight: In-house teams work well for stable operations with predictable needs. For businesses that seek cost efficiency and scalability, IBM i managed services offer a more economical alternative.
Navigating Expertise and Skills Availability in IBM i IT
In-House IBM i IT
An internal team brings deep familiarity with your processes, systems, and organizational culture. With long-term staff, institutional knowledge remains intact, which creates smoother workflows and fewer handoffs.
However, the market for skilled IBM i professionals remains highly competitive, particularly those versed in RPG, COBOL, PHP, and Java.
💡 In the latest IBM i Marketplace Survey, 46 percent of respondents listed IBM i skills as a top concern, highlighting a significant talent gap.
IBM i IT Managed Services
IBM i managed services provide immediate access to a broad pool of seasoned IBM i experts. These professionals have experience across various industries and projects, which ensures they can handle complex tasks efficiently. With no ramp-up delays, a managed services partner helps reduce disruptions and deliver results faster, filling the skills gap that many organizations face.
Key Insight: While in-house teams excel in continuity and cultural alignment, managed services provide the depth and breadth of expertise needed to meet evolving business demands.
How to Scale Your IT Operations Without Breaking the Bank
In-House IBM i IT
In-house teams work well when your IT workload remains consistent. They allow complete control over priorities and decisions. However, when workloads increase, for example, during system upgrades or major projects, expanding internal resources becomes a challenge.
💡 According to a SHRM survey, the average time to fill an IT position is 42 days, which significantly slows agility and project timelines.
IBM i Managed Services
Managed services are designed for scalability. In a recent survey of over 1,000 business leaders around the world, companies see managed services as part of their ‘playbook’ for sustained transformation.
Whether you require short-term support for a specific project or long-term assistance, managed services scale resources up or down based on your requirements. This ensures your IT operations match business demands with no delays or extra costs.
Key Insight: In-house teams excel in familiarity and long-term consistency, while managed services offer scalability and flexibility but may require trade-offs in control and internal expertise.
Security and Compliance: Who Holds the Upper Hand?
In-House IBM i IT
Internal teams offer direct oversight, tailoring security measures to align with organizational policies. However, this approach requires the business to stay current on new security threats and compliance requirements, which demands continuous training and resource allocation.
IBM i IT Managed Services
IBM i managed service providers bring specialized expertise and tools designed to address emerging threats. They offer advanced monitoring, threat detection, and proactive patch management. They also stay current with regulatory changes, which minimizes the risk of non-compliance. The drawback is that it requires trust in an external partner to handle sensitive data.
Key Insight: In-house teams excel in personalized control over security, but managed services provide proactive, scalable solutions that adapt to new risks and regulations.
Control vs. Innovation: Find the Right Balance
In-House IBM i IT
Internal teams offer unparalleled control over decisions, tools, and strategies. However, innovation can take a backseat as resources focus on day-to-day operations. Without external influence, teams may fall into the trap of “business as usual” and neglect disruptive solutions.
IBM i IT Managed Services
An IBM i managed services partner can introduce advanced tools and best practices, enabling businesses to innovate faster. They bring frameworks like DevOps for automation or AI-driven analytics to modernize processes. This partnership can free up your internal team to focus on strategic initiatives rather than routine maintenance.
Key Insight: In-house teams retain control, while managed services unlock innovation with deep industry expertise and reduce operational burdens.
The Hybrid Approach: Is It the Best of Both Worlds?
A hybrid IT strategy combines the strengths of in-house teams with the expertise of managed services. This approach allows organizations to retain control over core functions while outsourcing areas that demand specialized skills or scalability.
- Control Over Mission-Critical Operations: Businesses maintain in-house control of sensitive or proprietary processes to ensure compliance and continuity.
- Strategic Risk Management: A hybrid model reduces over-reliance on any single strategy, balancing internal oversight with external expertise.
- Optimized Costs: Companies allocate resources strategically. High-cost internal talent focuses on high-value initiatives, while external providers handle repetitive or niche tasks at a lower cost.
The Ultimate Guide to Choosing the Best IT Strategy for IBM i Environments
Making the right choice between an in-house team and managed services defines how your business adapts to market demands and technological shifts. While in-house teams offer control and continuity, managed services bring unmatched expertise, scalability, and innovation. A hybrid model can also offer a strategic balance of both.
For IBM i environments, this decision requires a clear understanding of your system’s strengths and vulnerabilities. Does your team handle every challenge effectively, or do you need external expertise to close critical gaps and drive modernization forward?
To make an informed decision, you need a complete picture of the trade-offs. Our eBook, “In-House vs. Managed Services: An IBM i Decision-Maker’s Guide,” provides a detailed comparison to help you weigh the costs, benefits, and risks of each approach.
Download the guide now to align your IT strategy with your long-term business goals and choose the right path for your organization.
