Outsourced IT vs. In-House IT: Which Saves More Money for Law Firms

Are you struggling to keep up with your law firm’s technology needs while also trying to control costs? If so, you’re not alone. Many law firms face a common dilemma when it comes to managing their IT infrastructure: should they outsource their IT needs or keep them in-house?

The decision between in-house vs. outsourced IT support can significantly impact your firm’s budget, efficiency, and ability to adapt to evolving tech demands. In this post, we’ll explore the cost implications of both to help you make the best choice for your law firm.

Understanding the Cost of In-House IT For Law Firms

Managing your tech needs in-house means hiring an internal IT team to handle all aspects of your law firm’s technology infrastructure. This includes tasks such as setting up and maintaining servers, managing networks, providing user support, and handling data security. 

While this may seem like the most straightforward law firm IT solution, it comes with its own set of costs and challenges. Here are some expenses you need to consider when evaluating the cost of in-house IT for law firms:

1. Salaries and Benefits:

Hiring an in-house team means paying competitive salaries and benefits to attract and retain top talent. This can be a significant expense for smaller law firms or those with limited budgets.

According to Indeed, the average salary for an IT professional is between $50K to $80K per year — and that’s for only one employee. Multiply that by the number of IT staff you need, and it can quickly add up. Additionally, you’ll have to consider benefits such as health insurance, paid time off, and retirement contributions.

2. Training and Development:

The legal industry is constantly evolving, and so are the technology demands. As such, your in-house team must stay updated with the latest trends and emerging technologies to ensure your law firm remains competitive and compliant.

This means investing time and money into their training and development. Whether it’s sending them to industry conferences or providing online courses, these expenses can add up over time.

3. Equipment and Software:

Your internal IT team will need the necessary equipment and software to perform their tasks efficiently. This includes hardware such as servers, desktops, and laptops, as well as licensed software for tasks like data security and network maintenance. Keep in mind that these items also come with ongoing maintenance costs.   

4. Overhead Expenses:

Having an in-house IT team may also mean having to provide them with a workspace, office supplies, and other necessary amenities. These overhead expenses may seem small at first glance, but they can add up quickly.

5. Downtime and Disruptions:

Another significant cost to consider is the potential for downtime and disruptions in your IT systems. Just one hour of network downtime can cost a law firm thousands of dollars in lost billable hours.

An in-house team may not always be readily available to handle these issues. This can lead to longer downtime periods and more financial losses.

How Much Do Outsourced IT Services Cost for Law Firms?

Outsourcing is becoming an increasingly popular option for law firms looking to manage their IT needs. This approach involves hiring a third-party provider to handle all or some of the firm’s technology requirements.

So, what is the cost of outsourcing IT for law firms? The answer can vary depending on a few factors:

• The size of the law firm
• The range of IT services needed
• The level of support required (e.g., 24/7 monitoring and management)
• The reputation and experience of the IT service provider 

On average, outsourced law firm IT solutions can range from $100 to $250 per monthly user. This price typically includes a package of services such as robust security measures, data backup and recovery, network monitoring, cloud services, and help desk support.  

The exact cost of outsourcing IT for law firms may also depend on the type of fee structure offered by the provider. Some may charge a flat monthly fee, while others may charge per hour or project. It is essential to carefully review and compare prices and services offered by different service providers to find the best fit for your law firm’s budget and needs.

In-House vs. Outsourced IT Support: Which Approach is More Affordable?

Deciding between outsourcing law firm IT solutions and having an in-house team can be challenging. To determine which approach is most cost-effective and beneficial for your firm, consider the following:

Benefits of Outsourced IT for Law Firms [From Costing Perspective]

1. Predictable Expenses

Managed service providers offer a more predictable and stable expense structure for law firms. With a flat monthly fee, there are no surprises or unexpected costs that could disrupt the firm’s budget. This allows for better financial planning and reduces the risk of overspending on IT services.

2. Specialized Expertise                     

Outsourcing IT services to a specialized provider means having access to a team of experts with specific knowledge and skills in the legal industry. These professionals are up to date on the latest technologies and can provide tailored solutions that meet the unique needs of law firms. This eliminates the need for training in-house staff, which can be costly and time-consuming.    

3. Scalable Services            

Another area that makes outsourcing an affordable IT solution for law firms is scalability. As your firm grows, so will its technology needs. An outsourced IT company can easily scale services up or down to match the size and demands of your firm. This helps to ensure you only pay for what you need.

4. Reduced Downtime and Increased Efficiency

Downtime can be costly for law firms, especially during critical tasks such as document review or court deadlines. Managed service providers offer proactive monitoring and remote support to quickly identify and resolve IT issues before they cause significant disruptions. This means your firm can focus on providing quality legal services without worrying about IT problems.

5. Security and Compliance

Law firms deal with sensitive and confidential information, making them prime targets for cyberattacks. The cost of a data breach can be significant, both financially and in terms of reputation.

Outsourced IT support companies with expertise in security and compliance ensure that your firm’s sensitive client data is protected against potential threats. This also helps to ensure that your firm remains compliant with industry regulations and can pass any necessary audits.

When Might In-House IT Be a Better Option? [From Costing Perspective]

While outsourcing IT services can offer many benefits for law firms, there may be instances where in-house IT is a better option from a costing perspective. Here are some situations where this may apply:

• Low technology needs: If your law firm has minimal technology needs and only requires basic support, it may be more cost-effective to have an in-house IT staff rather than outsourcing.
• Specific expertise required: In some cases, law firms may require very specific IT expertise that is not easily found in an outsourced provider. In these cases, having an in-house team with the necessary skills and knowledge may be a more cost-effective option.
• Control over IT decisions: Some law firms value full control over their IT decisions, costs, and processes. In this case, having an in-house team allows for more direct oversight and decision-making power.     

Making the Decision

When making the decision between outsourcing IT services and having an in-house team, it’s important to consider the unique needs and capabilities of your law firm. Here are some key factors to consider:

Existing IT Infrastructure

If your law firm already has a robust IT infrastructure in place, it may make more sense to continue managing it in-house rather than outsourcing. However, if your firm is just starting out or lacks the necessary resources for an in-house team, outsourcing may be a better option.

Staff Capability   

Consider the technical capabilities of your current staff. Do they have the necessary skills and expertise to manage your firm’s IT needs? If not, outsourcing may be a better choice as it allows you to tap into a larger pool of specialized professionals.

Budget

Budgets are a major factor in any business decision, and IT is no exception. Carefully evaluate outsourcing costs vs. having an in-house team to determine which option makes more financial sense for your law firm.

Growth Projection     

Consider the future growth of your law firm. Will you need to scale up your IT infrastructure and services in the near future? If so, outsourcing may be a more flexible option as it allows for easy scalability.

The Wrap Up

Ultimately, the decision between outsourcing and in-house IT services will depend on your law firm’s specific needs and circumstances. Before making a decision, it’s important to carefully evaluate the factors outlined above and weigh the pros and cons of each option.

At WAMS, Inc., we understand the unique challenges and considerations that law firms face when managing their IT needs. Our team of experienced professionals can provide tailored IT solutions to help your firm stay competitive and efficient.

Please visit WAMS, Inc. – Law Firm IT Services to learn more about our services and how we can support your law firm’s success!