Outsourced IT Services: What to Outsource and What to Keep

By The Uptime Report editorial team · Last updated September 2026

Outsourced IT services hand specific technology functions to an external provider instead of running them internally. It is now standard practice: around 74% of SMBs outsource at least one IT function, most often monitoring, help desk, and backup.

What are outsourced IT services?

Outsourced IT services move specific technology functions to an external provider: monitoring, help desk, security, backup, or entire IT operations. Rather than hiring and maintaining the capability internally, you access a provider’s team and tools for a monthly fee. Market.us reports around 74% of SMBs now outsource at least one IT function, in a market worth about $430 billion in 2026.

What do businesses outsource most?

The most-outsourced functions map to the services MSPs most commonly offer: remote monitoring and management, outsourced help desk, and backup and disaster recovery lead, followed by email management and security. These are functions that benefit from scale and 24/7 coverage that a small internal team cannot provide.

What should you keep in-house?

The decision is rarely all-or-nothing. Most businesses keep strategy, vendor relationships, and daily hands-on user support closer to home, and outsource after-hours coverage, specialized skills, and infrastructure operations. The question for each function is whether it is core to your business or better handled by a provider with more scale.

How much do outsourced IT services cost?

Pricing follows the managed IT model: per user or per device, monthly. Outsourcing a specific function costs less than a full managed plan, and both cost far less than hiring equivalent internal staff. For a small business, outsourcing delivers a full team’s worth of skills for the price of a fraction of one hire.

Frequently asked questions

What are outsourced IT services?

Technology functions handed to an external provider instead of run internally, such as monitoring, help desk, security, and backup, for a monthly fee.

What IT functions do businesses outsource most?

Remote monitoring, help desk, and backup and disaster recovery are the most commonly outsourced, followed by email and security management.

How many businesses outsource IT?

About 74% of SMBs outsource at least one IT function, and 48% of firms with 50-499 employees use an MSP as their primary IT model.

What should stay in-house when outsourcing IT?

Typically strategy, vendor relationships, and daily user support, while coverage, specialized skills, and infrastructure operations are outsourced.

How much do outsourced IT services cost?

Per user or per device monthly. Outsourcing costs far less than hiring equivalent internal staff for the same coverage.

Is outsourcing IT safe?

With a reputable provider and clear agreements, yes. Outsourcing often improves security because providers bring tools and expertise small firms cannot staff.