With the average data breach costing $4.4 million, how you manage your company phones matters more than you might think. Find out whether handling it in-house or outsourcing to a managed provider is the right move for your business.

In-house or outsourced: how should you manage business phones?

There are pros and cons to both in-house and outsourced phone management, and the right choice entirely depends on your business needs. Outsourcing to a managed phone services provider can save you time, reduce administration and make it easier to scale if you have plans to grow your business.

However, in-house phone management can work well for businesses that already have strong internal IT functions and want more direct control.

What is the difference between in-house and outsourced phone management?

Managing a fleet of business devices involves a constant balancing act of time, administration, tech skills, and security pressure. The difference is how much of that you want to – or can – take on internally. When you keep it in-house, your IT and HR teams handle everything from device set-up and security to onboarding and offboarding, support and replacements. Some businesses manage this manually, while others use mobile device management (MDM) tools or work with a managed device service (MDS) to make things easier.

MDM software allows whoever is managing your devices to configure them, push out security policies, and remotely wipe lost or stolen handsets – all from a central dashboard.

With outsourced management, a third-party provider looks after a lot of the day-to-day admin for you. MDS can provide and set up new devices and accessories, configure and manage your MDM environment, handle repairs, replacements and upgrades, and retire old devices when they're no longer needed.

The pros and cons of in-house phone management for businesses

Managing your business phones in-house gives you or your IT team direct control over your entire device fleet, but it also comes with a significant time investment.

Pros of managing your business phones in-house

More internal control

When your IT manages your phones (either manually or using an MDM), you have full control over your fleet. They can tailor devices to suit your needs and monitor use, without having to rely on a third party.

Faster response to data breaches

If a device is lost, stolen or hacked, you can act immediately to lock accounts or wipe handsets without delay. With the average cost of a data breach at $4.4 million, the ability to act fast and limit the damage from a breach is crucial for businesses.

Easier compliance management

If your business handles sensitive data, you’ll need to meet data protection and privacy regulations, whether that’s GDPR in Europe, state privacy laws in the US, or industry-specific requirements. Managing your devices in-house, means your compliance records and audit trails stay internal.

Cons of managing your business phones in-house

IT burden and resource drain

Device management can be time consuming – and expensive. Managing smartphones for 1,000 employees requires more than two full-time people – an annual investment of $180,000 in salaries and overheads

Even without 1,000 staff, most businesses won’t have dedicated people managing company phones. Instead, the work often falls to IT teams or office managers already juggling other responsibilities.

Difficulty keeping up with cybersecurity threats

In many businesses, IT teams are responsible for a bit of everything, from device setup and support to security and troubleshooting. But 88% of organisations experienced at least one significant cybersecurity consequence as a direct result of a skills shortage.

Without expert resources, it can be extremely difficult to keep up with new threats, security updates, and best practice.

The pros and cons of outsourced phone management for businesses

Outsourcing phone management frees up your internal team, but there are ongoing costs and contractual commitments to think about too.

Pros of outsourced phone management

Streamlined updates

Keeping company phones updated is one of the biggest drains on your time. When you outsource to a managed phone service, they’ll handle the operating system, security updates and policy changes as part of the service.

Tighter data security

73% of organisations saw a reduction in the impact of disruptive cyber incidents after partnering with a managed security services provider.

A major benefit of using a managed service provider is you get dedicated security expertise and round-the-clock monitoring that most small businesses can’t match in-house.

Scalability

Outsourcing makes it easier to grow your business phone set up without adding pressure to your IT team. A managed service provider can add capacity quickly and at a predictable cost.

Cons of outsourced phone management

Monthly costs

Outsourced phone management also comes with ongoing monthly costs. Most providers charge on a per-device, per-month basis, so costs can rise as your team grows.

Contract commitments

Most managed service providers require a minimum contract term. This can mean you have limited flexibility if your needs change or you want to switch providers.

Choosing in-house or outsourced phone management

The right choice depends on your business’ size, needs, resources and priorities.

If the below sounds like you, choose in-house management:

You have a dedicated IT team with capacity to manage devices.

Your business needs direct control over compliance records.

You want to respond to security incidents immediately, without relying on a third party.

If the below sounds like you, choose outsourced management:

Your business is growing and you need something that’s easy to scale without adding headcount or infrastructure.

You don’t have specialist cybersecurity expertise in-house and want dedicated support.

Your IT team reassurance is already stretched and device management is taking time away from other priorities.

Key takeaways

In-house phone management gives your IT team full control, but comes with a significant time and resource commitment.

Outsourcing to a managed service provider can simplify device management, from setup and support through to repairs, replacements and security.

The right choice depends on your team's capacity, your compliance needs, and how fast your business is growing.

Frequently Asked Questions

What is the difference between in-house and outsourced phone management?

With in-house phone management, your IT and HR teams are responsible for managing your company’s phones. When you outsource it, a third-party managed service provider takes on those responsibilities.

Why should you outsource company phone management?

Outsourcing can save your IT team time and effort by taking care of the full device lifecycle, from providing and setting up new devices to repairs, replacements, upgrades and retirement. It’s also easier to add to as your business grows.

Is in-house phone management better than outsourced phone management?

Neither is better, it just depends on what your business needs. With in-house management, you’ll have more control, while outsourcing is usually a more practical choice for growing businesses that need a scalable solution.