Why 72% of SMBs Plan to Outsource IT by 2025

The majority of small and medium businesses are turning to managed IT services. Here is what is driving this trend and what to consider.

Published 2026-02-03 by TechNet New England

According to industry research, 72% of SMBs planned to outsource their IT operations by 2025, particularly in areas like cybersecurity, data backup, and IT infrastructure management. This represents a significant shift in how small businesses approach technology.

Why Businesses Are Outsourcing

Security Complexity

With cyberattacks rising by 38% in 2024, businesses increasingly recognize they cannot address modern security threats alone. Managed Service Providers (MSPs) offer security solutions including firewall management, endpoint protection, and ransomware mitigation that would be difficult to implement in-house.

Talent Shortage

Hiring and retaining qualified IT staff is challenging for small businesses. Competing with larger companies for technical talent, while also providing career growth opportunities, often proves impractical. Outsourcing provides access to teams of specialists.

Cost Predictability

MSP pricing models provide predictable monthly costs rather than unpredictable emergency expenses. Common models include:

Cloud Management

Over 60% of businesses are planning to increase cloud spending. Managing cloud infrastructure, ensuring security, and optimizing performance requires expertise that most small businesses lack internally.

Hybrid Work Support

With 85% of companies adopting hybrid work models, there is increasing need for remote monitoring, secure remote access solutions, and collaboration tools - areas where MSPs specialize.

The MSP Value Proposition

The fundamental value of working with an MSP combines budgetary predictability, access to expertise, and operational reliability. For small businesses, the MSP model allows them to access enterprise-grade IT capabilities without building an internal department.

Key benefits include:

Strategic Partnership vs. Break-Fix

The MSP model positions the IT provider as a partner in business success rather than someone who simply fixes problems when they occur. MSPs work proactively to prevent issues and leverage technology for business advancement.

In 2025, businesses are looking for trusted advisors who can guide them through digital transformation, not just technicians who respond to emergencies.

Emerging MSP Trends

The MSP industry is evolving with:

What to Look for in an MSP

When evaluating managed IT providers:

  1. Clear service level agreements with measurable outcomes
  2. Security certifications and documented practices
  3. Experience with your industry and its requirements
  4. Transparent pricing without hidden fees
  5. Proactive approach to technology planning
  6. Local presence for on-site support when needed

TechNet New England provides managed IT services designed for small and medium businesses in the region.

Sources: MSP Market Research 2025, Sherweb Partner Research, ManageEngine MSP Guide