Making the right choice between NetSuite managed services and in-house support can significantly impact your business efficiency, costs, and growth trajectory. Here’s everything you need to know to make an informed decision.
Understanding Your NetSuite Post-implementation Options
When implementing NetSuite as your enterprise resource planning (ERP) solution, one critical decision stands between you and operational success: how will you manage ongoing support and maintenance? The choice typically comes down to two primary approaches: partnering with a NetSuite managed services provider or building an in-house support team.
This decision affects everything from your monthly operational costs to your ability to scale and adapt to changing business needs. Let’s explore both options to help you determine the best fit for your organization.
What Are NetSuite Managed Services?
NetSuite managed services involve partnering with a third-party provider who handles your NetSuite administration, maintenance, customization, and support. These specialized firms employ certified NetSuite professionals who work as an extension of your team, providing expertise without the overhead of full-time employees.
Key Components of Managed Services
System Administration: Regular maintenance, user management, security updates, and performance monitoring ensure your NetSuite environment runs smoothly.
Custom Development: When your business processes require specific functionality, managed service providers can develop custom scripts, workflows, and integrations.
Training and Support: Ongoing user training, help desk support, and best practice guidance keep your team productive and your system optimized.
Strategic Consulting: Experienced providers offer insights into NetSuite’s evolving capabilities and how to leverage new features for competitive advantage.
The In-House Support Approach
Building an in-house NetSuite support team means hiring dedicated staff to manage your ERP system internally. This approach gives you direct control over your NetSuite environment and ensures your support team understands your unique business processes intimately.
What In-House Support Entails
Dedicated Team Members: Full-time employees focused exclusively on your NetSuite implementation, from system administrators to developers.
Internal Knowledge Base: Deep understanding of your specific business processes, customizations, and user needs develops over time.
Immediate Availability: Your team is always accessible during business hours and can provide instant support for urgent issues.
Long-term Investment: Building internal expertise that stays with your organization and grows with your business needs.
Expertise and Skill Availability
Managed Services Advantages
NetSuite managed service providers employ teams of certified professionals with diverse experience across industries and implementations. This breadth of knowledge means:
- Immediate Access to Specialists: Complex issues can be escalated to experts with specific experience
- Industry Best Practices: Providers work with multiple clients and understand proven approaches
- Continuous Learning: Teams stay current with NetSuite updates and new features
- Scalable Resources: Additional expertise available for projects without hiring delays
In-House Team Benefits
Internal teams offer deep knowledge of your specific business:
- Business Process Intimacy: Understanding of unique workflows and requirements
- Stakeholder Relationships: Established connections with users across departments
- Company Culture Alignment: Team members who understand your organizational values and goals
- Dedicated Focus: 100% attention on your NetSuite environment and user needs
Flexibility and Scalability Considerations
Managed Services Scalability
Managed service providers excel at adapting to changing business needs:
- Resource Scaling: Easily increase or decrease support levels based on business cycles
- Project Flexibility: Access additional specialists for major initiatives without hiring
- Technology Updates: Providers invest in training and tools that benefit all clients
- Geographic Coverage: Many providers offer 24/7 support across multiple time zones
In-House Scalability Challenges
While in-house teams offer control, they present scalability limitations:
- Hiring Delays: Finding and onboarding qualified NetSuite professionals takes time
- Skill Gaps: Limited expertise may require expensive training or external consultants
- Capacity Constraints: Fixed team size may struggle with peak workloads or special projects
- Succession Planning: Key person dependencies create risk if team members leave
Making the Right Choice for Your Organization
Choose Managed Services If:
Budget Constraints: You want predictable monthly costs without large upfront investments in hiring and training.
Rapid Growth: Your business is scaling quickly and needs flexible support that can adapt to changing requirements.
Limited Internal Resources: You lack the time or expertise to recruit and manage NetSuite professionals.
Complex Requirements: Your implementation requires specialized skills or industry-specific knowledge.
Geographic Distribution: You need support across multiple time zones or locations.
Choose In-House Support If:
Sufficient Budget: You can invest $250,000+ annually in building and maintaining an internal team.
Unique Processes: Your business has highly specialized requirements that external providers struggle to understand.
Control Requirements: You need direct oversight of all NetSuite-related decisions and implementations.
Long-term Stability: Your NetSuite requirements are stable and unlikely to change significantly.
Internal Expertise: You already have qualified NetSuite professionals on staff.
Hybrid Approach: Best of Both Worlds
Many organizations find success with a hybrid model that combines in-house and managed services:
- Core Team: Maintain one or two internal NetSuite professionals for daily operations
- Specialized Support: Partner with managed service providers for complex projects, training, or overflow capacity
- Strategic Consulting: Engage external experts for major decisions or system upgrades
This approach provides internal knowledge and control while accessing specialized expertise when needed.
Key Questions to Ask Before Deciding
Before making your final decision, consider these critical questions:
- What’s your total budget for NetSuite support over the next three years?
- How complex are your current and planned NetSuite customizations?
- Do you have experience recruiting and retaining NetSuite professionals?
- How quickly do you need to scale your support capabilities?
- What level of control do you need over day-to-day NetSuite operations?
- Are there compliance or security requirements that affect your support model?
Making Your Decision
The choice between NetSuite managed services and in-house support isn’t one-size-fits-all. Consider your budget, growth trajectory, internal capabilities, and long-term strategic goals.
For most small to medium-sized businesses, managed services offer the best combination of expertise, cost-effectiveness, and scalability. Larger enterprises with complex requirements and sufficient budgets may benefit from building internal capabilities.
Remember that this decision isn’t permanent. Many organizations start with managed services and gradually build internal capabilities, or begin with in-house support and supplement with external expertise as needs evolve.
Ready to explore your NetSuite post-implementation options? Evaluate your current challenges, future goals, and available resources to determine which approach will best serve your organization’s success.
