Some say that if you want the best outcome you should take matters into your own hands. This is not always true. Sometimes it’s better to let the experts do their thing and then reap the benefits. This applies to industries and manufacturers as well.

A way of enacting this philosophy is by choosing to use a monitoring system. It’s one of those things that, if outsourced, can really reduce a manufacture’s burden. There are various types of monitoring systems available on the market. In-House and third-party are the two most popular options. So let’s have a look at both of them and explain what should be considered when planning to install one.

How to Choose Between a Third-Party or an In-House Monitoring System?

Both In-house and third-party monitoring systems have benefits. In general, in-house monitoring systems are considered good because they are custom built. When manufacturers have the system tailor-made, their specific needs are taken into consideration. This way, the manufacturer has full control over the system, from its design to its implementation. This is one of the biggest advantages of an in-house monitoring system. Manufacturers don’t have to compromise over anything at any time.

Some other advantages of an In-House monitoring system are:

  • Personalized custom monitoring system

  • More control over data since it is stored in-house

  • 100% self-authority and control over the system

But, an in-house monitoring system involves many costs and resources. For this reason, most companies opt for third-party monitoring system solutions. Any manufacturer willing to opt for an in-house monitoring system should ask themselves a few questions:

  • 1. Is it worth spending the time and the money in creating a monitoring system from scratch?
  • 2. Is the investment behind creating this system from design to implementation giving the desired ROI?

  • 3. Is the in-house system going to be much better than giving the contract to a third party?

  • 4. Are we utilizing the labor hours and budgets wisely?

  • 5. Do we have all the necessary elements in place internally (IT structure, data storage, and employees to set up the system, update it, etc.)?

If the answers to these questions are positive and the company has very specific needs in terms of monitoring, then opting for an in-house system is a good idea. You should build your own system if it gives you a competitive advantage.

On the other hand, among the many advantages of Third-party systems, one of the most important ones is that the system is ready to be deployed quickly and efficiently. The software, built by a third-party company, is already pre-programmed into the hardware and ready to be installed. Some features can also be programmed to meet your specific needs. Manufacturers just need to buy the system, explain their needs and everything else will be handled by the third-party company. The main advantages of third-party monitoring systems are:

  • No need for additional IT infrastructure on the floor

  • Better use of labor time (e.g. analyzing data and obtaining insights instead of updating the system)

  • Third-party handles troubleshooting, system issues, and updates

  • Less expensive solution, in some cases

  • Ready to implement shortly, in some cases

  • Caters to all the general and specialized needs as well

  • Pay as you go service possible, with data storage and security

  • Quicker ROI since there is less implementation costs and time

  • Improved data security with external storage (less risk of hacking)

Although the third-party monitoring system might seem like a reasonable choice, manufacturers are best suited to decide according to their needs. All that said, a manufacturer should still focus on its primary product while outsourcing other peripheral systems to be more efficient. The distribution of tasks helps focus and utilize resources efficiently. Why spend more resources generating systems that are available on the market at low rates if you don’t have very specific needs? If your needs can be fulfilled by a third-party system, you can get full benefits just as well if you invest in a good monitoring system at an efficient cost. Think, Plan, and Invest in an efficient solution to ensure an edge in this competitive market with a third-party monitoring system like Clariprod.


  • K. Machnik, “Build vs. buy: Should you build in-house or choose a 3rd-party SaaS solution?,” 01 02 2019. [Online]. Available:

  • E. Thompson, “6 Major Benefits of Remote Machine Monitoring Systems,” 28 05 2020. [Online]. Available:

By Published On: October 21, 2021