Worked for both kinds and for the same flight department. 10+ aircraft in this case. I feel certain that in this specific situation the pilots, mechanics and support personnel would crawl through a mile of broken glass to get the managed department back in lieu of the in-house operation. The money saved by the insurance, fuel and other bulk discounts more than offsets the cost of the management company fees. The worst part of the in-house operation in this case was not anyone in the flight department but rather the constant interference from coprporate officers/owners from headquarters that were by their own admission "clueless" about aviation in general. The bean counters, HR and a host of other folks work 24/7 to destroy the moral and working conditions at this flight department. I'm sure this is not a constant throughout the industry, but in this case you can take it to the bank for sure. Heavy turnover says it all but they just don't get it.