In-House IT vs. Managed Services: What Saves More?

If you’ve ever stared at your IT budget and wondered, “Is this the smartest way to handle our tech needs?”—you’re not alone. As a business owner or office manager, you’re tasked with keeping things running smoothly, all while keeping costs under control. One of the biggest decisions you might face is whether to keep IT in-house or outsource it to a managed service provider (MSP). Let’s break it down in plain English—costs, risks, benefits, and a few real-world insights.

What’s the Difference, Really?

Before we get into the numbers, let’s clarify what each option looks like.

In-House IT

This means hiring one or more IT professionals as part of your staff. They’re on your payroll, working in your building (or remotely), and familiar with your specific systems and staff. That familiarity can be great—but it also means you’re responsible for their training, tools, and career development.

Managed IT Services

Instead of hiring internally, you pay a monthly fee to an external team that handles your IT. They monitor your systems, troubleshoot issues, secure your network, and often offer support 24/7. MSPs bring broad expertise and tools to the table without becoming part of your payroll.

Cost Breakdown: In-House vs. Outsourced

Let’s talk dollars and cents.

The Cost of In-House IT

• Salaries: A decent IT technician can cost $60K to $90K per year. If you need a network admin or security expert, expect to pay more.
• Benefits: Healthcare, vacation, retirement—add another 20–30% to that salary.
• Training: IT evolves fast. If your staff doesn’t keep up, they fall behind. Ongoing certifications and conferences aren’t cheap.
• Tools: Antivirus, backup software, help desk tools—it all adds up.

I once worked with a construction company that hired a junior IT guy straight out of college. He was sharp, but he had never handled enterprise firewalls or managed remote backups. By the time they realized this, they’d already spent thousands fixing what had gone wrong.

The Cost of Managed IT

• Flat Monthly Fee: Typically, you pay based on users or devices (e.g., $100–$200 per user per month).
• No Surprise Payroll Expenses: No health benefits, time-off coverage, or hiring costs.
• All-Inclusive or Tiered Plans: Many MSPs offer packages—basic support, advanced cybersecurity, compliance support, etc.—so you only pay for what you need.
• Up-to-Date Tools Included: Most MSPs include enterprise-grade tools as part of their package.

The Hidden Costs Most People Forget

Here’s where the rubber meets the road.

Downtime

When your systems go down, productivity halts. If your in-house IT team is out sick or offsite, the delay costs more than you think. MSPs usually catch problems before they snowball.

Quick Story: A client of mine in the legal industry used to have just one IT manager. When he went on vacation, the server crashed. It took two days to recover, during which they couldn’t access client files. With an MSP, they’d have had backup support in minutes.

Cybersecurity

Cyber threats evolve by the hour. A single overlooked software patch or outdated firewall can lead to a ransomware disaster.

• In-house teams often struggle to keep up unless security is their sole job.
• MSPs live and breathe cybersecurity. Most have threat detection systems running 24/7.

Scalability

Adding a new location? Hiring a bunch of people? In-house IT means hiring more staff and buying more hardware. MSPs can usually scale up (or down) your services quickly without huge upfront costs.

Which Is Better for Your Business?

Small Businesses (10–50 Employees)

You probably don’t need a full-time IT person on staff. Managed IT is more cost-effective, scalable, and provides round-the-clock support.

Mid-Sized Businesses (50–200 Employees)

This can go either way. If you already have an IT lead, an MSP can act as backup or help with specialized tasks (cloud migration, compliance, etc.).

Industry-Specific Needs

• Healthcare: You’ll need HIPAA compliance, strong backups, and patient data protection.
• Legal: Confidentiality and uptime are critical.
• Retail: Fast POS systems, inventory tracking, and payment security matter.

MSPs often specialize in these sectors and offer tailored solutions, which can be hard to replicate in-house without hiring an expert.

The Hybrid Approach: Best of Both Worlds?

Some businesses combine both strategies:

• Keep a small in-house IT team for day-to-day tasks and employee support.
• Partner with an MSP for security, backups, monitoring, and after-hours coverage.

This setup gives you familiarity and broader expertise. Plus, it frees your internal team to focus on business-specific tech projects.

Final Verdict: What Saves More?

If you’re strictly looking at cost, MSPs generally win—especially for small to midsize businesses. You get access to a wide range of expertise, tools, and support without hiring a full team. But beyond cost, consider:

• Speed of response
• Cybersecurity readiness
• Scalability
• Stress level (Let’s be honest—fewer fires to put out = better workdays.)

And remember: downtime, data loss, and security breaches can cost more than any IT budget.

Let’s Talk About Your Setup

If you’re unsure whether your current IT structure is the right fit, it’s worth taking a closer look. You don’t have to commit to a full overhaul overnight. Start with a consultation, or ask your provider for a detailed comparison.

We help companies like yours make smarter tech decisions every day. Whether you stick with in-house, outsource completely, or blend the two—we’ll help you find what saves the most time, money, and headaches.