IT MSP vs. In-House IT: Outsourcing is More Cost Effective Than You Think!

For many businesses with up to 100 employees, in-house IT management is a constant balancing act for leadership. You need reliable technology, strong cybersecurity and fast support, but hiring an in-house IT team can be expensive and difficult to scale. Plus, simply making a quality IT hiring decision can be challenging when you or your team don’t possess excellent IT skills yourself.
The key decision to keep IT in-house vs. outsourcing is often a financial one. Many business owners assume that keeping IT in-house is more affordable than hiring an IT Managed Service Provider (MSP)—but that’s not always the case. In fact, outsourcing IT to an MSP can provide real cost savings while also delivering substantial incremental value.
Let’s break down the numbers of the outsourced MSP vs. in-house IT decision so you can make the best choice for your business.
The True Cost of Hiring an In-House IT Team
If you're considering hiring an internal IT person, it’s essential to understand the full cost of employment, not just the salary. Here's what you can expect to pay for a single IT manager (estimates only, may vary by geographic location):
IT Manager Expense | Estimated Annual Cost |
---|---|
Base Annual Salary | $65,000 - $85,000 |
Benefits (Healthcare, 401k, Taxes, PTO, etc.,) | $20,000 - $30,000 |
Ongoing Training & Certifications | $3,000 - $5,000 |
Total Annual Cost Per IT Employee | $88,000 - $120,000+ |
And that’s just to add one new IT employee! If your business grows, you may need an entire IT staff and new IT solutions to cover specialized skills like cybersecurity, cloud management and compliance.
Even worse? If your single IT person quits, gets sick or goes on vacation, your entire business is left exposed with no support. Just typing that last sentence induced a significant amount of stress! The good news is there’s a better way.
The Cost Savings and Added Value of an IT MSP
Now, let’s compare this to outsourcing your IT services. With an MSP, you gain access to an entire team of experienced IT professionals—at a fraction of the cost of a single in-house IT hire.
For example, a fully managed IT service package for a company with 50 employees using PCs typically costs between $40,000 - $50,000 per year.
That’s savings of $48,000 - $70,000 for an entire team of people compared to the numbers for the one in-house IT person based on the costs listed in the table above. Those savings are REAL dollars you can reallocate to other strategic initiatives within your business to help drive growth.
And don’t forget, while you are saving money you are adding value. An MSP’s fully managed IT service gains you:
- 24/7 Monitoring & Support (No “sick days” or PTO gaps)
- Proactive Maintenance & Patching (Preventing issues before they disrupt business)
- Cybersecurity Protection & Compliance (Multi-layered security that’s always up to date, 24/7/365 proactive coverage by a Security Operations Center)
- Cloud & Infrastructure Management (Scaling IT with your business)
- Access to a Full Team of Experts (Specialists in networking, security, cloud and more)
MSP vs. In-House IT: Which Is Right for Your Business?
When an MSP Is the Better Choice:
- If you want 24/7/365 IT support from a team of skilled professionals at a predictable monthly cost without hiring an expensive team.
- If you can’t afford downtime and need proactive maintenance instead of a break-fix approach.
- If you value security and compliance but don’t have the budget for a dedicated cybersecurity specialist.
- If you need easily scalable IT support that flexes with the ever changing needs of your business.
When Hiring In-House IT Makes Sense:
- If you’re a large company (100+ employees) that needs dedicated full-time IT personnel on-site.
- If you require IT professionals to support specialized in-house applications that an MSP may not manage as effectively.
- If your IT budget can comfortably support multiple IT professionals to cover security, helpdesk, compliance and cloud management.
If you do decide to hire your first in-house IT employee, know that an MSP can still play a very valuable role in your success. That one IT employee will have a lot of ground to cover inside your organization, and a lot of things to stay educated on from the outside IT world. Partnering with an MSP to support your in-house IT employee sets both them and your company up for even more success.
The Next Step: Get a Free IT Consultation
If you’re unsure whether hiring in-house IT or outsourcing to an MSP is the right choice, let’s talk. We’ll provide a customized cost comparison based on your business size, industry, and IT needs—so you can make an informed decision about the best IT strategy for your business.
Contact us today to setup a free consultation to see if outsourcing your IT is the right fit.






