Hiring a single full-time IT person costs $80,000-$120,000 in salary alone — and they still cannot provide 24/7 coverage or expertise across security, cloud, and compliance. Here is how managed services compare on every dimension that matters.
The in-house IT versus managed services decision is one of the most impactful technology choices a growing business will make. Having helped over 200 businesses navigate this decision since 2016, here is our detailed comparison.
Cost comparison: A single in-house IT person costs $80,000-$120,000 in salary, plus $20,000-$30,000 in benefits, training, and tools — totaling $100,000-$150,000 annually. They provide coverage during business hours only, expertise limited to their individual skillset, and create a single point of failure when they are on vacation or leave. A managed IT services engagement for the same company typically costs $40,000-$80,000 annually and provides 24/7 coverage, a full team of specialists across security, cloud, networking, and compliance, guaranteed response times via SLA, and no coverage gaps for vacation, sick leave, or turnover.
When in-house IT makes sense: companies with 500+ employees where technology is the core product, organizations with unique proprietary systems requiring dedicated expertise, and businesses with budget for a full IT department of 3-5 people. When managed services make sense: businesses with 10-500 employees, organizations in regulated industries needing compliance expertise, companies wanting predictable IT costs, and businesses that need 24/7 support without 24/7 staffing costs.
