One of the most common questions we hear from growing businesses is whether to hire an in-house IT person or outsource to a managed IT provider. Both models can work — but they suit different businesses at different stages, and the total cost comparison often surprises people.
Here's an honest breakdown of both options so you can make the right decision for your business.
The real cost of in-house IT
The visible cost of hiring an IT person is their salary — typically £35,000 to £55,000 per year for a competent generalist in the UK. But the true cost is higher:
- Salary + employer NI + pension contributions (add approximately 20–25%)
- Hardware, software licences, and tools they need to do their job
- Training and certifications (technology evolves constantly)
- Cover during holidays, sickness, and eventual resignation
- One person has limited knowledge breadth — you may still need specialists
Total annual cost for a single in-house IT employee typically runs £55,000–£75,000, and you still have single points of failure for holidays and illness.
What managed IT actually costs
A managed IT service for a business of 20–30 staff typically costs £2,000–£4,000 per month — £24,000–£48,000 per year. For that you get a team rather than an individual, 24/7 coverage, documented processes, multiple levels of expertise from helpdesk to senior engineer, and no gaps for holidays or sickness.
When in-house IT makes sense
In-house IT works well when you have complex, bespoke systems that require intimate knowledge of your specific environment, when you're a large organisation (typically 100+ staff) with enough volume to justify a full IT team, or when regulatory requirements demand on-site presence. For most businesses under 100 staff, the economics rarely favour in-house.
When managed IT makes sense
Managed IT is typically the right choice for businesses of 5 to 150 staff who need reliable, professional IT support without the overhead of a full in-house team. You get broader expertise, 24/7 availability, predictable monthly costs, and a provider whose business model is built around keeping your IT working.
The hybrid model
Some businesses run a hybrid: a single IT coordinator in-house for day-to-day liaison and user support, backed by a managed IT provider for infrastructure, security, and complex issues. This gives you the best of both worlds — internal familiarity with a team's needs, combined with external expertise and 24/7 coverage.
Ask yourself: when your IT person is on holiday or off sick, what happens? If the honest answer is "things break and nobody fixes them", you have a coverage problem that managed IT solves by design.
"Most of our clients tried in-house first. They come to us when they realise one person — however good — can't cover everything, be available 24/7, and stay current across security, cloud, networking, and all the rest."
Making the switch
If you're currently using an in-house IT person and considering a managed model — or vice versa — the transition doesn't have to be disruptive. Our onboarding process is designed to document your environment thoroughly and get to know your systems before we take over support responsibility. Most clients are fully onboarded within two to four weeks.
Get in touch with our team for an honest conversation about what model suits your business — there's no sales pressure, just practical advice.