In-House IT vs Outsourced: Which Makes Sense?
As your business grows, the question inevitably arises: should you hire your own IT person or outsource to a managed service provider? Both options have genuine merits, and the right answer depends on your business size, complexity, and growth trajectory. Here's a straightforward comparison to help you decide.
The Options
A straightforward comparison of your choices
In-House IT Staff
Employ one or more IT professionals directly. They work exclusively for your business, know your systems intimately, and are available on-site.
Advantages
- On-site presence - immediate physical access when hardware needs hands-on attention
- Deep knowledge of your specific systems, workflows, and team
- Part of your team culture - understands business context
- Available for ad-hoc requests and quick fixes throughout the day
- Can handle physical tasks (cabling, hardware setup, office moves)
Disadvantages
- Expensive - salary, NI, pension, training, and holidays for one person costs Β£40,000-65,000+
- Single point of failure - when they're ill, on holiday, or leave, you have no IT support
- Limited expertise - one person can't be expert in security, networking, cloud, and desktop support
- No 24/7 coverage unless you hire multiple people
- Training and certification costs are ongoing
- Recruitment risk - hiring the wrong person is expensive and disruptive
Best for: Businesses with 50+ staff, complex on-site infrastructure, or specialist requirements that demand dedicated, physically present IT expertise.
Outsourced MSP
A managed service provider acts as your IT department. A team of specialists provides support, monitoring, security, and strategic planning for a fixed monthly fee.
Advantages
- Team of specialists - security experts, cloud engineers, networking professionals
- 24/7 monitoring and out-of-hours support coverage
- No recruitment, HR, or training overhead
- Predictable monthly cost vs. salary + overheads
- Business continuity - the team doesn't go on holiday or call in sick
- Vendor relationships and buying power for hardware and licences
Disadvantages
- Not physically on-site (though same-day onsite visits are available)
- May not understand your business as deeply initially
- Dependent on the quality of the provider you choose
- Shared resource - you're not their only client
Best for: Businesses with 5-100 staff who need enterprise-level IT support and security without the cost of building an internal team.
Side-by-Side Comparison
Feature-by-feature breakdown
| Feature | In-House IT Staff | Outsourced MSP |
|---|---|---|
| Annual Cost | Β£45,000-70,000 (salary + NI + pension + training) | Β£12,000-80,000 (scales with headcount) |
| Coverage Hours | 37.5 hrs/week minus holidays and sick days | 24/7/365 monitoring, business hours helpdesk |
| Expertise Breadth | One person's knowledge | Team of specialists across all disciplines |
| Security Capability | Generalist level | Dedicated security tools and expertise |
| Holiday/Sickness Cover | No cover - you're exposed | Team-based - always someone available |
| Scalability | Hire another person (doubling cost) | Add users incrementally at marginal cost |
| On-Site Presence | Always available | Same-day visits when needed |
| Strategic Planning | If they have time (often consumed by daily tickets) | Structured quarterly reviews and roadmap |
Our Verdict
For most businesses with 5-50 staff, outsourced IT support delivers significantly more capability per pound spent. The sweet spot for hiring in-house is typically 50-100+ staff, where the volume of on-site work justifies a dedicated person - often working alongside an MSP in a co-managed model.
The Real Cost Comparison
A common mistake is comparing an MSP's monthly fee against just a salary. The true cost of an in-house IT person includes:
- Salary: Β£30,000-50,000 depending on experience and location
- Employer's NI: ~Β£4,000-6,500
- Pension contributions: ~Β£1,200-2,000
- Training and certifications: Β£2,000-5,000/year to stay current
- Tools and licences: RMM, security tools, admin platforms - Β£3,000-8,000/year
- Recruitment costs: Β£5,000-10,000 when they leave (agency fees, interviews, onboarding)
Total: Β£45,000-80,000/year for one person who can't cover 24/7, can't be expert in everything, and creates a single point of failure.
An MSP supporting the same 20-person business typically costs Β£15,000-25,000/year and provides a team, 24/7 monitoring, enterprise security tools, and strategic planning.
The Co-Managed Model
Increasingly, businesses with 30-100+ staff are choosing a third option: hire an internal IT person AND partner with an MSP. The internal person handles:
- Day-to-day helpdesk and quick fixes
- Physical on-site tasks
- User onboarding and offboarding
- Project management for internal initiatives
The MSP handles:
- 24/7 monitoring and alerting
- Security management (EDR, SIEM, email filtering)
- Backup and disaster recovery
- Specialist projects (cloud migrations, network upgrades)
- Strategic IT planning and vendor management
This gives you the best of both worlds - on-site presence with enterprise-level security and monitoring.
Questions to Ask Before Deciding
- How many staff do you have? Under 30, outsourced almost always wins on value.
- How complex is your on-site infrastructure? Lots of servers and networking gear may need hands-on presence.
- Can you afford downtime? If not, you need 24/7 coverage - which means a team, not a person.
- How sensitive is your data? Proper security requires specialist expertise that's hard to find in one hire.
- Are you growing? An MSP scales with you without recruitment cycles.
Common Questions
Answers to questions we hear most often
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