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

FeatureIn-House IT StaffOutsourced MSP
Annual CostΒ£45,000-70,000 (salary + NI + pension + training)Β£12,000-80,000 (scales with headcount)
Coverage Hours37.5 hrs/week minus holidays and sick days24/7/365 monitoring, business hours helpdesk
Expertise BreadthOne person's knowledgeTeam of specialists across all disciplines
Security CapabilityGeneralist levelDedicated security tools and expertise
Holiday/Sickness CoverNo cover - you're exposedTeam-based - always someone available
ScalabilityHire another person (doubling cost)Add users incrementally at marginal cost
On-Site PresenceAlways availableSame-day visits when needed
Strategic PlanningIf 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

  1. How many staff do you have? Under 30, outsourced almost always wins on value.
  2. How complex is your on-site infrastructure? Lots of servers and networking gear may need hands-on presence.
  3. Can you afford downtime? If not, you need 24/7 coverage - which means a team, not a person.
  4. How sensitive is your data? Proper security requires specialist expertise that's hard to find in one hire.
  5. Are you growing? An MSP scales with you without recruitment cycles.

Common Questions

Answers to questions we hear most often

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