When your business reaches 20, 50, or 100 employees, the question becomes unavoidable: should you hire internal IT staff or partner with a managed service provider? The managed IT services vs in house IT decision affects everything from monthly budgets to how quickly you recover from system failures. Most growing companies find that managed services deliver better value, faster support, and stronger security at lower total cost than building an internal team.
Cost Comparison: Fixed vs Variable Expenses
The financial differences between managed IT and in-house support become clearer when you account for all expenses, not just salaries.
Managed IT services use a predictable subscription model. A 50-person company typically pays $60,000 to $180,000 annually for comprehensive coverage, including help desk, security monitoring, patch management, and strategic planning. This fee covers an entire team of specialists without additional costs for benefits, training, or equipment.
In-house IT involves multiple expense categories:
- Salaries: $90,000 to $150,000 per IT manager, plus 30% in benefits
- Training and certifications: $3,000 to $8,000 annually per employee
- Software and tools: $5,000 to $15,000 per year
- Recruitment and turnover costs when staff leave
For a single in-house employee, total annual costs often exceed $125,000 before considering coverage gaps during vacations, sick days, or departures. Meanwhile, managed services provide 24/7 coverage with multiple specialists for less than the cost of one internal hire.
Hidden Costs That Add Up
In-house IT teams face expenses that managed services absorb through economies of scale:
- Emergency repairs and after-hours support
- Software licensing for monitoring and security tools
- Hardware refresh cycles for servers and network equipment
- Compliance requirements that require specialized knowledge
Managed service providers spread these costs across multiple clients, making enterprise-grade solutions affordable for smaller businesses.
Scalability and Growth Flexibility
Growing companies need IT support that scales quickly without lengthy hiring processes or major capital investments.
Managed services scale immediately. When you add 50 new employees or open a second location, your provider can typically accommodate the expansion within 21 days. Contract adjustments handle seasonal fluctuations or rapid growth spurts without long-term commitments to fixed staff levels.
In-house scaling takes months. Finding qualified IT professionals requires 3 to 9 months for recruiting, interviewing, and onboarding. During growth periods, existing staff become overextended, leading to slower response times and increased downtime risks.
When Rapid Scaling Matters Most
Companies expanding into new markets, acquiring other businesses, or experiencing seasonal growth benefit most from managed services’ instant scalability. Manufacturing companies adding production lines, professional services opening branch offices, and retailers preparing for peak seasons avoid the delays of internal hiring.
Security and Expertise Advantages
Cybersecurity threats evolve faster than most in-house teams can keep pace with training and tool updates.
Managed IT providers maintain teams of specialists focused on specific areas:
- Security analysts who monitor threats 24/7
- Network engineers who optimize performance
- Cloud specialists who manage Microsoft 365 and backup systems
- Compliance experts who understand industry regulations
This specialization means your business gets enterprise-level security without hiring multiple full-time experts.
In-house teams often struggle with breadth of knowledge. A single IT manager handles everything from password resets to network security, making it difficult to stay current on rapidly changing threats. Vacation time and sick days create coverage gaps that leave systems vulnerable.
Proactive vs Reactive Support
Managed services excel at preventing problems before they cause downtime. Automated monitoring, regular patch management, and proactive maintenance reduce the likelihood of system failures that disrupt business operations.
In-house teams, especially smaller ones, often operate reactively due to limited bandwidth. They respond to problems after they occur rather than preventing them through continuous monitoring and maintenance.
When In-House IT Makes Sense
Despite the advantages of managed services, some situations favor internal IT teams:
- Highly specialized systems that require constant on-site attention
- Proprietary software that external providers cannot support effectively
- Companies with 200+ employees where dedicated staff becomes cost-effective
- Industries with strict data residency requirements that limit external access
Hybrid Approaches
Many growing companies adopt hybrid models that combine internal coordination with external expertise. An internal IT manager handles day-to-day user support while outsourced IT support options provide specialized services like security monitoring, backup management, and strategic planning.
Making the Right Choice for Your Growth Stage
The optimal IT support model depends on your current size, growth trajectory, and operational requirements.
Choose managed services if you:
- Have 10 to 150 employees
- Experience rapid or unpredictable growth
- Lack specialized IT expertise internally
- Want predictable monthly costs
- Need 24/7 support coverage
- Prioritize cybersecurity and compliance
Consider in-house IT if you:
- Have 200+ employees
- Require constant on-site support
- Use highly proprietary systems
- Have complex regulatory requirements
- Can afford redundant staff for coverage
Evaluate hybrid models if you:
- Want some internal control with external expertise
- Have mixed requirements across locations
- Need gradual transition from current setup
- Have budget constraints that require phased implementation
What This Means for Your Business
The managed IT services vs in house IT decision ultimately comes down to getting the right level of support at the right cost for your growth stage. Most companies between 20 and 150 employees find that managed services provide better coverage, stronger security, and lower total costs than building internal teams.
The key is ensuring that whatever approach you choose can scale with your business without creating operational bottlenecks or security gaps. Proper IT support—whether managed or internal—should reduce downtime, improve security, and free your team to focus on core business activities rather than technical problems.
When evaluating options, consider not just the monthly fee or salary cost, but the total value delivered through uptime, security, and operational efficiency. The right IT strategy becomes an enabler of business growth rather than a constraint on your resources.
Ready to evaluate your current IT support model? Contact TECHZN to discuss how managed services can support your growth plans with predictable costs and enterprise-level expertise. Our team helps growing businesses make informed decisions about their technology infrastructure.
