One of the biggest technology decisions a business makes is whether to hire an internal IT person or outsource IT to a managed IT services provider (MSP). The right choice depends on your company size, budget, and how much technology your business relies on.
This guide breaks down Managed IT vs In-House IT in simple terms so you can decide what makes sense for your business.
What Is In-House IT?
In-house IT means you hire your own employee (or team) to manage your technology.
They typically handle:
- Help desk support
- Setting up computers
- Managing servers and network
- Working with software vendors
- Handling basic security
- Troubleshooting issues
This works well for larger companies that need full-time IT support every day.
What Are Managed IT Services?
Managed IT services means you outsource IT support to a company for a fixed monthly fee.
Managed IT providers typically handle:
- Help desk support
- 24/7 monitoring
- Cybersecurity
- Backups
- Patch management
- Vendor management
- Network management
- IT planning and budgeting
This is usually more cost-effective for small and mid-sized businesses.
Cost Comparison
| IT Option | Typical Cost |
|---|---|
| In-House IT Employee | $70,000 – $120,000+ per year |
| Managed IT Services | $100 – $250 per user/month |
For a 20-person company:
- In-House IT: ~$80,000/year
- Managed IT: ~$24,000 – $60,000/year
Managed IT is often cheaper because you get a whole team for less than one salary.
Pros and Cons
In-House IT – Pros
- Onsite every day
- Knows your business well
- Immediate help
- Good for large companies
In-House IT – Cons
- Expensive
- One person cannot know everything
- No 24/7 monitoring
- Vacation/turnover risk
- Limited cybersecurity expertise
Managed IT – Pros
- Predictable monthly cost
- Access to a full team
- 24/7 monitoring
- Cybersecurity included
- Backups and disaster recovery
- Scales as you grow
Managed IT – Cons
- Not onsite every day
- Response time instead of immediate desk-side help
- Quality varies by provider
Hybrid Option (Very Common)
Many businesses use a hybrid model:
- One internal IT person
- One managed IT company for support, security, and monitoring
This is very common for companies with 50+ employees.
Quick Rule of Thumb
| Company Size | Best Option |
|---|---|
| 1–20 employees | Managed IT |
| 20–50 employees | Managed IT or Hybrid |
| 50–150 employees | Hybrid |
| 150+ employees | In-House IT Team |
There is no one-size-fits-all answer, but for most small and mid-sized businesses, managed IT services provide more support, better security, and more predictable costs than hiring one internal IT person.
The most important thing is to compare options, pricing, and services before making a decision.
If you're evaluating IT support options, platforms like TechSupportBids let businesses submit their IT needs once and receive multiple proposals from IT providers, so you can compare pricing and services side by side.