When it comes to managing business technology, the decision between hiring in-house IT staff and partnering with a Managed Service Provider (MSP) can have a major impact on your bottom line, efficiency, and security. While in-house teams may seem like the obvious solution, the numbers and operational realities tell a different story.
Let’s break down the cost and benefit differences between these two models—with data to back it up.
💰 Cost Comparison
In-House IT Costs
Hiring even one full-time IT staff member includes:
Salary: $65,000 to $85,000 annually
Benefits: $20,000 to $30,000 per year in healthcare, PTO, and retirement
Training & Certifications: $3,000 to $5,000 annually per employee to keep skills current [1]
Recruitment & Onboarding: Hidden costs in time, hiring platforms, interviews, and ramp-up periods
Downtime or Gaps: When that one person is on vacation, out sick, or overwhelmed
Total yearly cost: $88,000 to $120,000+ per technician
Managed Service Provider (MSP) Costs
Most MSPs offer flat-rate, monthly pricing. For example:
A fully managed IT plan for a 50-user business typically ranges from $40,000 to $50,000 per year [1][2]
Includes support, monitoring, cybersecurity, backups, patching, helpdesk, and more
No hidden payroll, no benefit costs, and no surprises
Bottom Line: Companies can save $48,000 to $70,000 per year (or more) by outsourcing to an MSP instead of hiring just one full-time IT staffer [1].
⚙️ Efficiency & Expertise
MSPs Are Proactive
In-house teams often operate in a reactive mode—fixing problems as they arise. MSPs like Succeed Managed Services work differently: we monitor systems 24/7, apply patches, review logs, and prevent problems before they affect your business [3].
More Experts, More Experience
An in-house hire may be great at general desktop support but may lack depth in areas like cybersecurity, cloud migrations, compliance, or networking. MSPs employ a team of specialists across disciplines—so you get the right person for every situation [4].
Faster Response, Less Downtime
When you have one internal IT person, urgent issues can back up fast. MSPs offer helpdesk teams with defined SLAs, ensuring quicker resolution times and less lost productivity [5].
📈 Flexibility & Scalability
MSPs Scale With Your Business
Hiring and training internal staff every time you grow adds delays and expense. MSPs are designed to grow with you. Whether you add 5 users or 50, your service plan adjusts with minimal disruption [6].
Built-in Continuity
Employees quit. MSPs don’t. If an in-house tech leaves, you face recruiting delays and institutional knowledge loss. With an MSP like Succeed, you get documentation, backup support, and built-in coverage, even when team members rotate.
✅ Final Verdict: Outsourcing IT Saves Money and Delivers More Value
The numbers speak clearly: outsourcing IT to a provider like Succeed Managed Services offers substantial cost savings and significant operational advantages.
You spend less
You gain more experience
You get better coverage and faster support
And you avoid the HR burden of hiring, training, and retaining your own IT team
👉 Let’s talk about how your business could benefit from switching to a managed service model.
The Cost-Benefit Analysis of an IT Provider vs. In-House IT
When it comes to managing business technology, the decision between hiring in-house IT staff and partnering with a Managed Service Provider (MSP) can have a major impact on your bottom line, efficiency, and security. While in-house teams may seem like the obvious solution, the numbers and operational realities tell a different story.
Let’s break down the cost and benefit differences between these two models—with data to back it up.
💰 Cost Comparison
In-House IT Costs
Hiring even one full-time IT staff member includes:
Total yearly cost: $88,000 to $120,000+ per technician
Managed Service Provider (MSP) Costs
Most MSPs offer flat-rate, monthly pricing. For example:
Bottom Line: Companies can save $48,000 to $70,000 per year (or more) by outsourcing to an MSP instead of hiring just one full-time IT staffer [1].
⚙️ Efficiency & Expertise
MSPs Are Proactive
In-house teams often operate in a reactive mode—fixing problems as they arise. MSPs like Succeed Managed Services work differently: we monitor systems 24/7, apply patches, review logs, and prevent problems before they affect your business [3].
More Experts, More Experience
An in-house hire may be great at general desktop support but may lack depth in areas like cybersecurity, cloud migrations, compliance, or networking. MSPs employ a team of specialists across disciplines—so you get the right person for every situation [4].
Faster Response, Less Downtime
When you have one internal IT person, urgent issues can back up fast. MSPs offer helpdesk teams with defined SLAs, ensuring quicker resolution times and less lost productivity [5].
📈 Flexibility & Scalability
MSPs Scale With Your Business
Hiring and training internal staff every time you grow adds delays and expense. MSPs are designed to grow with you. Whether you add 5 users or 50, your service plan adjusts with minimal disruption [6].
Built-in Continuity
Employees quit. MSPs don’t. If an in-house tech leaves, you face recruiting delays and institutional knowledge loss. With an MSP like Succeed, you get documentation, backup support, and built-in coverage, even when team members rotate.
✅ Final Verdict: Outsourcing IT Saves Money and Delivers More Value
The numbers speak clearly: outsourcing IT to a provider like Succeed Managed Services offers substantial cost savings and significant operational advantages.
👉 Let’s talk about how your business could benefit from switching to a managed service model.
📚 Sources:
[1] Seifert Technologies. “IT MSP vs. In-House: Outsourcing Is More Cost Effective Than You Think.” https://www.seifert.com/it-msp-vs-in-house-it-outsourcing-is-more-cost-effective-than-you-think
[2] Austin Technology. “Is Managed IT Worth It? A Cost-Benefit Analysis.” https://austintechnology.com.au/blog/is-managed-it-worth-it-a-cost-benefit-analysis/
[3] Straight Edge Tech. “Cost Benefits of Managed IT vs. In-House IT.” https://straightedgetech.com/cost-benefits-of-managed-it-vs-in-house-it/
[4] Rethinking Computer Solutions. “Managed IT Services vs. In-House IT.” https://rethinkingcs.com/managed-it-services-vs-in-house-it/
[5] i3 Business Solutions. “Cost Effective Solutions: Managed IT vs. In-House Comparison.” https://www.i3businesssolutions.com/newsblog/blog/cost-effective-solutions-managed-it-vs.-in-house-it-comparison/
[6] WorkSmart. “Managed IT Services vs. In-House IT: Making the Right Choice for Your Business.” https://www.worksmart.com/managed-it-services-vs-in-house-it-making-the-right-choice-for-your-business/
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