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Managed IT

In-House IT vs Managed Services: A Real Cost Comparison for 2025

When businesses think about outsourcing IT, the first question is always cost. That's fair. But most comparisons leave out a lot of what in-house IT really costs.

The true cost of in-house IT

One mid-level IT generalist in the U.S. costs roughly $65,000 to $85,000 a year in salary. Benefits (health insurance, 401(k), PTO) usually add another 25 to 35%. That puts the all-in cost at $82,000 to $115,000 a year for one person who can't cover everything, can't be available 24/7 and has gaps in what they know.

Then add recruiting costs when they leave (often 1 to 2 times annual salary), training and certifications ($2,000 to $8,000 a year), software and tooling licenses ($3,000 to $10,000 a year), and the management time spent dealing with IT issues.

What managed services actually cost

Managed IT for a 30-person company usually runs $3,000 to $7,000 a month depending on what's included. That's $36,000 to $84,000 a year for a whole team, not one person, with 24/7 coverage, a wider range of expertise and no recruiting or turnover risk.

"When clients actually run the numbers, managed services almost always win on cost, and that's before you factor in the expertise gap."

James W., CEO

Beyond cost: expertise

No single IT hire can be an expert in networking, cloud, security, compliance and help desk all at once. With a managed service you get specialists in each area, someone to escalate to when something complicated comes up, and knowledge that doesn't walk out the door when an employee quits.

When in-house makes sense

For companies with more than about 200 employees and complex, specialized infrastructure, a hybrid model often works best: an internal IT director plus an MSP for specific functions. At that size, the internal person handles vendors and strategy while the MSP handles day-to-day execution and 24/7 coverage.

Want to run the numbers for your business? Contact Sentiva for a free IT cost assessment.

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