When businesses consider outsourcing IT, the first question is always cost. And it's a fair one. But most cost comparisons fail to account for the full picture of what in-house IT actually costs.
The True Cost of In-House IT
A single mid-level IT generalist in the U.S. costs roughly $65,000โ$85,000 per year in salary โ before you factor in benefits (health insurance, 401k, PTO) which typically add 25โ35% on top. That puts the all-in cost at $82,000โ$115,000 per year for one person who can't cover everything, can't be available 24/7, and has gaps in expertise.
Add to that: recruiting costs when they leave (typically 1โ2x annual salary), training and certification costs ($2,000โ$8,000/year), software and tooling licenses ($3,000โ$10,000/year), and the opportunity cost of management time spent on IT issues.
What Managed Services Actually Costs
A managed IT service for a 30-person company typically runs $3,000โ$7,000/month depending on services included. That's $36,000โ$84,000/year for a full team โ not one person โ with 24/7 coverage, a broader range of expertise, and no recruiting or turnover risk.
"When clients actually run the numbers, managed services almost always win on cost โ and that's before you factor in the expertise gap." โ James W., CEO
Beyond Cost: The Expertise Factor
No single IT hire can be expert in networking, cloud infrastructure, cybersecurity, compliance, and helpdesk simultaneously. With a managed service, you get specialists in each area โ escalation paths when something complex comes up, and institutional knowledge that doesn't walk out the door when an employee quits.
When In-House Makes Sense
For companies over ~200 employees with complex, specialized infrastructure, a hybrid model (internal IT director + MSP for specific functions) often makes the most sense. At that scale, the internal person handles vendor relationships and strategic decisions while the MSP handles execution and 24/7 coverage.
Want to run the numbers for your specific situation? Contact Sentiva for a free IT cost assessment.