MSP vs. in-house IT: an honest comparison
There is no universally right answer. It depends on your business size, budget, and what you actually need IT to do. Here is the honest version.
In-house IT makes sense if
- You have more than 50 to 75 employees and need full-time coverage
- Your IT requirements are highly specialized and industry-specific
- You have regulatory requirements that mandate on-site staff
- You need someone in the building eight hours a day
- Your IT spend justifies a $70K+ salary plus benefits and tools
An MSP makes sense if
- You have fewer than 50 employees and cannot justify a full-time hire
- You want access to a full team of specialists (networking, cybersecurity, cloud) instead of one generalist
- You want predictable monthly IT costs instead of salary overhead
- Your current IT person is overloaded or you rely on an hourly "IT guy"
- You want someone proactively watching your systems, not just fixing breaks
The real cost comparison
| In-house IT hire | MSP | |
|---|---|---|
| Base cost (annual) | $70K to $120K salary | $720 to $2,400+/mo (per user basis) |
| Benefits and overhead | $15K to $30K additional | Included |
| Tools and software | $5K to $20K/year | Included |
| Training and certs | $3K to $10K/year | Included |
| Coverage depth | One generalist | Full team of specialists |
| After-hours coverage | Extra cost or not included | Depends on plan |
| Vacation / sick coverage | Zero coverage gaps | Always covered |
| Predictability | Salary is fixed, but tools and projects vary | Flat monthly rate |
Ranges vary by market, experience level, and specific requirements. Orlando area salary data from industry benchmarks.
The honest take
For most businesses under 50 employees, an MSP costs less than an in-house hire when you factor in total employment costs, tool licenses, and the depth of specialization. A single IT person cannot be an expert in networking, cybersecurity, cloud infrastructure, and end-user support simultaneously.
For businesses approaching 75 to 100 employees, a hybrid model often makes the most sense: a co-managed arrangement where an internal IT coordinator works alongside an MSP. The MSP provides the toolset, depth, and backup coverage. The internal person provides presence and institutional knowledge.
Above 100 employees with specialized IT requirements, a full in-house team often makes sense, possibly supplemented by an MSP for specific functions like cybersecurity.
Let’s talk
Not sure which model fits your business?
Get a free consultation. We will tell you honestly whether an MSP makes sense for you, and if it does not, we will say so.