The following article discusses the cost of a Managed IT Service Provider vs. in-house IT

The Cost of a Managed IT Service Provider vs IT

The cost of a Managed IT Service Provider vs. in-house IT

by Daniel Stockman




When it comes to planning an effective IT strategy, many business owners prefer to hire a dedicated internal IT staff to take care of their tech requirements rather than hire a third party managed IT service. However, for most business owners in Orlando, Fl and Tampa, Fl, the choice come down to cost and budget constraints.

A number of small business owners are under the misguided notion that an MSP or a managed service provider or managed IT support is extremely expensive. Many also have a hard time trusting outsiders and prefer to hire in-house IT personnel to ensure transparency.


Costs Associated with Managed IT Service Provider vs in-house IT

But are these facts really true? If the person you have on the payroll has little to no time to complete important tasks, your business operations are suffering because your tech is insufficient, your equipment has seen better days and you have software issues that are making your clients suffer as well, it might be time to hire a full-time IT employee.

However, another option is to hire an external IT support team to pick up the slack or balance the workload. In order to determine which one you should pick will probably come down to cost. Let’s compare the cost of hiring an internal IT team with hiring outsourced managed support.

If, for instance, you wish to hire a full time IT staff member for your internal team, then you need to look for a systems engineer who has at least 3 or at most 5 years of experience in the industry. At most, you can expect to pay them about $70,000 to $72,000 per year but that figure can vary depending on overhead costs, taxes, benefits, insurance and IT costs for each member.

In other words, if you take all of those aspects into account then you are looking at a $90,000 paycheck for a new IT member per year. Hiring one is up to you and your business requirements and if the cost outweighs the benefits, then it might be a good idea to hire in-house. However, if you have a limited budget then hiring managed network support might be a better idea.

Unlike in-house staff, an outsourced service does not require additional subscription costs which brings the cost of hiring one about $50,000 to $54,000 per year give or take. However, this sum can vary depending on the IT needs of your business and you may also have to pay additional fixed costs such as for new hardware or in case of relocation.


The bottom line…

Overall, the cost of hiring a managed service provider is less than that of hiring a full time IT staff member, but it all comes down to your needs and budget constraints. However, it would be a good idea to see what you are paying for by hiring the former versus your own IT staff.


Share your opinion. Do the benefits outweigh the costs?


i-Tech Support, Inc. – The Technology to Achieve More

Established in 1999, i-Tech Support, Inc. offers world-class technical support to help businesses achieve more. With divisions dedicated to managed IT support, advanced technology, cybersecurity, cloud services, network assessments, software and consulting, our full-service capabilities enable us to be a versatile technology partner for IT departments and businesses in Florida. We support you with the technology to achieve more.

Does your business need IT support? Contact i-Tech Support:

i-Tech Support, Inc.: D: 407-265-2000  |  W:  |  E:

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