Hiring an IT Person vs. Outsourcing to an MSP: Which Is Better for SMBs?

For small and mid-sized businesses looking to grow, reliable IT support isn’t optional, it’s essential. But when it comes to managing technology, should you hire an in-house IT person or outsource to a Managed Service Provider (MSP)? Let’s break down the costs and benefits.

The Cost of an In-House IT Employee

Hiring even a single IT professional comes with a significant price tag. On average, salaries range from $55K to $95K per year, and that’s before benefits, training, and tools. Once fully loaded, you could easily be paying $80K to $120K annually. And while an in-house hire is dedicated to your business, no single person can cover every area like helpdesk, cybersecurity, networking, and compliance.

The Cost of an IT MSP

MSPs typically charge on a per-user or flat-rate monthly model. For most SMBs, this works out to $36K to $120K per year, depending on company size and services included. The benefit? You get a whole team of specialists for helpdesk support, cybersecurity experts, cloud administrators, and even strategic guidance, without the cost of multiple full-time employees.

Which Is Right for You?

• In-house IT makes sense if you’re a larger business (100+ employees) or need someone onsite every day.

• MSPs are usually the smarter choice for SMBs under 100 employees, offering predictable costs, broader expertise, and reduced risk if your IT person leaves.

Bottom line: For most SMBs, outsourcing IT to a managed service provider is more cost-effective, scalable, and secure than hiring a single IT employee.