IN-HOUSE VS. MANAGED IT SUPPORT
WHICH IS RIGHT FOR YOUR BUSINESS?
Many small and medium-sized businesses (SMBs) face a critical decision: Should they maintain an in-house IT team or partner with a Managed IT Service Provider (MSP)? Here's a side-by-side comparison to help you decide.
COMPARISONS
Costs 💰
In-House IT
Managed IT Support
upfront expenses
High (salaries, equipment, software)
Lower (monthly subscription model)
ongoing costs
Salaries, benefits, training, equipment upgrades
Predictable flat-rate pricing
hidden costs
Downtime during IT issues, recruitment costs
Minimal, due to proactive maintenance
💰Average Annual Cost
IN-HOUSE IT
The average salary for an in-house IT staff member in Australia is approximately AUD $69,308 annually. However, this cost doesn't include the additional expenses for benefits, ongoing training, and equipment. For an SMB with a small IT team, total costs can easily surpass AUD $100,000 when accounting for overheads and infrastructure.
Managed IT Support (MSP)
MSP services generally cost between AUD $100 and $300 per user /month, depending on the scope of services. For example, an SMB with 10 users could expect to pay around AUD $12,000 to $36,000 annually for comprehensive IT management. This is often more affordable than maintaining a full in-house team.
Benefits 👍
In-House IT
Managed IT Support
control
Full control over your team and systems
External team, but follows your company’s needs
Expertise
Limited to the skills of your current team
Access to a broad range of specialists
Scalability
Requires new hires and infrastructure investments
Easily scalable to your business growth
Monitoring
Generally 9-5, limited after-hours availability
24/7/365 monitoring
⌚Response Time for IT Issues
IN-HOUSE IT
The response time for in-house IT largely depends on the availability and expertise of the team. In smaller teams, response times may be slower, especially if they are handling multiple issues simultaneously or are unavailable outside standard working hours (9 to 5).
MANAGED IT SUPPORT (MSP)
MSPs generally offer 24/7 monitoring, meaning they can respond to issues much quicker, often within minutes to a few hours depending on the service-level agreement (SLA). This approach significantly reduces downtime compared to in-house teams.
Risks 😨
In-House IT
Managed IT Support
Downtime Risk
High during vacations or employee turnover
Minimal due to constant monitoring and redundancy
Cybersecurity
Often reactive and may miss threats
Proactive cybersecurity measures and real-time monitoring
Compliance
IT team may not be up-to-date with industry regulations
MSPs are usually experienced in regulatory compliance