How a 25–125 Employee Business Can Compare Cost, Coverage, Expertise, and Risk Before Deciding How to Manage IT

For a 25–125 employee business, the decision to hire an internal IT person or outsource IT usually comes down to five factors: cost, coverage, technical depth, onsite requirements, and how much IT management the business wants to keep internally.

An internal IT employee provides daily familiarity with the company and an immediate onsite presence, but one person cannot realistically be an expert in help desk support, Microsoft 365, networking, servers, cloud infrastructure, cybersecurity, backups, compliance, and long-term IT strategy while also providing coverage nights, weekends, vacations, and sick days.

A managed IT provider gives the business access to a larger technical team and broader coverage, while a hybrid approach combines internal knowledge with outside resources.

Cost matters too. At a managed IT range of approximately $175–$225 per user per month, a 50-user business could spend roughly $105,000–$135,000 per year on managed IT services. Comparing that number with an employee’s salary alone creates an incomplete picture. Businesses should compare the services, tools, coverage, benefits, training, management time, cybersecurity capabilities, and technical resources included with each option.

For many growing businesses, the best answer becomes clearer once those factors are compared side by side.

Three Ways a Growing Business Can Manage IT

Most small and midsized businesses eventually settle into one of three models.

Internal IT puts primary responsibility on an employee or internal department. The business hires, manages, trains, and retains the people responsible for technology.

Outsourced IT transfers most day-to-day IT management to a managed service provider. The MSP provides support, monitoring, infrastructure management, cybersecurity services, strategic guidance, and other capabilities based on the agreement.

Hybrid IT combines the two. An internal IT employee or small team retains certain responsibilities while an MSP handles other areas.

The right model depends on what the business actually expects from its IT function. A 30-person professional services firm with primarily cloud-based applications has very different requirements from a 120-person company with multiple locations, servers, specialized applications, and significant cybersecurity requirements.

Start With the Full Cost of an Internal IT Hire

Salary is the easiest number to compare, which is also why it can lead to a misleading comparison.

An internal employee has additional costs such as payroll taxes, benefits, recruiting, training, certifications, paid time off, equipment, software, and management overhead. The business may also still need to purchase many of the tools used to monitor and secure its environment.

Instead, think about what capabilities the company receives for that total investment.

Suppose a 50-employee company is considering hiring its first dedicated IT employee. The candidate may be excellent at desktop support, Microsoft 365, and basic network administration but have limited experience with advanced cybersecurity or major infrastructure projects. The business could still need outside security expertise, backup services, specialized engineering, project support, or consulting.  That doesn’t make the internal hire a poor choice. It means leadership should include those additional requirements when comparing the options.

Compare the Same Scope on Both Sides

When evaluating an MSP proposal against an internal hire, create a common scope and determine who will provide each capability.

This comparison usually reveals more than comparing two annual dollar amounts.

One IT Person Creates a Coverage Problem

A talented IT employee can provide tremendous value to a growing company. The challenge is that one person still has the capacity of one person.

They take vacations. They get sick. They attend training. They work on projects. They may already be troubleshooting a major issue when three more employees need help.

After-hours coverage creates another challenge. If the same employee supports users during the day, handles infrastructure problems at night, responds to weekend security alerts, and remains available for emergencies, the model becomes difficult to sustain.

This becomes more important as the business grows. A 25-person organization may be able to tolerate delays that become disruptive at 75 or 100 employees.

So, leadership should determine how support will operate when the primary IT employee is unavailable and how serious problems will be escalated when they exceed that person’s expertise.

Technical Depth Becomes More Important as the Environment Grows

Modern business IT covers a wide range of disciplines. Even relatively small organizations may depend on Microsoft 365, identity management, endpoint security, firewalls, wireless networks, cloud applications, backups, servers, compliance requirements, mobile devices, and multiple third-party vendors.

Finding one person who is equally strong across every discipline is difficult.

An internal IT professional may be highly capable but naturally stronger in some areas than others. A systems administrator may have extensive server and network experience while having less experience with cybersecurity investigations. A strong help desk technician may provide excellent employee support but lack the engineering background to redesign a network or lead a cloud migration.

A managed IT provider can distribute those responsibilities across different people. Help desk technicians can handle user issues while engineers address infrastructure, security specialists investigate threats, and strategic resources work with leadership on planning.

That depth is one of the primary differences between hiring an individual and engaging an IT organization.

Internal IT Has Advantages an MSP Cannot Completely Replicate

There are good reasons businesses hire internal IT employees.

Someone working inside the organization every day can develop a deep understanding of employees, workflows, applications, departments, and company culture. They may notice operational issues that would be difficult for an outside provider to see immediately.

Internal IT can also be valuable when a business has proprietary systems or specialized applications that require constant attention. Some organizations need someone physically present because technology is tightly connected to daily operations.

The internal employee may also become an important bridge between leadership, employees, vendors, and outside technology partners.  For businesses with enough ongoing work to justify the role, those advantages can be significant.  The important consideration is whether the company expects that person to perform every IT function alone.

What Changes When You Outsource IT?

With a managed IT provider, the business is buying an operating model rather than hiring one person’s time.

The MSP should have defined processes for support, escalation, monitoring, documentation, cybersecurity, infrastructure management, and strategic planning. When an issue requires expertise beyond the first technician, there should be another resource available to escalate it to.

Coverage can also extend beyond normal business hours. For example, AT-NET provides an internally staffed 24/7/365 help desk with less than 60-second response, allowing support to continue without placing the entire after-hours burden on one employee.

The tradeoff is that an outsourced team does not automatically possess the institutional knowledge of someone who has worked inside the company for years. A strong MSP has to build that knowledge through onboarding, documentation, technical alignment, regular communication, and strategic reviews.

That makes the MSP’s operating process just as important as its technical capabilities.

The Hybrid Model Deserves Serious Consideration

The decision does not have to be entirely internal or entirely outsourced.

For many companies approaching 75–125 employees, a hybrid model can make sense because the business has enough technology activity to benefit from internal ownership while also needing capabilities that would be expensive to build into a complete internal IT department.

A 100-employee company might have an internal IT manager who understands its applications, coordinates technology projects, works directly with leadership, and handles specialized business systems. The MSP could provide the help desk, 24/7 coverage, cybersecurity monitoring, infrastructure engineering, backup management, escalation resources, and additional project capacity.

Responsibilities can be divided according to strengths rather than forcing either side to do everything.

The biggest requirement for a hybrid arrangement is clarity. Employees should know where to request support, the internal IT person should know which problems belong to the MSP, and both teams should have documented escalation and ownership procedures.

Without that clarity, hybrid IT can create duplicated effort and finger-pointing. With it, the model can give a growing business substantial technical depth without requiring it to build every capability internally.

Cybersecurity Can Change the Calculation

Cybersecurity is one area where the internal-versus-outsourced decision has become more complicated.

Protecting a modern business may involve multifactor authentication, endpoint detection and response, email security, vulnerability management, patching, firewall management, identity security, backup protection, security monitoring, incident investigation, and response procedures.

Purchasing security products does not automatically provide the people and processes needed to operate them.

An internal IT employee can certainly manage cybersecurity, particularly if that is an area of expertise. Leadership should still determine who monitors security outside normal working hours, who investigates suspicious activity, who handles an incident that exceeds the employee’s experience, and who covers those responsibilities when the employee is unavailable.

Those questions help determine whether cybersecurity should remain internal, move to a managed provider, or operate as a shared responsibility.

Don’t Ignore the Cost of IT Tools

An internal IT department needs technology to manage technology.

Depending on the environment, that can include remote monitoring and management, endpoint security, email protection, vulnerability scanning, backup platforms, documentation systems, remote access tools, ticketing systems, DNS security, password management, and other services.

Some of those tools may already be necessary regardless of who manages IT. Others may be included as part of an MSP’s service.

When comparing costs, leadership should identify which products are included in the managed IT agreement and which would need to be purchased separately under an internal model.

This is particularly important when comparing a managed service price on a per-user basis with an employee salary. The two numbers may represent very different scopes.

How the Numbers Can Look for a 50-Employee Business

Using AT-NET’s typical managed IT range of approximately $175–$225 per user per month, a 50-user company would be looking at roughly:

50 users × $175 = $8,750 per month

to

50 users × $225 = $11,250 per month

That equals approximately $105,000–$135,000 per year.

The exact price depends on the environment and services included, and separately scoped projects or specialized requirements may fall outside that range.

Leadership can now put an internal option beside it and calculate the fully loaded annual cost of the employee, required IT tools, cybersecurity services, training, outside consulting, after-hours coverage, and specialized project assistance.

This produces a much more useful comparison than asking whether an MSP costs more or less than one person’s salary.

When Internal IT Is Likely the Better Fit

Internal IT becomes increasingly attractive when the business has enough ongoing technology work to keep dedicated staff productive, requires substantial daily onsite involvement, or relies on specialized applications and workflows that benefit from deep institutional knowledge.

It can also be the right strategic decision for companies that want technology leadership to sit directly inside the organization.

The business still needs to address coverage and specialization. If there is only one IT employee, leadership should have a plan for vacations, illness, turnover, cybersecurity incidents, major projects, and technical issues beyond that employee’s experience.  Those gaps can often be addressed with outside specialists without outsourcing the entire IT function.

When Managed IT Is Likely the Better Fit

Managed IT tends to fit businesses that need broader technical capabilities than they can reasonably build internally.

A company may want a responsive help desk, infrastructure management, cybersecurity, backups, monitoring, engineering, vendor coordination, and strategic IT planning but not have enough work in each discipline to justify hiring separate specialists.

The MSP model can also reduce dependence on a single employee. Knowledge, documentation, and responsibility should be distributed across an organization rather than concentrated with one person.

Businesses considering this model should evaluate more than the provider’s service list. Response expectations, escalation processes, cybersecurity responsibilities, onboarding, documentation, strategic planning, and communication all affect the quality of the relationship.

When Hybrid IT Is Likely the Better Fit

Hybrid IT becomes compelling when a business already has an internal IT resource it values but that person needs additional capacity or expertise.

The internal employee may remain responsible for business applications, employee relationships, onsite coordination, or technology leadership while the MSP handles functions that benefit from scale.

This can also create a better job for the internal IT person. Instead of spending most of the week resetting passwords, troubleshooting printers, responding to alerts, and handling routine maintenance, they can spend more time working on technology that is specific to the business.

For larger SMBs, the decision therefore may not be whether to replace internal IT with an MSP. It may be how to design an IT team that uses both effectively.

Use These Five Questions to Make the Decision

Leadership can narrow the options by evaluating five practical questions.

1. How much onsite IT presence do we actually need?

Determine whether someone truly needs to be onsite every day or whether most support can be handled remotely with onsite assistance when necessary.

2. What happens when our primary IT person is unavailable?

Account for vacation, illness, training, turnover, simultaneous problems, and after-hours incidents.

3. How many technical specialties does our environment require?

List the capabilities needed across support, networking, servers, Microsoft 365, cloud, cybersecurity, backups, applications, compliance, and strategic planning.

4. What is the full annual cost of each model?

Include compensation, benefits, tools, training, security services, outside consultants, project resources, and other costs required to produce comparable coverage.

5. Who is responsible for technology planning?

Someone needs to look beyond today’s tickets and maintain a 12–36 month technology roadmap covering lifecycle, cybersecurity, projects, business changes, and budget.

The answers usually make it much easier to determine which model fits the company.

Frequently Asked Questions About Internal IT vs. Managed IT

Is an MSP cheaper than hiring an IT employee?

Sometimes, but cost alone should not determine the decision. Compare the fully loaded cost and capabilities of both models. An employee provides dedicated internal capacity, while an MSP may include multiple technical resources, support coverage, management tools, cybersecurity capabilities, and strategic services.

How much does outsourced IT cost for a 50-person company?

At a range of approximately $175–$225 per user per month, managed IT for 50 users would be approximately $8,750–$11,250 per month, or $105,000–$135,000 annually. Actual pricing depends on the provider, environment, services, security requirements, and scope.

At what company size should you hire an internal IT person?

There is no single employee threshold. The decision depends on support volume, technical complexity, onsite requirements, business applications, cybersecurity needs, and how much technology work exists. Companies in the 25–125 employee range can successfully use internal, outsourced, or hybrid models depending on those requirements.

Can an MSP work with an existing IT department?

Yes. In a co-managed or hybrid IT arrangement, the internal team and MSP divide responsibilities. The MSP might provide help desk services, cybersecurity, infrastructure engineering, after-hours coverage, project resources, or strategic support while internal IT retains other responsibilities.

What happens if our only IT employee leaves?

A single-person IT department can create a knowledge and continuity risk if documentation, administrative credentials, vendor relationships, and technical knowledge are concentrated with that employee. Businesses using an internal model should document the environment and establish coverage for turnover and extended absences.

Is managed IT better for cybersecurity?

It depends on the capabilities of the internal team and the MSP being considered. An MSP can provide access to broader security resources and continuous coverage, but businesses should verify exactly which cybersecurity services are included, who monitors them, and who is responsible for incident response.

Do we have to eliminate our internal IT position to use an MSP?

No. A hybrid or co-managed arrangement allows an internal IT employee or department to work alongside an MSP. This is often useful when the internal team has strong business knowledge but needs additional support capacity, cybersecurity resources, engineering expertise, or after-hours coverage.

Choose the Model That Can Support the Next Stage of the Business

The strongest IT model is one the company can sustain as its technology requirements grow.

A business with 30 employees may be well served by a fully outsourced model today. At 80 employees, it may decide to add an internal technology manager while continuing to use its MSP. Another 100-person organization may remain fully outsourced because its applications and infrastructure do not require a full-time internal presence.

Leadership should evaluate the next two or three years, not just today’s ticket volume. Growth, new offices, acquisitions, cybersecurity requirements, compliance obligations, cloud projects, and new business applications can materially change what the company needs from IT.

The decision should leave the organization with dependable support, sufficient technical depth, cybersecurity coverage, continuity when individuals are unavailable, and someone responsible for long-term technology planning.

About AT-NET

AT-NET has helped businesses manage and plan technology since 1999. Managed IT clients have access to an internally staffed 24/7/365 help desk with less than 60-second response, more than 20 engineers, a dedicated Technical Alignment Manager, and a dedicated vCIO.

AT-NET provides managed IT, cybersecurity, cloud, backup and disaster recovery, infrastructure, and strategic IT services to businesses throughout North Carolina, South Carolina, Florida, and Eastern Tennessee. AT-NET can also work alongside existing internal IT resources when a co-managed approach better fits the organization.

Deciding Between Internal IT, Managed IT, or Both?

AT-NET can help you evaluate your current IT workload, support requirements, cybersecurity needs, technical environment, and future plans to determine what an appropriate support model looks like.

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