For most UK SMEs under 150 staff, managed IT costs 60–80% less than hiring in-house while providing broader expertise, better security, and no HR risk. In-house only makes sense at 200+ users or with unique compliance needs.
SHOULD I HIRE IT STAFF
OR OUTSOURCE?
The full cost and risk comparison for UK SMEs — managed IT service vs hiring your own IT person. We'll show you the numbers.
Managed IT vs in-house IT:
full comparison
| Factor | Managed IT (MSP) | In-House IT Staff |
|---|---|---|
| Monthly cost (10 users) | £700–£1,200/mo | £4,500–£6,000/mo (salary + NI + pension) |
| Coverage hours | 24/7 monitoring, business hours helpdesk | One person — sick leave, holidays, off hours uncovered |
| Depth of expertise | Full team: network, security, cloud, compliance | One generalist — skills ceiling |
| Cyber security | Included — endpoint protection, SIEM, patching | Separate budget needed, rarely specialist |
| Onboarding time | 24–48 hours to full cover | 4–12 weeks recruitment + 3-month probation |
| Institutional knowledge risk | Documented processes, team continuity | Single point of failure — person leaves, knowledge walks out |
| Scalability | Per-user pricing — scales instantly | Hire another person at full cost |
| Control & familiarity | Remote team, less face time | On-site, knows your business deeply |
When in-house IT does make sense
200+ users with complex bespoke systems
At enterprise scale, a dedicated internal IT manager to liaise with your MSP or manage custom software can make sense — alongside managed IT, not instead of it.
Heavily regulated with on-site data requirements
Some regulated sectors (defence, some finance) require in-house security clearance and on-premises data handling that external providers cannot satisfy.
Internal IT product development
If IT is core to your product (you build software), you need developers and product engineers — a different role entirely from IT support.
For these scenarios, Coreitech also provides co-managed IT — where your in-house IT manager works alongside our team for the best of both worlds.
What an IT hire actually costs
Most SMEs underestimate in-house IT costs by 40–60% by only accounting for salary.
What managed IT actually costs
Per-user pricing — scales with your headcount, no hidden costs.
Includes: helpdesk, monitoring, endpoint security, patching, Microsoft 365 admin. No recruitment fees, no sick cover, no training costs.
Managed IT vs in-house IT —
questions answered
Q.Should I hire an IT person or use a managed IT service provider?
For most SMEs under 150 staff, managed IT support is significantly more cost-effective than hiring in-house. A managed IT provider gives you a full team — helpdesk, network engineers, security specialists — for less than the cost of one mid-level IT hire. In-house IT only starts to make financial sense at scale (200+ users) or when you have unique compliance requirements that necessitate dedicated internal staff.
Q.How much does it cost to hire an in-house IT person in the UK?
A junior IT support technician in London costs £28,000–£38,000/year in salary alone. Add employer NI (13.8%), pension (3%+), benefits, equipment, training, and management time, and the true cost is typically £40,000–£55,000/year. An IT manager or senior engineer costs £50,000–£80,000+ in salary. Managed IT support for a 20-person company typically costs £12,000–£20,000/year — a fraction of a single hire.
Q.What are the risks of relying on one in-house IT person?
Single-person IT creates significant business risk: when that person is ill, on holiday, or resigns, your IT support disappears entirely. There is also a skills ceiling — one person cannot be expert in networking, security, cloud, compliance, and helpdesk simultaneously. Managed IT provides team cover, documented processes, and no single point of failure.
Q.Can I use both a managed IT provider and an in-house IT person?
Yes — this is called co-managed IT. Many growing businesses have one in-house IT manager who handles day-to-day relationships and business-specific projects, while the managed IT provider handles helpdesk volume, security monitoring, and specialist work. This is often the best of both worlds for businesses with 100–300 users.
Q.When does it make sense to hire in-house IT staff?
In-house IT makes financial sense when: (1) you have 200+ users and IT complexity justifies a full-time specialist, (2) you have bespoke internal systems requiring permanent dedicated support, (3) your sector has specific security clearance or data sovereignty requirements. For most London SMEs under 150 staff, managed IT is the better commercial decision.
Q.Is managed IT support better than having your own IT department?
For SMEs, yes in most cases. A managed IT provider offers broader expertise, faster response, 24/7 monitoring, built-in cyber security, and no HR risk — all for a predictable monthly fee. The exception is large organisations or those with unique compliance requirements that mandate internal staff. Most growing London businesses find managed IT gives them enterprise-grade capability at a fraction of the in-house cost.
See what managed IT would cost
for your business
Tell us your headcount and we'll provide a tailored cost comparison against hiring in-house — with full transparency on what's included.