3 min read
Outsourced IT vs. Internal IT: The Smartest Investment for Your Business
Sagiss, LLC
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Published: February 13, 2025 Updated: October 1, 2024
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Technology isn’t just part of business—it is business. Whether you’re running a growing startup or a well-established company, your IT infrastructure is the engine that keeps you competitive.
The question isn’t if you need IT support—it’s how you get it.
Do you build an in-house IT team, sinking thousands into salaries, training, and office space? Or do you outsource IT to a team of experts who can handle your security, cloud infrastructure, and troubleshooting remotely, at a fraction of the cost?
This isn’t just a financial decision. It’s a strategic one that can either fuel your growth or hold you back. For most small businesses, the smart money is on outsourcing.
The True Cost of Internal IT: More Than Just Salaries
Many business owners assume an internal IT team gives them more control and security. After all, having tech pros on-site means faster response times and deeper company knowledge, right?
Possibly. But even that comes at a cost?
A single full-time IT manager can set you back more than $100,000 a year. Need more than one person? Your IT payroll just doubled or tripled if those employees also need benefits.
And that’s not even the worst part.
The reality is internal IT teams are often outgunned in cybersecurity. Cyberattacks are skyrocketing, and small businesses are the biggest targets. Hackers know smaller companies lack the resources for around-the-clock security, making them low-hanging fruit. Ransomware alone costs businesses over $1 billion annually—and that number is climbing. Keeping a network, even a small one, requires specialized skills in cybersecurity, likely something the IT generalist that you’d likely hire doesn’t have.
MSPs invest in best-in-class security, compliance expertise, and real-time monitoring—because their entire business depends on keeping yours safe.
Why Outsourced IT Is the Smarter Play for Small Businesses
If you run a small to mid-sized business, you need IT support that’s cost-effective, scalable, and battle-tested. That’s where outsourcing wins, hands down.
1. Get More for Less
Let’s talk numbers.
Hiring an in-house IT team? You’re paying six figures in salaries before you even get to software, security, and cloud solutions.
Outsourcing to a Managed Service Provider (MSP) gets you an entire team of experts for a fraction of the cost.
2. 24/7 Protection—Because Cybercriminals Don’t Work 9 to 5
IT problems don’t punch a timecard. Neither do hackers.
If your in-house IT team clocks out at 5 p.m., what happens when your network crashes at midnight? Or worse—when a ransomware attack locks down your entire system over a holiday weekend?
MSPs provide 24/7 monitoring and rapid-response support, catching problems before they cripple your business.
3. A Team of Experts vs. One Overworked Generalist
Hiring in-house? You’ll likely end up with one or two IT pros juggling everything—from cybersecurity to software updates to cloud migrations.
Outsource IT? You get a team of specialists—security experts, cloud engineers, compliance pros—all for the price of one salary.
4. Scale Without the Growing Pains
Business booming? That’s great—until your IT team can’t keep up.
Need new software, stronger security, or a cloud migration? Hiring and training more IT staff takes months.
With an MSP, you scale on demand. Whether you’re adding new employees, expanding locations, or upgrading systems, your IT grows with you—instantly.
5. Security and Compliance: Get It Right or Pay the Price
Cyberattacks aren’t just annoying—they’re business killers.
And here’s the brutal truth: 60% of small businesses shut down within six months of a cyberattack.
If your IT team misses a single vulnerability, it could cost you millions in lost revenue, legal fees, and reputational damage.
MSPs live and breathe cybersecurity. They provide:
- Multi-layered security to block threats before they reach your business
- Real-time monitoring to catch suspicious activity before it spirals
- Compliance expertise for industries with strict regulations (finance, healthcare, etc.)
The Bottom Line: For Most Businesses, Outsourcing IT Wins
For the vast majority of small and mid-sized businesses, outsourcing IT is the smarter, leaner, and more secure choice.
It’s not just about cost savings, it’s about getting the right expertise, the right security, and the right scalability—without the hiring headaches.
That’s not to say internal IT doesn’t have its place. Large enterprises with complex IT needs may still require in-house teams for strategic oversight.
But for 99% of small businesses, outsourced IT delivers better protection, better service, and better ROI.
At the end of the day, this isn’t just an IT decision—it’s a business decision. And in today’s landscape, choosing the wrong IT model could cost far more than just money.