In-House IT vs Outsourced IT vs Hybrid: The Real Cost Comparison
Thinking of hiring an IT person? The salary is only part of the story. Use our calculator to see what an in-house hire really costs — and how it stacks up against an outsourced or hybrid approach.
Key Takeaways
- 1The true cost of an IT hire is approximately 55% higher than the headline salary
- 2For most 25-100 user businesses, outsourced IT is more cost-effective than in-house
- 3Hybrid models work well for growing businesses that need both internal ownership and external depth
- 4The cheapest option isn't always the best — consider coverage, expertise breadth, and business risk
The True Cost of an IT Hire
When you see a job listing for an IT Support Technician at £35,000, that's just the starting point. The headline salary is roughly half the true cost to your business. Here's a realistic breakdown of what that hire actually costs:
| Cost Component | Annual Cost |
|---|---|
| Base salary | £35,000 |
| Employer NI (13.8%) | £4,830 |
| Pension (3% minimum) | £1,050 |
| Holiday cover allowance | £2,500 |
| Sick cover allowance | £1,000 |
| Training & certifications | £2,000 |
| Equipment & licences | £2,500 |
| Recruitment fees (20% amortised over 3 years) | £2,333 |
| Management time | £2,000 |
| Total True Annual Cost | £53,213 |
Most businesses underestimate the true cost of an IT hire by 40-50%.
Compare Your Options
Adjust the sliders to match your business and see how the costs compare in real-time.
Second IT hire — hybrid model keeps your manager, we add depth and cover
One point of failure. Limited skillset breadth. Holiday and sickness gaps.
Full team coverage. Predictable cost. ISO 27001 and Cyber Essentials Plus included.
Your IT lead, our depth. Best of both worlds for growing businesses.
Get a Tailored Quote Based on Your Numbers
These figures are estimates. Let us review your specific requirements and provide accurate pricing for your business.
Feature-by-Feature Comparison
Cost is just one factor. Here's how the three models compare across key criteria.
| Feature | In-House | Outsourced | Hybrid |
|---|---|---|---|
| Cost predictability | |||
| Breadth of expertise | |||
| Holiday & sickness cover | |||
| Response time guarantee | |||
| Out-of-hours support | |||
| Cybersecurity expertise | |||
| Compliance evidence (ISO 27001, CE+) | |||
| Strategic IT direction | |||
| Recruitment risk | |||
| Best for company size | 250+ | 10-250 | 100-250 |
When In-House Wins
Hire internally when you have:
- 250+ users with dedicated IT teams, or bespoke systems needing specialised engineering teams
- Regulated environments needing daily on-site IT presence (e.g. some healthcare, defence)
- Companies where IT is the product (software houses, fintechs)
When Outsourced Wins
Outsource when you have:
- 10-250 users with mainstream tech stack (M365, Windows, common SaaS)
- Businesses wanting predictable monthly cost without recruitment risk
- Companies needing ISO 27001 / Cyber Essentials Plus posture without building the team
When Hybrid Wins
Consider hybrid when you have:
- 100-250 users where you have an IT Manager who needs depth and backup
- Growing businesses past the point where one person can cover everything
- Out-of-hours and weekend cover requirements
- Project capacity on top of business-as-usual
Frequently Asked Questions
Common questions about IT support costs and models
Weighing up an IT hire? Let's talk it through.
We'll give you an honest assessment of whether in-house, outsourced, or hybrid is right for your business — even if the answer isn't us.