Is It Cheaper to Hire an IT Person or Outsource IT Support?
Thinking of hiring an IT person? The salary is only part of the story. This is the in-house IT vs outsourced decision in full: use our calculator to see what an in-house hire really costs — and how it stacks up against an outsourced or hybrid approach. We'll answer the either/or honestly, including the scenarios where hiring in-house genuinely beats outsourcing — so you can make the call that's right for your business, not ours.
The Short Answer
For most UK businesses under 100 users, outsourcing IT is cheaper than hiring in-house. A single in-house IT hire on a £35,000 salary really costs around £53,000 a year once you add NI, pension, cover, training and management time. Outsourcing gives you a whole team for a predictable per-user fee — typically £45–80 per user per month. In-house tends to win only above ~100 users or where you need daily on-site presence or bespoke systems.
Key Takeaways
- 1The true cost of an IT hire is approximately 55% higher than the headline salary
- 2For most 10-250 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%.
Is Outsourced IT Cheaper Than In-House? The Numbers
So, is outsourced IT cheaper than in-house? For most small and mid-sized UK businesses, yes. That £53,000 buys you one person with one skill set, no cover for holidays or sickness, and a single point of failure. Outsourcing spreads a comparable budget across a whole team on a predictable monthly fee — see exactly what managed IT services cost per user. For a 50-user business, outsourced support typically lands around £27,000–£48,000 a year for a full team — less than the true cost of two in-house hires, with far broader expertise and guaranteed coverage.
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)
Pros
- Full control over priorities, systems and how IT is delivered
- Physical, on-site presence — someone at a desk who knows the team
- Deep institutional knowledge of your business and its quirks
Cons
- A single point of failure — one person can't cover everything
- Gaps during holiday, sickness and out-of-hours periods
- Limited breadth of expertise across security, networking and cloud
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
Pros
- A whole team of specialists for less than one senior salary
- Predictable monthly cost with no recruitment, training or cover risk
- SLA-backed response times and out-of-hours coverage as standard
Cons
- Less day-to-day on-site physical presence — support is mostly remote
- You depend on a provider relationship, so choosing the right partner matters
- Takes time for a provider to build deep knowledge of your business
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
Pros
- On-site presence and ownership, plus the depth of an external team
- Internal lead keeps strategy in-house while the MSP adds breadth and cover
- Scales smoothly as you grow past what one person can handle
Cons
- Highest total cost — you're paying for both a salary and a provider
- Only justified once you're big enough to need both layers
- Responsibilities must be clearly split to avoid gaps or overlap
When Does In-House Become Cheaper?
The break-even point is typically around 75–100 users. Below that, outsourcing almost always wins on total cost of ownership — you get a full team, security, and guaranteed cover for less than the true cost of one or two in-house hires. Above roughly 100 users, the maths starts to shift: you have enough volume of day-to-day work to keep dedicated staff busy, and spreading a couple of salaries across a large user base can bring the per-user cost below a fully outsourced fee.
Even then, most businesses at that size choose a hybrid model — an internal IT lead for on-site presence and ownership, backed by an MSP for depth, out-of-hours cover and specialist security. Pure in-house only reliably wins the cost argument when you have 100+ users, a stable requirement to keep a team fully utilised, and a need for daily on-site presence or bespoke systems.
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.