For businesses with 50 to 150 employees, the decision between outsourcing IT support and hiring internally often comes down to cost, capability and scalability. While hiring an internal IT manager may appear straightforward, the reality is that a single individual rarely provides the breadth of expertise required to support a modern business environment.
The Real Cost of Internal IT
An internal IT function typically extends beyond salary alone. A mid-level IT manager in the UK may command between £45,000 and £70,000 per year, but additional costs quickly accumulate. Businesses often require at least one support engineer, along with investment in cybersecurity tools, backup systems and ongoing training.
When these elements are combined, the total annual cost can easily reach or exceed £100,000 to £150,000, without necessarily covering specialist areas such as cybersecurity monitoring or cloud architecture.
What Outsourced IT Provides
Outsourcing IT support gives businesses access to an entire team rather than a single individual. This includes helpdesk support, proactive monitoring, built-in cybersecurity protection and strategic IT planning.
For a 100-employee organisation, a managed service costing around £120 per user per month would equate to approximately £144,000 annually. While similar to internal costs, the difference lies in the depth of expertise and coverage provided.
When Internal IT Still Makes Sense
There are scenarios where internal IT remains the right choice. Larger organisations with more than 300 employees, or those running complex internal systems, may benefit from having dedicated on-site support.
Even in these cases, many businesses still supplement internal teams with external providers to handle security, compliance and long-term planning.
The Rise of Hybrid IT
Increasingly, organisations are adopting a hybrid model. Internal teams focus on day-to-day support and user interaction, while a managed service provider delivers cybersecurity, infrastructure management and strategic direction.
This approach combines the familiarity of in-house support with the scalability and expertise of an external partner.
Example Client Scenario
A 90-employee manufacturing company in Buckinghamshire previously relied on a single IT manager. After introducing a managed service partner alongside internal support, the business gained access to proactive monitoring and stronger cybersecurity controls, reducing downtime by more than 30% within the first year.