At some point, every growing business hits the same wall: the technology problems are piling up, and somebody needs to own them. The question is who — a full-time IT employee, or an outside partner called a managed service provider (MSP)?
There’s no one-size-fits-all answer, so let’s look honestly at the pros and cons of each.
What an In-House IT Person Costs
Hiring feels like the “safe” option, but the sticker price is bigger than the salary. A mid-level IT generalist earns roughly $65,000–$95,000 per year in most U.S. markets. Add payroll taxes, health insurance, retirement, training, and the software tools they need, and the fully loaded cost typically lands between $85,000 and $120,000+ per year, according to 2026 managed IT pricing benchmarks.
By comparison, MSP pricing for small businesses usually runs $100–$250 per user per month. For a 15-person office, that’s often $1,900–$3,000 per month — less than half the cost of one full-time hire, with an entire team behind it.
Pros and Cons of In-House IT
Pros
- They’re always there. An employee is on-site, knows your people, and learns every quirk of your systems.
- Full control. You set their priorities day to day.
- Deep company knowledge. Over time, they build valuable history with your business.
Cons
- One person can’t know everything. Networking, cybersecurity, cloud, backups, compliance — that’s five specialties, not one job.
- Vacations, sick days, and turnover. When your only IT person is out (or quits), your coverage goes to zero.
- No after-hours coverage. Hackers don’t work 9 to 5. A single employee can’t monitor your systems around the clock.
- Higher total cost. Salary plus benefits plus tools plus training adds up quickly for a small business.
Pros and Cons of an MSP
Pros
- A whole team for less than one salary. You get access to specialists in security, networking, cloud, and support.
- 24/7 monitoring. Good MSPs watch your systems constantly and often fix problems before you notice them.
- Predictable monthly cost. One flat fee instead of surprise bills, making budgeting simple.
- Enterprise-grade tools included. Security and monitoring software that would cost thousands on its own comes bundled in.
- Proven savings. Businesses using managed IT services report 20–30% lower overall IT costs on average.
Cons
- They’re not sitting in your office. Most support is remote, though local MSPs (like us) come on-site when needed.
- Shared attention. You’re one of several clients — which is why choosing a responsive, local provider matters.
- Quality varies. Some big-box MSPs treat small clients like ticket numbers. Ask for references.
The Hybrid Option Nobody Mentions
It’s not always either/or. Plenty of businesses keep one internal tech-savvy person for day-to-day questions and use an MSP for security, monitoring, and big projects. If you just need occasional expert help — a cloud migration, a new office network, a server upgrade — project-based IT consulting is another option with no long-term commitment.
The Bottom Line for Small Businesses
If you have fewer than about 50 employees, the math usually favors an MSP: broader expertise, around-the-clock coverage, and lower total cost than a full-time hire. That’s why CompTIA research shows most U.S. small businesses now outsource some or all of their IT.
Riverview IT Solutions is a locally owned MSP built specifically for small businesses in Chattanooga — with no user minimums, so even a 3-person office gets real support. Learn more about our managed IT services, or schedule a free consultation and we’ll help you compare the numbers for your exact situation. You can also reach us at (423) 500-0140.