Making the decision to outsource your IT department isn’t something you should rush. It’s one of the biggest operational calls a business owner can make — and it’s one that’ll shape how your company handles technology, security, and growth for years to come.
Off the top, it’s worth noting a few of the main reasons most companies choose to outsource their IT needs. Deloitte’s 2024 Global Outsourcing Survey found that 80% of executives plan to maintain or increase investment in third-party outsourcing, with cost reduction, access to skilled talent, and operational agility as the top three drivers. Meanwhile, DemandSage reports that 77% of businesses now outsource at least one IT function.
- 63% of companies outsource for cost savings
- 53% do so to solve capacity issues
- And 28% outsource to improve their service quality
It’s important to note that while outsourcing your IT department won’t be the right fit for every business, the main advantage of having an MSP work with you is that it allows you to strategically fill specific roles and leverage your existing team in a co-managed IT engagement.
That’s why we’ve created this post — to give you a comprehensive look at outsourcing your IT support. We’ll start by discussing the benefits of outsourcing, then move on to the costs and drawbacks. By the end, you should have a solid understanding of whether outsourcing is right for you.
So, with that said, let’s jump right in.
KEY TAKEAWAYS
- For businesses under 100 employees, outsourcing IT is almost always more cost-effective than building an internal team — you’ll save 25–45% on total IT costs according to Meriplex’s 2025 cost analysis.
- One in-house IT generalist costs $70K–$95K in salary alone and can’t cover 24/7 monitoring, security, and strategic planning.
- The hybrid model works too: keep one internal person for business context, outsource the technical depth to an MSP.
- The global IT outsourcing market is projected to reach $1.2 trillion by 2030 (8.6% CAGR), driven by cybersecurity demand and cloud adoption.
Mike Pearlstein is CEO of Fusion Computing and holds the CISSP, the gold standard in cybersecurity certification. He has led Fusion’s managed IT and cybersecurity practice since 2012, serving Canadian businesses across Toronto, Hamilton, and Metro Vancouver.
Most businesses make the outsourcing decision based on one number: MSP monthly fee vs. in-house salary. That’s the wrong comparison. Companies that end up overpaying for in-house IT have typically missed four cost categories that don’t appear in the salary number. And those four categories are where the real gap builds over time.
What Are the Business Benefits of Outsourcing IT?
The top benefits of outsourcing IT are lower total cost, 24/7 coverage, broader expertise, and predictable monthly spending. An MSP delivers a full team — help desk, cybersecurity, cloud management, and strategic planning — for less than the fully loaded cost of one or two in-house generalists.
Outsourced IT through a managed service provider typically costs $65K–$90K annually for a 50-person company, compared to $70K–$95K for a single mid-level in-house hire who covers only one specialization. MSPs deliver broader expertise across security, infrastructure, and compliance simultaneously — and the cost gap widens as headcount grows. If you’re trying to understand the full cost picture, our managed IT services cost breakdown covers Canadian pricing models in detail.
| Outsourced IT (MSP) | In-House IT | |
|---|---|---|
| Monthly cost (50 users) | $5,000–$10,000 | $12,000–$20,000+ (salary + benefits) |
| Coverage hours | 24/7/365 | Business hours (1–2 staff) |
| Skill breadth | Full team: help desk, security, cloud, strategy | Limited to 1–2 generalists |
| Scalability | Add/remove users monthly | Hiring cycle (2–4 months) |
| Cybersecurity | Built-in MDR, EDR, SIEM | Requires additional tools + training |
| Single point of failure | No. Team-based | Yes. Staff leave, illness, vacation |
| Best for | SMBs wanting full coverage at lower cost | Orgs needing dedicated on-site presence |
According to Meriplex’s 2025 cost comparison, organizations using managed IT services save an average of 25–45% on total IT costs compared to fully in-house operations. That’s not just salary savings — it includes benefits, training, tooling, and the hidden cost of turnover.
When it comes to in-house vs. outsourcing, there are several benefits of the latter that you’ll want to consider before investing in an in-house option.
How Much Does IT Outsourcing Actually Cost?
Outsourcing IT to a managed service provider typically costs 40–60% less than hiring an equivalent in-house team when you factor in salary, benefits, training, turnover, and tooling. A single IT hire costs $75,000–$120,000+ annually in Canada and can’t provide 24/7 coverage. Outsourcing gives you a full team for a fraction of one salary.
Undoubtedly, one of the biggest benefits of outsourcing IT is cost savings. By hiring an outside provider, you’ll be able to reduce your overhead costs and focus more on growing your business. For a deeper look at what Canadian companies actually spend, our IT budget planning guide breaks down the numbers by company size.
In most cases, the annual cost of having an entire MSP managing your IT is often the same, or lower than having just one salaried in-house IT expert on staff — and that’s not even including additional expenses like benefits, time off, and ongoing training. ClearlyRated’s turnover research shows that replacing a single IT employee costs 50–200% of their annual salary once you account for recruiting, onboarding, and lost productivity.
It’s also worth noting that for many businesses, the value of an MSP goes far beyond the sheer convenience of saving time and money. They don’t just offer outstanding service at a comparatively reduced cost — they can also handle all aspects of the engagement without the need to bring on third parties.
This can include things like:
- Network monitoring and management
- Infrastructure cabling
- Managed IT services and cybersecurity
- Disaster recovery and backup planning
- 24/7 IT support services
- IT consulting and vCIO services
- Hardware and software procurement
- And more
Furthermore, strong MSPs build deep relationships with their clients — to the point of becoming almost like an extension of the business itself. This doesn’t just create synergy and cost savings; it allows both sides to thrive and move forward together.
Not sure which model’s the right fit? Start with a free IT business assessment to benchmark your current environment against what each staffing model would actually deliver.
Access to New, More Reliable Information Technology (Including Hardware and Software)
You can also capitalize on having access to the latest technology, without needing to make major investments in equipment and software. This access could give you a competitive edge over companies that choose not to outsource their IT needs. It’s one of the advantages that doesn’t show up in the cost comparison but matters enormously in practice.
Greater Breadth of Service Derived from a Greater Pool of Talents
Additionally, outsourcing delivers faster response times for service requests as well as better support, since experienced professionals are taking care of the problem. This improved service will ultimately result in better satisfaction levels and fewer disruptions to daily operations when issues arise. According to JumpCloud’s MSP statistics report, SMBs using MSPs reported a 29% improvement in IT infrastructure uptime and 18% cost savings from outsourced services.
With an MSP, you get access to subject matter experts who specialize in a variety of tasks and functions. These specialists are far more capable of tackling complex challenges than the average jack-of-all-trades personnel you’d find in an in-house department. And they won’t leave you stuck when someone takes a vacation, calls in sick, or suddenly quits. That’s a risk you can’t afford to overlook.
Even with an existing in-house department, MSPs can still prove very useful. They can supplement your IT support when it’s needed, reducing time-consuming slowdowns. If you’re weighing the differences between reactive and proactive IT, our break-fix vs managed services comparison explains why the proactive model wins for most SMBs.
In short, with an MSP you’ve got access to specialists and better availability — two factors that put them ahead of the curve compared to traditional in-house IT staff.
Potential Downsides of Outsourcing Your IT Department
The downsides to outsourcing your IT vs. in-house are minimal, to be honest.
Primarily, the biggest potential downside is a lack of immediate control over your business’s IT day-to-day management. Essentially, you’re required to go with your MSP’s methods rather than your own. And for some business owners, that’s too big a pill to swallow. That said, a good MSP provides visibility dashboards and structured communication — so you won’t feel like you’re flying blind.
| Learn even more about how an MSP adds value to a business with these helpful articles: |
Also, if certain members of your leadership team are opposed to outsourcing your IT, or aren’t willing to work amicably with your MSP, the entire exercise is rendered futile.
For any MSP to operate effectively within your company, they’ll require full cooperation from all members of your C-suite team.
Potential Upsides to In-House IT
Having an in-house IT department does carry a few advantages.
For starters, you won’t need to pay for provider fees, as all costs associated with the in-house team will be covered by the company. Additionally, you’ll have more control over IT processes, which could lead to better efficiency and security — at least in theory.
However, the comparative costs between outsourcing vs. in-house are almost never in the in-house team’s favour.
Almost always, it’s more cost-effective to hire a managed IT services provider.
What Are the Drawbacks of In-House IT vs. Outsourcing?
Let’s take a look at some of the additional drawbacks to having an in-house team.
For one thing, it can require a lot of capital investment upfront to purchase all the necessary equipment and software — something that outsourcing providers already have. In addition, it’ll cost more if your team needs specialized training or expertise in certain areas due to their lack of experience.
You’ve also got to factor in employee-related costs such as salaries and benefits when hiring full-time IT staff. ConnectWise’s 2025 SMB cybersecurity report found that less than 30% of SMBs manage their security in-house successfully — and 52% still rely on an untrained staff member or the business owner themselves for critical security functions. That’s a vulnerability that doesn’t show up on a balance sheet until a breach occurs.
These added costs are drastically reduced by going with outsourced IT services, as the provider already has the infrastructure that you’d otherwise need to pay for yourself if choosing an in-house IT option.
For businesses that already have internal leadership but need more coverage, co-managed IT support can add monitoring, patching, after-hours response, security depth, and vendor follow-through without replacing the internal team.
Fusion Computing delivers managed IT services to Canadian businesses with 10 to 150 employees at a 93% first-contact resolution rate. Pricing ranges from $180 to $250 per user per month and includes 24/7 monitoring, help desk, cybersecurity, Microsoft 365 management, and backup. With no per-incident fees.
Keep your internal IT lead. Add coverage, depth, and breathing room. See how co-managed IT support works.
Not Sure If You Should Outsource?
Our free IT assessment benchmarks your current setup against industry standards and shows exactly where outsourcing would — and wouldn’t — deliver ROI.
Considering Fusion Computing in the Choice Between In-House or Outsourced IT Services
Choosing outsourced services for IT over hiring an in-house IT expert carries a whole host of long-term benefits that contribute to how well your company operates, pivots in changing market conditions, and even the speed at which your team works.
At Fusion Computing, we offer a wide range of managed IT services and support to the Greater Toronto, Hamilton, and Metro Vancouver areas.
As a professional, forward-thinking provider, we’ve been helping businesses succeed since 2012. If you’re not sure where you stand, our IT strategic planning process can map out exactly what your business needs from its technology stack — whether that’s fully outsourced, co-managed, or something in between.
In addition to virtual CIO and fully managed IT — with 24/7 support — we also offer cloud services and email hosting. Our cybersecurity management services are designed to keep your data safe from viruses, malicious software, hackers, and other cyber threats. Whether you’re updating your current systems or looking for a comprehensive solution, Fusion Computing has the tools, experience, and expertise to meet your needs.
Ready to Compare Your Options?
We’ll benchmark your current IT environment, identify gaps, and show you what outsourcing would actually cost for your specific situation. No obligation.
Schedule a free consultation with us today to see how we can help you grow your business and streamline costs through IT outsourcing.
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Is outsourcing IT support cheaper than hiring in-house?
For most small and medium businesses, yes. The annual cost of a full MSP engagement is often equal to or less than a single mid-level in-house hire, once you add benefits, payroll taxes, training, and turnover costs. According to Meriplex’s 2025 analysis, companies save 25–45% on total IT costs by outsourcing. You’ll also get a full team of specialists rather than one generalist, which means issues get resolved by the right expert the first time.
What are the main disadvantages of outsourcing IT?
The biggest concerns are reduced direct control and reliance on an external provider’s methods. If your leadership team won’t collaborate with an MSP, the engagement won’t work regardless of the provider’s quality. A well-chosen MSP mitigates most control concerns by providing visibility dashboards, regular reporting, and structured communication schedules.
What does an in-house IT team provide that an MSP doesn’t?
Deep organizational knowledge and immediate physical presence are the primary advantages of in-house staff. They understand your internal processes intuitively and can walk the floor when it’s needed. That said, many MSPs offer on-site dispatch for hardware issues and build deep familiarity with your environment over time. The gap’s smaller than most business owners expect.
Can I use an MSP even if I already have an IT person on staff?
Yes, and it’s called co-managed IT support. Your internal IT lead handles projects and organizational knowledge while the MSP provides monitoring, after-hours coverage, security depth, and specialized skills they don’t have time to develop alone. It’s a practical model for businesses that want internal IT presence but need more capacity.
How do I decide between outsourcing and building an in-house IT team?
The decision usually comes down to scale, complexity, and budget. Under 50 to 75 seats, outsourcing almost always wins on cost and capability. At 100+ seats with specialized technology, you may want a hybrid model. Ask: can I afford the salary, benefits, and redundancy of the in-house roles I actually need? If not, managed IT support is likely the smarter path.
Fusion Computing serves Canadian businesses across:
Managed IT — Toronto · Managed IT — Hamilton · Managed IT — Metro Vancouver
