Managing IT expenses can often feel like walking a tightrope for many businesses. With multiple factors influencing costs, it’s easy for IT-related expenses to spiral out of control quickly. That’s where Fusion Computing comes in. We offer a transparent, efficient, and reliable way to handle all of your IT expenses.
One of the key tools we provide to help you make an informed decision is the IT Costs Calculator. This tool gives you a clear comparison of the costs of running an internal IT team versus partnering with Fusion. In this blog, we’ll walk through the hidden costs of maintaining an internal IT team and how Fusion offers a more effective and scalable alternative.
KEY TAKEAWAYS
- Internal IT for an SMB costs more than most owners realize when you factor in salary, benefits, tools, training, and coverage gaps.
- Partnering with an MSP gives you a full team for less than one hire – and no single point of failure.
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.
According to CompTIA, 94% of SMBs now use a managed service provider. The cost comparison explains why.
The true cost of internal IT for a Canadian SMB goes far beyond salary. A single in-house IT generalist costs $70K–$95K in salary, plus $15K–$25K in benefits, $5K–$10K in tools and training, and creates a single point of failure with no 24/7 coverage, no security specialization, and zero redundancy. A full MSP team costs roughly the same or less.
The True Cost
Hiring one internal IT person in Canada costs $75,000–$120,000 in salary plus 20–30% for benefits, training, and tooling. totaling $95,000–$155,000 annually. That single hire can’t provide 24/7 coverage, cybersecurity expertise, and strategic planning simultaneously. Comparing this to managed IT pricing reveals the true cost gap for businesses under 100 employees.
Building an internal IT team may seem like a great idea at first – having a diverse range of talent under one roof, all working together towards a common goal. However, the reality often falls short of this ideal. While salaries and benefits are the most obvious costs, there are many hidden expenses that can quickly accumulate.
If you’re weighing internal IT against outside support, compare our managed IT services page for the full-service model (or managed IT services Toronto if you’re in the GTA), our co-managed IT services page if you already have internal staff, and our IT assessment page for a scoped review of the real cost drivers in your environment.
Fusion Computing charges $180 to $250 per user per month for fully managed IT services in Canada, covering 24/7 monitoring, help desk, cybersecurity, Microsoft 365, and backup. The company reports a 93% first-contact resolution rate with no per-incident surcharges or long-term contracts.
Employee Salaries
The salaries of your IT team can vary greatly depending on their role and experience. For example:
- A service technician might cost $55,000 annually.
- A senior IT Manager could command $100,000 or more.
The higher the skill level, the higher the salary, and in larger teams, these salaries add up without a moment’s notice. Let’s say you have a Senior Technician team. The total salary cost can reach $160,000 annually.
Employer Overhead
Salaries are only the tip of the iceberg. Beyond base pay, companies also shoulder the cost of employer overhead, including:
- Benefits (healthcare, retirement plans, etc.)
- Taxes
- Office Space for your IT staff
- Ongoing training (programs, certifications, exams)
These additional costs typically add another 20% to the baseline salary. So, if an IT Manager is earning $100,000, the true cost of that role could easily be around $120,000 annually when factoring in benefits and other overhead.
Recruitment, Onboarding & Training
Recruiting and retaining high-quality IT professionals can be both time-consuming and expensive. The average time to hire an IT professional exceeds one month, and beyond recruitment costs, there are onboarding expenses and the time spent integrating new employees into your systems. Additionally, training your IT staff to keep them up-to-date with the latest technologies and compliance requirements adds another layer of expense. However, the costs of not training can be even more detrimental. Outdated skills can lead to inefficiencies, security vulnerabilities, and missed opportunities for innovation. Lack of training can also result in compliance gaps, risking fines or reputational damage. Moreover, employees who feel their skills aren’t being developed may leave, incurring further recruitment and onboarding costs.
Technology & Infrastructure
An internal IT team requires extensive infrastructure:
- Computers, laptops, servers, software tools
- Networking equipment
- Ongoing updates, patches, and upgrades to ensure the tech stack is up to date
These costs can be difficult to predict and often increase over time as technology advances. It’s not just the upfront cost. it’s the continuous expense of keeping all systems running smoothly and securely.
Fusion Computing’s Monthly Managed IT Package
- All-inclusive, fixed pricing
- Executive IT Strategy (Fractional CIO/CTO)
- Executive IT Business Operations (Fractional COO)
- Fractional CISSO
- Proactive 24/7 support
- Expertise across all IT disciplines
The IT Costs Calculator: Make Informed Decisions
Understanding the true cost of internal IT versus partnering with Fusion can be tricky, which is why we’ve developed our IT Costs Calculator. This tool lets you see a side-by-side comparison, providing clarity on how much you could be saving by working with a dedicated IT services provider like Fusion.
While the upfront cost of working with an external IT provider like Fusion may seem higher at first glance, the long-term savings and efficiency gains are substantial. With predictable pricing, expert-level talent, no overhead costs, and comprehensive IT support, Fusion Computing provides a smarter, more cost-effective IT solution compared to building and maintaining an internal team.
Don’t Keep Letting Your IT Get in the Way of Your Growth. Use our IT Costs Calculator to see how much you could save and improve the efficiency of your IT strategy today!
Ready to see how much you could save?
Click here to access our IT Costs Calculator and get a customized analysis of your IT expenses.
Related Resources
- vCIO & vCISO Services
- IT Business Assessment
- How to Build an IT Roadmap
- IT Strategic Planning Guide
- Managed IT Support
- Cybersecurity Services
Fusion Computing serves Canadian businesses across:
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Beyond salaries, internal IT teams carry employer overhead of roughly 20%: benefits, payroll taxes, office space, and equipment. Add recruiting costs (often one month’s salary or more), onboarding time, ongoing training, software licensing, and hardware. These costs compound quickly. A senior technician earning $100,000 likely costs $120,000 or more all-in before any infrastructure spend.
How does partnering with an MSP compare in cost to an internal IT department?
For most businesses under 100 seats, a managed services engagement costs the same as or less than one senior IT hire, and delivers a full team with coverage across all disciplines. You also avoid the costs of turnover, which are significant in IT where skilled staff are in high demand. The comparison shifts further in the MSP’s favour once you include infrastructure overhead.
What is the cost of not training your internal IT staff?
Outdated skills lead to slower issue resolution, security vulnerabilities, compliance gaps, and missed opportunities to apply better solutions. Untrained staff are also more likely to leave for employers who invest in their development, triggering another expensive recruiting cycle. Regular training isn’t just a benefit line item; it’s a prerequisite for effective IT operations.
How can I calculate whether managed IT is cheaper than in-house IT for my business?
List your current or projected in-house IT costs: salaries, benefits, overhead, training, licensing, and infrastructure. Then get a managed IT quote based on your user count and environment. Fusion’s IT Costs Calculator gives you a side-by-side comparison using your actual numbers. Most businesses are surprised how quickly the math favours managed services.
Does switching to a managed IT provider mean losing IT strategy and leadership?
No. Full managed IT packages include fractional CIO and security leadership at the executive level. This means you get technology roadmap planning, vendor negotiation, and board-level IT reporting without hiring those roles separately. It’s one of the most underappreciated parts of a comprehensive managed services engagement.
Related Resources
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