Outsourced IT Support vs In-House: The Real Cost

If you are weighing up outsourced IT support vs in house cost, the honest answer is that outsourcing is usually cheaper for small UK businesses, but only when the contract covers what you actually need. Here is how to compare the two fairly.

What does in-house IT really cost?

An in-house IT person costs far more than their salary. Add employer National Insurance, pension contributions, recruitment fees, training and the equipment they need, and the true figure climbs quickly.

Then there is cover. One person cannot work every hour, take no holiday and never fall ill. When they are away, your business is exposed. They are also one generalist, and no single hire is an expert in networking, cyber security, cloud and hardware all at once.

What does outsourced IT support cost?

Outsourced IT support is normally a monthly fee based on your number of users and the services included. You pay for a team, not a salary, so the cost is predictable and scales as you grow or shrink.

Prices vary widely. One UK provider guide suggests a range of roughly £2,000 to £5,500 a month for a 75-person business, though that is a provider's own indication, not an independent benchmark. A ten-person firm will pay far less. The only reliable way to know is to get quotes against your own setup.

Where outsourcing costs creep up

The headline monthly price is not always the full price. Out-of-hours support, project work such as office moves or new systems, and cyber security add-ons are the usual places where a quote and a final bill drift apart.

Ask every provider exactly what is included, what is extra, and how extras are charged. Our guide to comparing IT support quotes shows what to check.

When in-house still makes sense

In-house can win when you have a large team, complex systems that need someone on site every day, or strict needs that a shared provider cannot meet. Even then, many larger firms keep one internal person and outsource the specialist work.

For most small businesses with straightforward needs, a full-time hire is more than they need and more than they should pay for.

How to compare the two for your business

Work out the full yearly cost of a hire: salary, National Insurance, pension, recruitment, training and equipment. Then ask two or three providers to quote for the same list of users and services. Put both totals side by side and include what happens when your IT person is away.

That gives you a real total cost, not a guess. Remember that most cost claims online come from providers who want your business, so rely on your own numbers.

Compare IT support providers and get free, no-obligation quotes.