Hiring a full-time IT team is expensive. For businesses with 25-200 employees, managed IT services can save you $50K+ per year — a managed IT provider like Axus delivers better service at a fraction of the in-house cost. Here's the math.
The Real Cost of In-House IT
Let's look at what it actually costs to run a small internal IT department:
Staffing (minimum viable team):
- IT Manager: $90,000 - $130,000/year
- Help Desk Technician: $45,000 - $65,000/year
- Benefits & overhead (30%): $40,000 - $58,500/year
- Subtotal: $175,000 - $253,500/year
Tools & Infrastructure:
- RMM/monitoring software: $5,000 - $15,000/year
- Security tools (firewall, EDR, SIEM): $10,000 - $30,000/year
- Backup solutions: $5,000 - $15,000/year
- Subtotal: $20,000 - $60,000/year
Training & Certifications:
- Per person: $3,000 - $8,000/year
- Conference attendance: $2,000 - $5,000/year
Total in-house cost: $200,000 - $326,500/year
And that's for a minimal team. You still lack 24/7 coverage, specialized expertise in cybersecurity or cloud, and redundancy when someone is sick or quits.
Managed IT: What You Actually Pay
For a 50-employee business, Axus managed IT services typically cost:
- Per-user monthly fee: $125 - $200/user
- Annual cost: $75,000 - $120,000
What's included:
- 24/7 monitoring and help desk
- Cybersecurity (firewall, EDR, email security)
- Cloud backup and disaster recovery
- Patch management and updates
- Vendor management
- Strategic IT planning (vCIO)
- On-site support when needed
The Savings Breakdown
| Category | In-House | Managed IT | Savings |
|---|---|---|---|
| Staffing | $175K-$253K | Included | $175K-$253K |
| Tools | $20K-$60K | Included | $20K-$60K |
| Training | $5K-$13K | Included | $5K-$13K |
| Service Cost | — | $75K-$120K | — |
| Net Savings | $50K-$206K/year |
Beyond Dollar Savings
The financial case is compelling, but the operational benefits are equally important:
- Reduced downtime: Proactive monitoring catches issues before they become outages
- Better security: Access to a full security team, not just one generalist
- Scalability: Add or remove users instantly as your business changes
- Compliance: Built-in frameworks for HIPAA, PCI, CMMC
- Strategic guidance: A vCIO who understands your business goals
When Does In-House Make Sense?
In-house IT can be the right choice when:
- You have 500+ employees with complex, unique requirements
- You're in a highly regulated industry requiring dedicated compliance staff
- You have proprietary systems that require deep, institutional knowledge
For everyone else, managed IT delivers more expertise, better coverage, and significant savings.
Want to see your specific ROI? Try our ROI Calculator or schedule a free consultation. Call (800) 369-AXUS.