Is outsourced IT cheaper than hiring in-house IT?

For most small and mid-sized businesses, yes. A single in-house IT hire costs a salary plus benefits, training, and tools, and still leaves gaps during vacations or turnover. Outsourced IT spreads a full team across a predictable monthly fee, so you get broader coverage for less than the fully loaded cost of one employee.

How much does outsourced IT support cost?

Managed IT is billed on a predictable monthly basis, scaled to your environment. At 37 Forge, fully managed plans start at $135 per device per month, and an entry Essentials retainer starts at $37 per device per month plus network monitoring. A flat monthly fee makes budgeting predictable, with no surprise hourly bills when something breaks.

What is co-managed IT?

Co-managed IT is a hybrid model where your internal IT person or team keeps day-to-day, business-specific work, while an outside provider adds depth: security, after-hours coverage, infrastructure projects, and specialized expertise. It is a common choice for businesses that have some IT staff but need broader coverage without hiring more full-time employees.

How many employees should a business have before hiring in-house IT?

There is no fixed threshold, but most businesses under roughly 50 employees find a single in-house hire hard to justify, since one person cannot cover security, networking, cloud, and help desk well. Outsourced or co-managed IT typically delivers broader expertise until headcount and daily IT demand are high enough to support a full internal team.

Is outsourced IT secure?

A reputable managed provider is usually more secure than a single in-house generalist, because security is handled by specialists using established frameworks, monitoring, and documented processes. For regulated industries such as healthcare, finance, and retail, a provider experienced in HIPAA, SEC, and PCI requirements can close compliance gaps an internal hire may not have time to manage.

Can you switch from in-house to outsourced IT without downtime?

Yes. A structured onboarding documents your systems, transfers accounts and access, and runs in parallel before any cutover, so the transition happens without interrupting daily operations. Many businesses move to a co-managed model first, keeping internal knowledge in place while the provider takes on security and infrastructure.

In-house IT vs. outsourced IT: which is right for your business?

Short answer

For most small and mid-sized businesses, outsourced IT is the better choice: a full team of specialists for a predictable monthly fee, versus the salary, benefits, and single-point-of-failure risk of one in-house hire. In-house IT suits larger companies with constant, complex daily needs. Co-managed IT blends both.

The quick comparison

Factor	In-house IT	Outsourced IT (managed)	Co-managed IT
Cost model	Salary + benefits + tools + training per employee	Predictable monthly fee	Smaller internal cost + monthly fee for added depth
Coverage	Business hours; gaps during PTO, sick days, turnover	Full team; after-hours and weekend options	Internal daytime presence + provider after-hours backup
Breadth of expertise	Limited to what one or two people know	Specialists across security, cloud, networking, compliance	Internal business knowledge + outside specialist bench
Scalability	Slow, requires hiring	Fast, scale coverage up or down by plan	Flexible, add provider capacity as you grow
Best for	Large orgs with constant, complex daily IT	SMBs wanting full coverage at lower cost	Businesses with some IT staff who need more reach

How to decide

Choose in-house IT when you have constant, hands-on daily needs, a large headcount, and the budget to staff for redundancy, so a vacation or a single resignation doesn't leave you exposed.

Choose outsourced (managed) IT when you want broad expertise, predictable costs, and coverage that doesn't depend on one person. This fits most businesses under roughly 100 employees, and it's especially valuable in regulated fields like healthcare, finance, and retail, where compliance (HIPAA, SEC, PCI) is too much for one generalist to own.

Choose co-managed IT when you already have an internal person or team you want to keep, but they're stretched thin. You keep the business knowledge in-house and add a provider for security, after-hours coverage, and bigger projects. Here's how our co-managed IT works.

Frequently asked questions

Is outsourced IT cheaper than hiring in-house IT?: For most small and mid-sized businesses, yes. A single in-house hire costs a salary plus benefits, training, and tools, and still leaves gaps during vacations or turnover. Outsourced IT spreads a full team across a predictable monthly fee, so you get broader coverage for less than the fully loaded cost of one employee.
How much does outsourced IT support cost?: Managed IT is billed on a predictable monthly basis, scaled to your environment. At 37 Forge, fully managed plans start at $135 per device per month, and an entry Essentials retainer starts at $37 per device per month plus network monitoring. A flat monthly fee makes budgeting predictable, with no surprise hourly bills when something breaks. See full pricing.
What is co-managed IT?: Co-managed IT is a hybrid model where your internal IT person or team keeps day-to-day, business-specific work, while an outside provider adds depth: security, after-hours coverage, infrastructure projects, and specialized expertise. It's a common choice for businesses that have some IT staff but need broader coverage without hiring more full-time employees.
How many employees should a business have before hiring in-house IT?: There's no fixed threshold, but most businesses under roughly 50 employees find a single in-house hire hard to justify, since one person can't cover security, networking, cloud, and help desk well. Outsourced or co-managed IT typically delivers broader expertise until headcount and daily IT demand are high enough to support a full internal team.
Is outsourced IT secure?: A reputable managed provider is usually more secure than a single in-house generalist, because security is handled by specialists using established frameworks, monitoring, and documented processes. For regulated industries such as healthcare, finance, and retail, a provider experienced in HIPAA, SEC, and PCI requirements can close compliance gaps an internal hire may not have time to manage.
Can you switch from in-house to outsourced IT without downtime?: Yes. A structured onboarding documents your systems, transfers accounts and access, and runs in parallel before any cutover, so the transition happens without interrupting daily operations. Many businesses move to a co-managed model first, keeping internal knowledge in place while the provider takes on security and infrastructure.

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