Managed IT vs. In-House IT: What Canadian Businesses Need to Know
The global managed services market is set to grow from USD 335.4 billion in 2024 to USD 731.1 billion by 2030, reflecting a major shift in how organizations handle IT. Yet many Canadian businesses still face the same question: build internal IT capabilities or outsource to experts?
Cost Comparison: The Numbers Speak for Themselves
- Managed IT Services: Typically $150–$200 per user per month (~$175 average).
- 20 users: ~$42K/year
- 50 users: ~$105K/year
- 100 users: ~$210K/year
- In-House IT: Even a basic two-person team (IT manager + technician) costs ~$185K/year before infrastructure, training, and tools.
Example: For a 30-person company, managed IT costs ~$54K/year versus ~$185K+ for in-house—a savings of over $130K annually.
Managed IT: Key Advantages
- Expertise on demand: Cybersecurity, cloud, compliance, emerging tech.
- Predictable costs: Fixed monthly fees with no surprise expenses.
- Scalability: Adjust resources as business needs change.
- Proactive support: Real-time monitoring, automated updates, and rapid response.
- Focus on core business: Free leadership and staff from IT distractions.
Considerations: Reduced direct control, reliance on provider, and potentially less customization—though strong providers work to align with business needs.
In-House IT: Strengths and Trade-Offs
Advantages:
- Direct control and immediate onsite response.
- Deep knowledge of company systems and culture.
- Maximum control over sensitive data.
- Fully customized solutions.
Challenges:
- Higher costs (salaries, benefits, infrastructure).
- Limited expertise breadth compared to MSPs.
- Coverage gaps (vacations, turnover).
- Risk of reactive rather than strategic focus.
Strategic Decision Factors
- Small & Mid-Sized Businesses (<100 employees): Managed IT usually offers better cost efficiency and expertise.
- Large Enterprises (>500 employees): Internal teams may be justified when IT is mission-critical.
- Regulatory environments: Some industries demand in-house control, but MSPs often bring stronger compliance expertise.
- Growth & scalability: Outsourcing adapts more easily to rapid changes.
Canadian Context
- Talent shortages: High IT salaries and concentrated talent pools make hiring tough.
- Regulatory requirements: Data sovereignty, bilingual needs, and federal/provincial rules add complexity.
- Economic efficiency: Managed services reduce the financial and recruitment burden while maintaining compliance.
Hybrid Models
Many organizations combine both approaches—retaining a small internal team while outsourcing specialized functions or after-hours support.
The RoundAssist Advantage
At RoundAssist, we deliver Canadian-based managed and co-managed IT services tailored to regulatory, economic, and cultural realities. We help businesses cut costs, scale efficiently, and maintain strategic control while accessing enterprise-grade expertise.
Ready to evaluate your IT strategy? Contact RoundAssist to explore managed, in-house, or hybrid solutions designed for Canadian businesses.
FAQ: Managed IT vs. In-House IT
What’s the cost difference?
For ~30 employees: Managed IT ≈ $54K/year vs. In-house ≈ $185K+/year. Managed services often cost less than one IT hire while providing a full team.
When is managed IT the best fit?
If you have fewer than 100 employees, need predictable costs, scalability, and broad expertise—especially outside major tech hubs.
What are the risks of in-house IT for small businesses?
High costs, limited expertise, gaps during vacations/turnover, and difficulty staying current with fast-changing tech.
Can managed IT understand my business?
Yes—quality providers invest in learning your systems and goals, while also bringing cross-industry best practices.
How fast can we switch?
Most businesses transition in 30–60 days, with providers managing knowledge transfer and minimising disruption.
Are hybrid models possible?
Absolutely—many businesses use co-managed IT, outsourcing specialized support while keeping a core internal team.
