MSP vs In-House IT: Which Is Cheaper for an SMB? (2026)
The cost reality
A full-time IT hire in Canada costs roughly $65,000–$95,000 plus benefits and tools — over $8,000/month for one person who can't cover 24/7. An MSP spreads a whole team across that budget.
Where in-house wins
Once you're large enough to keep a full-timer busy, want someone on-site daily, or have specialized systems, in-house (or co-managed) starts to make sense.
The middle path
Co-managed IT pairs your person with an MSP for coverage and depth. IT Cares supports both fully managed and on-demand models.
Action checklist
- ✅ Count your users and devices
- ✅ Add up a hire's true cost (salary + benefits + tools)
- ✅ List the skills you actually need (security, cloud, helpdesk)
- ✅ Consider 24/7 and vacation coverage
- ✅ Compare against an MSP quote
FAQ
Is an MSP cheaper than hiring in-house IT?
For most businesses under about 25 staff, yes — an MSP covers more skills and hours than a single hire who costs $65k–$95k plus benefits. In-house wins at larger scale or for daily on-site needs.
What is co-managed IT?
Co-managed IT pairs your in-house person with an MSP, so you get on-site presence plus the depth and after-hours coverage of a full team.
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