Savings Calculator: In-House IT vs. Managed IT
Kalamazoo, MI | March 5, 2026
Successful businesses don’t just view IT as an expense; they view IT as an investment.
And why shouldn’t it be?
Investing in IT creates powerful returns, such as:
Automations for routine tasks like data entry
Cybersecurity and data retainment
Better customer experience
Easy scalability and growth
But like any investment, you need to know where to put your money in order to maximize returns. And that begs the question: should you invest in in-house IT or managed IT?
Today, we’re reviewing the affordability in-house IT and managed IT. And that’s not all, I even created a helpful calculator for you to help balance your in-house IT costs.
In-House IT Cost Calculator
In-House IT Cost Calculator
The In-House IT Cost Calculator
In-house IT is one great solution for businesses who need 24/7 hands-on IT support. But the question really worth asking is this: “Is in-house IT cost-effective?”
Well, it’s tempting to look at the wages of IT personnel as the most of the cost, but wages are only part of the picture. In reality. Two factors are driving up hidden costs: the IT Labor Shortage and the IT Skills Crisis.
The IT Labor Shortage
The IT Labor Shortage is a well-documented phenomenon. Simply put, there just aren’t enough qualified IT people out there to fulfill every role. And unfortunately, it’s getting worse.
Depending on the statistics you look at, between 66% and 90% of employers are struggling to find IT personnel with the necessary skills. As a result, wages for IT workers have been skyrocketing over time, with most IT personnel flocking to institutions with the best perceived benefits.
So, for most businesses, this creates two problems:
They struggle to afford the wages for IT hires
They struggle to carve out enough benefits for IT hires
In a labor shortage, the power to choose where to work remains with the laborer; and qualified IT people know this. So, if you’re hiring in-house, you need to prepare for a long hiring phase and an expensive commitment.
And I’m sorry to say the obstacles don’t end there: the IT Skills Crisis makes retaining your IT personnel even harder.
The IT Skills Crisis
Essentially, the IT Skills Crisis is a global issue caused by technology advancing faster than IT professionals can keep up.
With so much new software across a wide variety of industries—and especially with the rise of AI—it’s just too difficult for IT personnel to balance a full-time job with the necessary training. As a consequence, most companies face an impossible choice. They can either:
Constantly spend huge amounts of time and money to train their IT
Let their IT personnel fall behind but keep them working consistently
And here’s the kicker: if your IT team doesn’t get enough training, they won’t be able to do the job as time passes. However, if they do get enough training, they’ll need to be compensated with a raise or you risk losing them to the competition.
Will You Save Money with Managed IT?
For most companies, managed IT is a great way to save money, never worry about managing IT employees, and get reliable service.
That said, you may be surprised to learn that many companies choose to have both in-house and managed IT. That way, they can outsource all of the major hiring, management, and training will still keeping some IT essentials in-house.
If you’re interested in learning more about how much quality IT will cost you, click here to contact us for a free IT audit today!
