Managed IT vs In-House IT: Which Is Right for Your Australian Business?

As Australian businesses grow, they face a common question: hire an internal IT person, or engage a managed IT provider? Both work. The right answer depends on your size, complexity and what you're actually trying to solve.

The cost comparison

An entry-level internal IT person in Australia costs $70,000–$90,000/year in salary alone, plus superannuation, leave, equipment and software — typically $85,000–$110,000 total loaded cost. A managed IT service for a 30-user business costs $3,600–$6,600/month — $43,000–$79,000/year — and covers 24/7 support, specialist expertise across security, cloud and networking, and a full team rather than one person.

What in-house IT does well

• Deep familiarity with your specific environment and users
• Immediate physical presence for hardware issues
• Full-time attention to your business only
• Faster decisions for businesses with complex internal politics around IT
• Better suited to very large or highly complex environments

What managed IT does well

• 24/7 coverage — an internal person can't work nights and weekends indefinitely
• Breadth of expertise — a team of specialists vs a generalist
• Continuity — no single point of failure when your IT person leaves
• Predictable cost — no recruitment, training or leave costs
• Cyber security depth — specialists in security, not a side responsibility
• Scale — add users without proportional cost increase

The hybrid model: co-managed IT

Many Australian businesses with 50–200 users run a hybrid: one or two internal IT staff who handle day-to-day requests and understand the business, supported by a managed IT provider for after-hours, specialist work and cyber security. This combines the best of both: internal context with external depth and coverage.

Which model suits which business

• Under 20 users: managed IT almost always wins — in-house cost is too high relative to need
• 20–50 users: managed IT usually wins — specialist depth beats a single generalist
• 50–150 users: co-managed often makes sense — internal plus managed for coverage and security
• 150+ users: in-house team plus managed makes sense — complexity justifies dedicated staff
• Regulated industries (finance, healthcare, defence): managed or co-managed — specialist security depth required