When Should a 20–75 Employee Business Hire an MSP Instead of Internal IT?

When Should a 20-75 Employee Business Hire an MSP Instead of Internal IT?

For many businesses with 20 to 75 employees, a Managed Service Provider (MSP) makes more sense than relying on a single internal IT employee—particularly when the business needs responsive support, cybersecurity, Microsoft 365 management, vendor management, and strategic IT planning.

Internal IT can absolutely make sense as an organization grows, especially when technology becomes complex enough to justify dedicated onsite resources. Some companies also benefit from a co-managed model, where internal IT works alongside an MSP.

The right answer depends on more than employee count.

It comes down to coverage, expertise, cybersecurity, cost, business complexity, and how dependent your employees are on technology.

For growing organizations throughout the Greater Sacramento region and Northern Nevada, here's a practical framework for deciding which model makes sense.

What Are Your Three Main IT Options?

Most growing businesses eventually choose between three models.

Option 1: Internal IT

You hire one or more employees responsible for technology.

Option 2: Managed IT

You outsource most or all IT management to an MSP.

Option 3: Co-Managed IT

Your internal IT employee or department works with an MSP that provides additional tools, expertise, coverage, cybersecurity, or strategic support.

None of these models is automatically better.

The objective is finding the model that gives your business the support and expertise it needs without creating unnecessary cost or risk.

1. Start With the Actual Work That Needs to Be Done

A common mistake is thinking of IT as one job.

It's not.

Even a 30-person business may need someone responsible for:

• Help desk support
• Microsoft 365
• Cybersecurity
• Endpoint management
• Servers
• Networks
• Backups
• Vendors
• Hardware purchasing
• User onboarding
• User offboarding
• Asset management
• Documentation
• Technology budgeting
• Strategic planning

Those responsibilities require different skill sets.

Someone who's excellent at helping employees troubleshoot Outlook isn't automatically a cybersecurity specialist.

A strong network engineer isn't necessarily the right person to manage technology budgeting.

And your most senior IT resource probably shouldn't spend half the day resetting passwords.

Before choosing internal IT or an MSP, define the actual responsibilities your business needs covered.

2. Consider Coverage, Not Just Headcount

Let's say you hire one excellent IT employee.

What happens when that person:

• Goes on vacation?
• Gets sick?
• Is working on a major project?
• Is already helping another employee?
• Leaves the company?

One person can only handle one problem at a time.

This becomes increasingly important as a company moves beyond 20 employees.

A 50-person business may have multiple employees needing assistance simultaneously while another technology issue requires onsite attention.

An MSP provides access to a team rather than relying on one individual.

At Integral Networks, whenever possible, a technician answers the phone live. If someone isn't immediately available, our response objective is generally 10-15 minutes.

The question isn't simply:

"Do we have an IT person?"

It's:

"Do our employees have reliable access to IT support when they need it?"

3. Compare the Cost of the Entire IT Function

Comparing an MSP's monthly fee with one employee's salary isn't a complete comparison.

An internal IT employee also has costs such as:

• Payroll taxes
• Benefits
• Vacation
• Training
• Recruiting
• Tools
• Security platforms
• Monitoring systems

And one employee may still require outside specialists for cybersecurity, major projects, cloud services, or complex infrastructure.

With managed IT, many of those capabilities are bundled into one predictable operating expense.

At Integral Networks, managed IT typically starts around $135-$185 per user per month, excluding Microsoft 365 licensing.

For example, a 25-person company would typically invest approximately:

$3,375-$4,625 per month

or:

$40,500-$55,500 per year

A 50-person company would typically invest approximately:

$6,750-$9,250 per month

or:

$81,000-$111,000 per year

Those numbers should be compared against the cost of building an equivalent internal capability—not simply one person's salary.

4. Cybersecurity Changes the Equation

Twenty years ago, an IT generalist could handle a large portion of a small company's technology needs.

Cybersecurity has made that much harder.

Modern businesses need multiple security layers covering areas such as:

• Identity
• Email
• Endpoints
• Microsoft 365
• Patching
• Backups
• Monitoring
• User access

At Integral Networks, our managed security approach includes technologies and services such as:

• Microsoft 365 Business Premium
• Deep Instinct endpoint protection
• Avanan email security
• Blokworx managed security services
• Managed patching
• Microsoft 365 security configuration
• Ongoing monitoring

An internal IT employee can certainly manage security.

But leadership needs to ask whether that individual has the time, tools, experience, and support required to do it effectively while handling every other IT responsibility.

5. Think About the Cost of Lost Employee Time

IT isn't only an expense.

Poor IT creates expenses of its own.

Suppose a 40-person engineering firm has one internal IT employee.

That employee is tied up on a server issue while three engineers need assistance.

Those engineers wait.

If each loses an hour, the business hasn't simply experienced three support tickets.

It has lost three hours of potentially billable professional time.

The same applies to attorneys, financial professionals, manufacturing employees, and other technology-dependent workers.

Fast support has economic value.

When evaluating IT models, ask:

How much does it cost our business when employees can't work?

6. Internal IT Has Some Real Advantages

There are situations where internal IT is the better choice.

An internal employee may develop extremely deep knowledge of:

• Company workflows
• Specialized applications
• Employees
• Internal projects
• Business processes

They're also physically present every day.

For larger organizations or businesses with highly specialized technology requirements, those advantages can be significant.

That's why the decision doesn't always need to be:

Internal IT OR MSP.

Sometimes the best answer is both.

7. When Co-Managed IT Makes Sense

Co-managed IT allows your internal technology employee or department to retain responsibility for the areas where they provide the most value while an MSP fills gaps.

For example, internal IT might handle:

• Employee relationships
• Specialized business applications
• Internal projects
• Daily onsite needs

while the MSP provides:

• Cybersecurity
• Monitoring
• Microsoft 365 expertise
• Backup management
• Escalation support
• Additional help desk capacity
• Strategic guidance

This can be particularly effective as organizations move toward the upper end of the 20-75 employee range and beyond.

Instead of replacing internal IT, the MSP gives that person a larger team behind them.

8. Strategic Planning Is Often the Missing Piece

One of the biggest differences between basic IT support and mature IT management is planning.

Someone needs to answer questions like:

• Which computers need replacement next year?
• What should our IT budget be?
• What cybersecurity improvements should we prioritize?
• Is our infrastructure ready for growth?
• What happens if we open another office?
• Which vendors and licenses are we paying for?
• What major projects should leadership expect?

Internal IT can provide this planning.

An MSP can provide it.

The important thing is that someone is actually doing it.

At Integral Networks, our managed IT model includes:

• Quarterly Business Reviews
• Asset lifecycle management
• Technology budgeting
• Vendor management
• Technology roadmaps
• vCIO guidance

If leadership only hears from IT when something breaks, there's a strategic gap regardless of which staffing model you use.

9. Documentation Matters More Than Who Provides the Support

Here's another question leadership should ask:

What happens if our IT person disappears tomorrow?

Would anyone know:

• Administrative credentials?
• Network configuration?
• Vendor contacts?
• Backup systems?
• Microsoft 365 configuration?
• Hardware inventory?
• Security platforms?
• Upcoming projects?

Businesses shouldn't become dependent on information that exists only inside one person's head.

The same standard applies to an MSP.

A mature IT operation should maintain documentation so the environment remains supportable even when individual people change.

10. Vendor Management Consumes More Time Than Most Businesses Expect

Growing organizations often accumulate a surprising number of technology vendors.

You may have separate providers for:

• Internet
• Phones
• Microsoft licensing
• Legal applications
• Engineering applications
• Printers
• Cloud services
• Security systems
• Line-of-business software

When something stops working, those vendors sometimes point at each other.

The internet provider says it's the firewall.

The software vendor says it's the network.

The network vendor says it's the application.

Someone needs to own the problem.

Vendor management is one of the less visible benefits of a mature managed IT relationship.

Your employees shouldn't have to become technology referees.

A Simple MSP vs. Internal IT Framework

Use these five questions when evaluating your options.

1. SUPPORT

Do employees receive help quickly when they need it?

2. SECURITY

Do we have the expertise and tools required to protect the business?

3. COVERAGE

What happens when our primary IT resource isn't available?

4. STRATEGY

Who is managing our budget, lifecycle, vendors, and technology roadmap?

5. COST

What does it cost to provide all four capabilities—not just basic technical support?

If your current model performs well in all five categories, you may not need to change anything.

If several are weak, it's worth evaluating alternatives.

When an MSP Usually Makes Sense

Managed IT is often a strong fit when:

• You have 20-75 employees.
• Technology is critical to daily operations.
• Employees need responsive support.
• You don't want to build an internal IT department.
• Cybersecurity has become difficult to manage.
• Microsoft 365 needs more active management.
• Technology spending is unpredictable.
• Nobody owns the IT roadmap.
• Your current support is reactive.

Smaller organizations may also be a fit when their technology environment is complex or security requirements are significant.

When Internal IT May Make More Sense

Internal IT may be appropriate when:

• Your business requires constant onsite technical presence.
• You have highly specialized internal systems.
• Technology operations require dedicated full-time attention.
• Your organization is large enough to support multiple IT roles.
• Internal knowledge provides substantial business value.

Even then, outside specialists may still provide cybersecurity, project, or strategic support.

When Co-Managed IT May Be the Best Answer

Co-managed IT deserves consideration when:

• You already have a capable IT employee.
• That employee is overloaded.
• Cybersecurity requires expertise they don't have.
• You need backup coverage.
• Major projects are consuming too much time.
• You want additional help desk capacity.
• Leadership needs stronger strategic planning.

A good MSP shouldn't automatically view internal IT as competition.

The goal should be building the right IT capability for the business.

Greater Sacramento Businesses: MSP or Internal IT?

Integral Networks supports growing organizations throughout the Greater Sacramento region, including:

• Sacramento
• Roseville
• Rocklin
• Folsom
• Elk Grove
• Woodland
• Stockton
• Modesto
• Surrounding communities

Our primary managed IT focus is organizations with 20 or more employees, including law firms, engineering and architectural firms, manufacturers, financial services companies, and other technology-dependent businesses.

For many organizations in this range, outsourcing IT provides access to a broader technical team without the expense and management requirements of building a complete internal IT department.

Northern Nevada Businesses: MSP or Internal IT?

Our second primary service area is Northern Nevada, including:

• Reno
• Sparks
• Carson City
• Surrounding communities

Northern Nevada companies experiencing growth often reach the same decision point:

Technology has become too important to manage informally, but the organization may not yet need—or want—to build an entire internal IT department.

Managed or co-managed IT can bridge that gap.

Final Thoughts

The question isn't really:

"Should we hire an IT person or an MSP?"

The better question is:

"What IT capabilities does our business need, and what's the best way to provide them?"

For many businesses with 20-75 employees, an MSP provides the strongest combination of:

• Responsive support
• Broader expertise
• Cybersecurity
• Coverage
• Predictable costs
• Strategic planning

For others, internal IT or a co-managed approach makes more sense.

The important thing is evaluating the entire IT function instead of simply comparing an employee's salary with an MSP invoice.

Your business needs support when something breaks.

But it also needs someone working to make sure fewer things break in the first place.

Ready for a Second Opinion?

If you're deciding whether to hire internal IT, outsource to an MSP, or combine the two, Integral Networks can help you evaluate the options based on your actual environment and business requirements.

We provide managed IT, cybersecurity, Microsoft 365 management, and strategic technology planning for growing organizations throughout the Greater Sacramento region and Northern Nevada.

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