IT Model Comparison

Managed IT vs In-House IT:
The Real Cost & Coverage Breakdown.

Hiring an IT person feels like control. But when you run the numbers — salary, overhead, coverage gaps, and turnover — the comparison usually surprises Ontario business owners.

$75K–$110K

True annual cost, one IT hire (ON)

$15K–$20K

ETG managed IT, 10-person team/yr

3–6 mo

Average time to hire & ramp a replacement

24/7

Coverage with managed IT vs ~8 hrs/day in-house

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Side-by-Side

Feature-by-feature comparison.

FactorManaged IT (ETG)In-House IT Staff
Coverage hours24/7/365Business hours (typically)
After-hours response
Vacation / sick coverage
Breadth of expertiseFull team: network, cloud, sec, devOne person's skill set
Cybersecurity specialist
Cloud & M365 expertise
Vendor management
Strategic IT planningIncluded (vCIO)
Scales with headcount
Turnover riskNone — team continuityHigh — knowledge walks out
HR, benefits, overheadNoneSalary + 15–25% overhead
Tool & licence costsIncluded in planYou source & pay separately
Onboarding time30–60 days3–6 months to hire + ramp
Annual fully-loaded cost$15K–$20K10-person team, all-in$75K–$110Ksalary + overhead + tools

Salary data sourced from 2024 Ontario IT job market averages. ETG pricing as of 2025. Last reviewed May 2026.

The Real Math

The true cost of an in-house IT hire.

Most business owners think about base salary. But the real cost of an IT employee is significantly higher once you account for everything required to keep that person productive and your environment covered.

Coverage gaps are expensive: An IT person works 8 hours a day, 5 days a week. Your systems run 24/7. Every evening, weekend, and holiday is either uncovered or costs overtime.
Specialization is impossible alone: Cybersecurity, cloud architecture, networking, VoIP, and ERP integration are distinct specialties. One hire can't be expert in all of them — and gaps get filled by expensive contractors.
Turnover resets everything: When your IT person leaves, they take years of undocumented institutional knowledge with them. The average IT hiring process takes 90 days — minimum.
The overhead nobody budgets: Salary is the visible cost. CPP/EI, benefits, training, equipment, software licences, and workspace add 25–35% on top. A $70,000 hire costs $87,500–$94,500 fully loaded.

Cost breakdown

One in-house IT hire, Ontario, annualized

Base salary (mid-level)$68,000
CPP/EI employer contributions$5,800
Health & dental benefits$4,200
IT tools & software licences$4,500
Training & certifications$2,500
Vacation + sick coverage cost$3,800
Total fully-loaded cost~$88,800
ETG Managed IT (10 users)~$15,600

~$73,200 annual difference — with broader coverage, 24/7 availability, and no turnover risk.

See what ETG managed IT costs for your exact team size.

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When It Works

When in-house IT is the right call.

In-house IT is genuinely the right choice at scale. The math changes when you have enough users to justify full-time specialization.

50+ employees with complex, specialized IT infrastructure
Regulatory environment requiring on-site IT presence
Custom-built internal systems that need dedicated development
Desire to build an internal IT department over time (ETG can bridge the gap)
Already have IT staff but need after-hours or specialist coverage (hybrid model)

Signs You Need to Outsource

When managed IT is the better fit.

Under 50 employees — the cost ratio strongly favours an MSP
Your IT person is the only one who understands your environment
You've had an IT vacancy that took months to fill
After-hours incidents go unaddressed until the next morning
You don't have a dedicated cybersecurity resource
IT is reactive — you learn about problems when employees complain

“We tell clients to hire in-house when the math works. Under 40–50 users, it almost never does — and we'd rather have an honest conversation than win a client who's a bad fit.”

Kevin Nishimura — Evolved Technology Group

Common Questions

Frequently asked questions.

Not sure what's right for your business?

Book a free 30-minute assessment. We'll listen to your situation, run the numbers together, and give you an honest recommendation — even if that means pointing you elsewhere.

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