Managed IT support or in-house IT: which is better for your business?

What's the real question?

The choice isn't really "a person or a provider". It's how you get enough skill, enough cover and enough security for a price that fits your size. A small business needs someone to answer the phone when a laptop won't start, and it also needs Microsoft 365 security settings done properly, backups tested, firewalls configured and a plan for the next three years. Those are different skills, and one person rarely has all of them.

What does an in-house IT person actually cost?

Salary is the number people start with, but it's only part of the cost. We've used two named salary benchmarks and added the employer costs every UK business pays.

All figures are illustrations. Salaries vary by location and experience, and managed IT figures are general UK market ranges, not Indigo prices. Small employers may be able to offset part of their National Insurance bill through the Employment Allowance (£10,500 for 2026/27), if it isn't already used elsewhere.

The table shows an honest picture. A comprehensive managed service for 40 users can cost as much as one employed engineer. The difference is what you get for it: one first-line engineer with 5.6 weeks of statutory holiday a year, or a team that covers first, second and third line, security operations and Microsoft 365 expertise, with no gap when someone is off sick or leaves. An IT manager costs roughly twice as much again, and still needs support underneath them.

Where does in-house IT win?

In-house IT makes sense when someone really needs to be on site all day: a large office, a manufacturing floor, a school, or a business running specialist systems that need constant attention. It also suits larger organisations that already have several IT staff, where the team is big enough to cover holidays and has room for specialists.

The other advantage is knowledge. An employee sees the business every day and hears about problems in the corridor. That's valuable, and it's the one thing a provider has to work harder to match, through documentation, regular reviews and an account manager who knows your business.

Where does managed IT support win?

For most small and medium businesses, managed support wins on breadth, resilience and predictability. You pay a fixed monthly fee that scales with headcount. You get protection against viruses and ransomware on every device (endpoint detection and response), email security and Microsoft 365 backup without buying and running them yourself. And you get cover that doesn't depend on one person's holiday dates.

Security is the biggest factor. The government's Cyber Security Breaches Survey 2025/2026 found 43% of UK businesses reported a breach or attack in the last year. It also found the share of micro businesses using an external cyber security provider rose to 44%, from 39% the year before. A dedicated in-house security team watching your systems 24/7 (a security operations centre) is out of reach for almost every business under several hundred staff.

What is co-managed IT, and when does it work?

Co-managed IT, sometimes called hybrid IT, splits the work. Your in-house person handles day-to-day requests, knows the staff and looks after on-site kit. The managed provider supplies the tools, monitoring, security, out-of-hours cover, escalations to second and third line, and strategic advice.

Example (illustrative): a 120-person renewable energy developer employs one IT officer at head office. They deal with new starters, laptops and local issues. A managed provider monitors every device and keeps it updated, handles email security and backup, investigates security alerts, and takes over the complex tickets. When the IT officer is on holiday, the provider's helpdesk picks up the calls. The business keeps a local face and gains a team behind them. Our renewable energy technology guide covers the field-engineer side of this.

Co-managed works best when responsibilities are written down: who owns which systems, who handles which tickets, and who has admin access to what. Without that, problems fall between the two.

In practice: how the model looks at Indigo

At Indigo Unified Communications, our experienced engineering team works across first, second and third line, backed by three consultants, a Service Delivery Manager and a Technical Director. That's the depth a single employee can't provide. We regularly work alongside in-house IT staff in a co-managed model, handling monitoring, security and escalations while they look after day-to-day needs. In September 2026 we handled 1,854 tickets, with a 13-minute average first response.

How Indigo does this. Indigo supports organisations of 10 to 500 staff across Scotland from Glasgow Business Park and Livingston, either as the whole IT function or alongside in-house staff. Every ticket gets a first response in under 30 minutes, and we're certified to Cyber Essentials Plus and ISO 27001:2022. Managed IT support →

What to do next

1. Work out what IT costs you today, including salaries, employer costs, tools, training and any outside help.
2. List the skills you need over the next three years: helpdesk, Microsoft 365, security, networks, phones and connectivity.
3. Decide what must happen on site, and how often.
4. If you have in-house staff, ask whether co-managed support would free them for the work only they can do.
5. Compare quotes on a like-for-like basis using our IT support cost guide, and look at our packages.