As your business grows, technology becomes increasingly important—and so does deciding who should manage it. For businesses with 5–50 employees, hiring a full-time IT employee often costs $75,000–$120,000+ annually before benefits, payroll taxes, training, and certifications. By comparison, comprehensive managed IT services typically range from $150–$250 per user per month, providing access to an entire team of IT professionals for a predictable monthly investment.

For more than 25 years, NextX has helped businesses throughout Billings, Montana, and Yellowstone County evaluate this decision. The right choice depends on your size, growth plans, compliance requirements, and the level of technology expertise your business needs.

Understanding the Difference

An internal IT employee works exclusively for your business and manages your daily technology operations.

A Managed Service Provider (MSP) delivers an entire team of specialists—including help desk technicians, cybersecurity professionals, cloud experts, and strategic technology advisors—for a predictable monthly fee.

For most organizations with fewer than 50 employees, outsourcing provides broader expertise and greater business value.

The Five Factors Every Business Should Consider

1. Total Cost

Many business owners compare only salary versus monthly service fees.

The actual cost of hiring internal IT also includes:

  • Payroll taxes
  • Health insurance
  • Retirement benefits
  • Paid vacation
  • Ongoing training
  • Technology certifications
  • Recruiting costs
  • Backup coverage during vacations and illness

Managed IT provides predictable monthly budgeting without these additional employment expenses.

2. Depth of Expertise

One IT employee cannot specialize in everything.

Today's businesses rely on:

  • Microsoft 365
  • Cybersecurity
  • Cloud computing
  • Networking
  • Backup & Disaster Recovery
  • Compliance
  • Artificial Intelligence tools
  • Business continuity planning

An MSP provides access to specialists in each of these areas.

3. Availability

If your only IT employee is on vacation, sick, or leaves the company, who supports your business?

Managed IT providers typically offer:

  • Multiple technicians
  • Help desk coverage
  • Escalation teams
  • After-hours support
  • Business continuity

Your business isn't dependent on one individual.

4. Cybersecurity

Cybersecurity has become one of the biggest reasons businesses outsource IT.

A quality MSP continuously monitors:

  • Endpoint security
  • Email threats
  • Multi-Factor Authentication
  • Patch management
  • Backup systems
  • Network security
  • Employee security awareness

Protecting your business requires ongoing attention and specialized expertise.

5. Strategic Planning

Technology should help your business grow.

A proactive MSP doesn't just fix problems—they help plan for the future through:

  • Technology roadmaps
  • Budget planning
  • Hardware replacement schedules
  • Microsoft 365 optimization
  • AI readiness
  • Business continuity planning

Strategic guidance helps businesses make smarter technology investments.

Internal IT vs. Managed IT Comparison

Category Internal IT Employee Managed IT Provider
Annual Cost $75,000–$120,000+ Predictable monthly investment
Number of Experts One Entire team
Vacation Coverage No Yes
Cybersecurity Specialists Usually Limited Included
Microsoft 365 Expertise Varies Included
Strategic Planning Depends on experience Included
After-Hours Support Limited Typically Available
Scalability Limited Easily Scales with Growth

When Hiring Internal IT Makes Sense

Hiring an internal IT employee may be appropriate if your business:

  • Has more than 75–100 employees
  • Operates highly specialized systems
  • Requires constant onsite support
  • Has a large technology department already in place

Some larger organizations benefit from combining internal IT staff with an MSP for additional expertise and cybersecurity support.

When Outsourcing IT Makes Sense

Managed IT is often the best choice when your business:

  • Employs between 5 and 50 people
  • Wants predictable monthly costs
  • Needs stronger cybersecurity
  • Doesn't require a full-time IT employee
  • Wants access to multiple technology specialists
  • Plans to grow over the next several years

For many small businesses, outsourcing delivers enterprise-level expertise at a fraction of the cost of building an internal IT department.

Why Businesses Choose NextX

For over 25 years, NextX has helped businesses across Billings and Yellowstone County simplify technology with:

  • Customized IT Solutions
  • No Geek-Speak communication
  • 100% No-Small-Print Satisfaction Guarantee
  • Peace of Mind IT Management
  • Local, responsive support
  • Strategic technology guidance

Our goal is to become a trusted technology partner—not just another IT vendor.

Frequently Asked Questions

Is outsourcing IT less expensive than hiring an employee?

For many businesses with 5–50 employees, yes. Outsourcing typically provides access to a broader range of expertise at a lower overall cost than employing a full-time IT professional.

Can an MSP replace an internal IT department?

For many small businesses, yes. An MSP can provide proactive support, cybersecurity, cloud management, strategic planning, and help desk services that would otherwise require multiple employees.

What if I already have internal IT?

Many organizations combine internal IT staff with a Managed Service Provider. Internal employees focus on business-specific initiatives while the MSP provides monitoring, cybersecurity, specialized expertise, and additional support.

How do I know which option is right?

The right decision depends on your company's size, growth plans, technology complexity, and budget. A technology assessment can help determine which approach best supports your business.

Final Thoughts

Choosing between hiring an internal IT employee and outsourcing to a Managed Service Provider isn't simply a financial decision—it's a strategic one.

For businesses with 5–50 employees, managed IT often delivers greater expertise, stronger cybersecurity, predictable budgeting, and access to an entire technology team without the expense of building an internal department.

With more than 25 years of serving businesses throughout Billings and Yellowstone County, NextX helps organizations make technology decisions that support long-term growth, security, and peace of mind.

If you're evaluating your options, we'd be happy to discuss your business goals and recommend the approach that best fits your needs.