What's better, Outsourcing IT or an internal IT team?
Is It Cheaper to Hire an IT Person or Outsource IT Support?
If you run a business, you already know how much of your success depends on technology. When everything works, your team can focus, serve customers, and move projects forward. When it doesn’t, productivity drops, frustration rises, and everyone starts looking for answers.
That’s often the point where a big question comes up:
Should we hire our own IT person, or would it make more sense to outsource IT support?
It’s not an easy decision — and it’s one that can have lasting effects on your bottom line, your team’s efficiency, and even your business’s long-term growth.
Many business owners we speak with across Greater Victoria and Metro Vancouver wrestle with this same choice. On one hand, having someone in-house feels reassuring. On the other, outsourcing offers access to deeper expertise and more predictable costs.
In this article, Digital Sky Solutions explores the pros and cons of each approach to help you make an informed decision. You’ll learn what each option really costs, how they differ in day-to-day operations, and when it makes sense to combine both through a co-managed model.
The True Cost of Hiring an In-House IT Person
Hiring internally can seem like the simplest path. You get someone who knows your systems, your people, and your day-to-day needs. But for small and mid-sized businesses, it’s not always that straightforward.
1. Salary and Benefits
The average IT specialist salary in British Columbia varies depending on experience and role. According to Indeed and Glassdoor, IT support professionals in Vancouver typically earn between $56,000 and $75,000 per year, while the Government of Canada Job Bank reports that experienced specialists across BC can reach up to $90,000 annually.
Taken together, that puts the average IT salary range in the province between $65,000 and $90,000, depending on skill level and job scope.
Once you include benefits, taxes, vacation pay, and ongoing training, the true annual cost of a single IT employee often exceeds $100,000.
2. Limited Coverage and Expertise
One person can only do so much. Even a skilled technician has limits when it comes to network management, cybersecurity, compliance, and long-term planning. When they’re away, your coverage gaps become immediately clear.
If that person leaves the company, the loss of institutional knowledge and downtime during replacement can be significant.
3. Strategic and Operational Challenges
Internal IT staff often spend most of their time reacting to problems. That leaves little room for proactive improvements — like optimizing infrastructure, hardening security, or planning for growth.
An in-house employee offers presence and familiarity, but they may lack the resources and bandwidth to deliver a comprehensive IT strategy.
The Real Value of Outsourced IT Support
Outsourcing your IT to a Managed Service Provider (MSP) offers a different model. Instead of relying on one person to do everything, you gain access to a team of experts who provide ongoing monitoring, maintenance, and strategy — often for less than the cost of a full-time hire.
According to Forbes, outsourcing IT is now a strategic move for both cost efficiency and access to specialized skills. It’s not just about cutting expenses; it’s about improving performance and resilience.
1. Predictable, Scalable Costs
Most MSPs operate on a fixed monthly fee, covering maintenance, support, cybersecurity, and consulting. That predictability makes it easier to budget, and as your business grows, your IT services scale with you — without new hires or hidden costs.
2. Broader and Deeper Expertise
A Managed IT team typically includes specialists in network infrastructure, cloud computing, cybersecurity, and compliance. That range of expertise ensures you’re not depending on one person’s skill set.
At Digital Sky Solutions, our clients benefit from that depth every day — gaining access to a full technical team while keeping costs consistent and manageable.
3. Proactive, Not Reactive
Outsourced IT focuses on preventing issues before they happen. Continuous monitoring, patch management, and data protection all happen quietly in the background so your team can focus on the work that drives your business forward.
4. Strategic Guidance and Long-Term Planning
Modern MSPs also provide Virtual CIO (vCIO) services, helping you plan IT investments and align technology with business goals. That’s expertise most small businesses couldn’t justify hiring internally.
What’s the Better Investment?
When comparing the two options, the financial picture becomes clearer — but cost is only part of the story.
| Cost Factor | In-House IT Employee | Outsourced IT Support (MSP) |
| Salary/Benefits | $85,000–$110,000 annually | Predictable monthly fee (often lower overall) |
| Coverage | 1 person, limited hours | Full team, 24/7 monitoring and support |
| Expertise | Generalist skill set | Specialists across multiple disciplines |
| Scalability | Must hire additional staff | Scales easily as your business grows |
| Risk | Limited coverage if staff unavailable | Redundant team support |
| Strategic Planning | Limited bandwidth | Included via vCIO or consulting |
| Cost Predictability | Variable | Consistent and transparent |
A recent analysis by the Business Development Bank of Canada (BDC) echoes this. BDC found that outsourcing can reduce costs, improve focus, and provide access to specialized expertise that most small businesses can’t maintain internally.
For most small and mid-sized organizations, outsourcing provides higher value, deeper coverage, and stronger long-term ROI.
When a Hybrid Approach Works Best
Of course, some businesses benefit from both. A co-managed IT model combines your in-house staff’s familiarity with an MSP’s expertise and tools. Your internal team retains control, while the MSP handles specialized tasks, large projects, and proactive system monitoring.
This balance is ideal for growing companies that want to stay agile without overstretching their internal capacity.
The Bottom Line
Choosing between hiring internally or outsourcing isn’t just a financial decision — it’s a strategic one. The right solution depends on your business size, goals, and how much time and risk you’re willing to manage on your own.
What matters most is ensuring your technology supports your people and your plans, not the other way around.
At Digital Sky Solutions, we are a Managed Service Provider in Greater Victoria and work with organizations across lower Vancouver Island and Metro Vancouver to make IT reliable, secure, and cost-effective. Whether you’re exploring you’re looking for strategic IT planning or considering a Managed IT partnership, we can help you understand your options and build a plan that fits your business.
Learn more about our Managed IT Services or contact us to start the conversation.
