Humanfrog Lab

In-house IT, a managed IT partner or hybrid: what does each really cost us per year?

As a company grows, IT support stops being a side job. Users expect quick help, servers and backups need constant monitoring, and management wants predictable costs. You have to decide whether to hire your own administrators, outsource IT support to a managed IT services provider, or combine the two.

Comparing one salary with a monthly fee is misleading. One employee is not available all year, an in-house team needs tools and skills, and a managed IT partner does not always include everything. The calculator on this page works out how many people your chosen coverage requires and compares the yearly cost of all three models using your own figures.

In-house, MSP or hybrid: which costs us less?

Updated 7 min read

In-house, MSP or hybrid: which costs us less?

Enter the size of your environment, the coverage you need and the prices from your payroll and quotes. All default values are indicative, editable assumptions, not Humanfrog prices.

All default values are indicative, editable assumptions (as of November 2026), not Humanfrog prices or a quote. Enter figures from your own payroll, invoices and quotes.

Your environment
Managed laptops, desktops, phones and tablets.
Physical and virtual servers you manage yourselves.
How many hours a week someone must be reachable and able to act: 40, 60 or 168.
In-house staff
Indicative assumption for a system administrator: gross salary, employer social contributions, bonuses and benefits. Check against your payroll, your national statistics office or Eurostat labour cost data.
Roughly 2,080 hours a year, minus annual leave, public holidays, sick leave and training.
Premiums for night, weekend and holiday work and on-call duty as set by law, collective agreement or your own policy. Applied only to hours beyond a 40-hour week.
Workload estimate

Tickets, updates, monitoring, backup, network and documentation. The defaults are a starting point; if you track tickets, enter your own averages.

Tools and licences for an in-house team

Indicative prices; check current vendor price lists. With a managed IT partner, tools are usually part of the per-user price; check what your quote includes.

Managed IT partner (MSP)
Providers charge for out-of-hours coverage in different ways: as a surcharge, a higher tier or per call-out hour.
Inventory, documentation, tool rollout. Added to the first year only.
Time of the colleague who orders, approves and coordinates work with the partner.

Take the range from real quotes. Market prices vary widely with the services included, response times and the amount of on-site work.

Hybrid model
For example one person for on-site user support and knowledge of your business applications.
The part of the full MSP price you pay for co-management: monitoring, servers, security and out-of-hours coverage.

Yearly cost under your assumptions

The bars show the midpoint between the low and high MSP price.

Item In-house
lowest cost
MSP
lowest cost
Hybrid
lowest cost
In-house staff (FTE)
In-house staff cost
Out-of-hours premiums
Tools, licences and training
MSP services
Total per year
First year (with onboarding)
Per user per month

How many people an in-house team needs

Based on workload
For one continuously staffed seat at the chosen coverage
Used in the calculation (rounded up to 0.5)

This is an indicative calculation based on your assumptions. It does not include recruitment and staff turnover, projects, hardware, user licences (such as Microsoft 365) or the cost of downtime. For an accurate comparison you need an inventory of your environment and concrete quotes.

The calculation runs in your browser. Your answers are only sent if you submit the contact form below.

The three options at a glance

Once a company outgrows the stage where IT is looked after by "whoever knows computers", the question of how to organise IT support comes up. In practice you choose between three models. They differ in who does the work, who carries the risk of absence and who pays for the tools.

ModelWho does the workTools and licencesCover and availabilityCost
In-house IT teamYour employeesBought and maintained by youYour responsibilitySalaries and tools
Managed IT partner (MSP)The managed service provider's teamUsually included in the priceThe partner's responsibility under the contract (SLA)Monthly fee
Hybrid (co-managed IT)Your employee and the partnerUsually the partner'sThe partner covers absences and out-of-hoursSalary plus a lower fee

None of the models is always the cheapest. The size of your environment, the coverage you need, specialist skills and how quickly you must react to a problem all decide the outcome. Use the calculator for an indicative comparison based on your own figures.

How many people you really need

The most common mistake in the comparison is the equation "one IT administrator = one salary". One employee cannot be available all year. The EU Working Time Directive guarantees every worker at least four weeks of paid annual leave, and on top of that come public holidays, sick leave and training.

  • Full-time work means roughly 2,080 hours a year (52 weeks of 40 hours).
  • After leave, public holidays, sick leave and training, around 1,600 to 1,700 productive hours remain.
  • To cover business hours all year round you therefore need about 1.3 people, not one.
  • 24/7 coverage means 8,736 hours a year, which corresponds to roughly five to six people for a single continuously staffed seat.

The Directive also requires a minimum daily rest of 11 consecutive hours, so two or three people cannot sustain 24/7 coverage over time, even if they are willing to work nights. If you need night-time on-call duty, also budget for the premiums set by national law and collective agreements.

What the cost of an in-house team includes

Gross salary is only part of the cost. For a realistic comparison, add up:

  • employer cost: gross salary, employer social contributions, bonuses, benefits and allowances,
  • tools: remote monitoring and management (RMM), endpoint security (EDR), backup, a ticketing system, network monitoring,
  • skills: training, certifications and the time an administrator spends learning new systems,
  • recruitment and turnover: hiring, onboarding and the knowledge that leaves with a departing colleague,
  • premiums: on-call, night and holiday work if you require extended coverage.

The biggest risk of an in-house team, however, is not cost but dependence on one person. If passwords, configurations and knowledge of the systems exist only in one administrator's head, every holiday or resignation becomes a business risk.

How managed IT services pricing works

Managed service providers (MSPs) most often charge a monthly price per user or per device, with servers and network equipment priced separately. Market prices vary widely, so compare quotes only once you know what they include:

  • remote user support and on-site visits,
  • tools (RMM, EDR, backup) and their licences,
  • response and resolution times per priority, written into the SLA,
  • out-of-hours coverage and the price of call-outs at night and on holidays,
  • projects such as migrations, new sites or hardware refreshes, which are often billed separately,
  • one-off onboarding: inventory, documentation and tool rollout.

A managed IT partner brings a team with several specialists, built-in cover and established tooling. In return you give up some direct control and first-hand knowledge of your environment, so the contract and documentation must be clear.

The hybrid model: when it is the best choice

With co-managed IT, one employee or a small team stays in-house, while the partner takes over monitoring, servers, security, backup and out-of-hours coverage. The model works well when:

  • you need someone on site who knows the people and your business applications,
  • you already have a good administrator who cannot cover every area and every hour,
  • you want out-of-hours coverage without running your own shift rota.

The key to a hybrid model is a clear split of responsibilities. Put in writing who takes tickets, who approves changes, who handles updates and who responds to a security incident. Without that, tasks on the boundary between the teams fall through the cracks.

Risks no calculation shows

  • Exit from the contract: documentation, passwords and admin access must belong to you, and the contract must define the handover on termination.
  • Supply-chain security: if you fall under NIS2, your managed service provider is a supplier whose security measures you must assess and manage. NIS2 also brings managed service providers themselves into its scope.
  • Responsiveness: check in the SLA whether response time means time to first reply or time until work on the issue begins.
  • Incident readiness: who responds to ransomware on a Sunday? Check your readiness in the cyber attack readiness guide.

Checklist before you decide

  • How many users, devices, servers and locations do you actually manage?
  • What coverage do you really need: business hours, extended or 24/7?
  • Who covers for your administrator today during holidays?
  • Are the documentation and the list of access rights up to date and owned by the company?
  • Do the MSP quotes include tools, on-site visits and out-of-hours work?
  • What are the response times per priority, and what happens if they are missed?
  • How will you exit the contract or switch partners?

Humanfrog provides managed IT services either as a fully outsourced model or as co-management alongside your team, together with cloud infrastructure and security. If you would like to check the calculation against your own environment, talk to us.

Frequently asked questions

How much do managed IT services cost?
Managed service providers most often charge a monthly price per user or per device, with servers and locations priced separately. The price depends on the services included, response times, the amount of on-site work and out-of-hours coverage. Compare quotes only once you know exactly what they include.
What is an MSP?
An MSP (managed service provider) continuously manages, monitors and maintains your IT environment on your behalf: user devices, servers, network, backup and security. The service is usually paid as a monthly fee, with the terms set out in a contract and an SLA.
How many IT administrators do we need for 24/7 coverage?
24/7 coverage means 8,736 hours a year. Because one employee delivers around 1,600 to 1,700 productive hours after leave, public holidays, sick leave and training, a single continuously staffed seat needs five to six people. Mandatory daily rest periods mean a smaller team cannot sustain it over time.
Is IT outsourcing always cheaper than an in-house team?
No. In larger environments with a lot of specific work, an in-house team can be cheaper, especially if business-hours coverage is enough. For smaller companies and where extended or 24/7 coverage is required, a managed IT partner or a hybrid model is usually cheaper, because the cost of coverage and tools is shared across many clients.
What is co-managed (hybrid) IT?
In a co-managed or hybrid model, one employee or a small team stays in-house for on-site user support and business applications, while the managed IT partner takes over monitoring, servers, security and out-of-hours coverage and covers absences.
What should a contract with a managed IT partner cover?
Check what the price includes, response times per priority, out-of-hours coverage, the price of projects and the exit terms. Documentation, passwords and admin access must remain the property of the company. If you fall under NIS2, you must also manage the security risks of the supplier.

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