IT outsourcing vs an in-house IT person: costs, risks and when each makes sense

In shortAn in-house IT specialist fits when there is enough IT work for a full-time role and someone needs to be on site constantly; IT outsourcing fits when you need broader skills, stability and predictable costs. For many small and mid-sized companies a hybrid model works best: an internal person for daily issues and an external partner for infrastructure and security.

What does IT outsourcing mean?

IT outsourcing means an external IT partner takes over the maintenance of a company's computers, servers, network, email, user support and security under a contract.

It can cover all of IT or just part of it – for example servers, backups or Microsoft 365 administration.

How much does an in-house IT employee really cost?

Comparisons often look only at salary, but the real cost is wider.

  • Salary with taxes and bonuses.
  • Recruitment, selection and onboarding – especially when the employee leaves.
  • Training and certifications so knowledge stays current.
  • Tools: monitoring, remote management, backup and security software.
  • Cover during holidays or sick leave.

What are the risks of relying on one person?

The biggest risk is knowledge and access concentrated in one person's head. Without documentation, when that employee leaves the company may not even know all passwords or systems.

The second risk is skill limits. One person is rarely equally strong in networks, servers, cloud, cybersecurity and business systems.

What are the pros and cons of IT outsourcing?

An external partner brings a team's skills and processes, but scope and response times need to be agreed properly.

  • Pros: broader skills, predictable costs, documentation, no dependence on one person, monitoring and prevention.
  • Cons: less on-site presence, the scope must be clearly defined, and choosing a partner requires trust.

When does each model pay off?

There is no single right answer – the decision depends on company size, system complexity and how much work must be done on site.

  • In-house specialist – when there is genuinely enough IT work for a full-time role, lots of on-premise equipment or production systems, and constant office presence is needed.
  • IT outsourcing – when the company has up to a few dozen employees, much of the IT is in the cloud, and stability and security matter.
  • Hybrid model – an internal person handles daily issues while a partner maintains infrastructure, security and more complex projects.

What must an IT support contract cover?

For smooth cooperation, a contract should clearly describe the essentials. netgroup usually starts with an IT audit – it makes agreeing on the real scope much easier.

  • What is included and what is billed separately.
  • Response and resolution times by priority.
  • Backup and recovery procedures.
  • Documentation and handover of access when the contract ends.
  • Reporting: what, when and in which format.
Key takeaways
  • Compare total costs, not just salary.
  • The biggest single-person risk is undocumented knowledge and access.
  • A hybrid model often suits small and mid-sized companies best.
  • Define scope, response times and documentation clearly in the contract.

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Frequently asked questions

Is IT outsourcing suitable for a small company?

Yes. For small companies it is often a way to get all the IT skills they need without the cost of a full-time role.

Can an external IT partner help remotely?

Yes, most issues are solved via a secure remote connection, with on-site visits when needed.

What if we already have an IT person?

An external partner can complement them: take over servers, security, backups or provide holiday cover.

Where should we start when moving to IT outsourcing?

With an IT audit: devices, access and risks are inventoried, then a support plan with a clear scope is drawn up.

Andrius Stitilis

IT solutions and integration specialist, netgroup

Andrius Stitilis is an IT solutions, systems integration and AI implementation specialist at netgroup (NET group, UAB). He writes about how companies can use technology more effectively – from managed IT and CRM to AI, SEO and GEO.