As organisations grow, their technology needs become more complex.
At some point, many IT managers, operations directors, and business leaders face a difficult question:
Should we hire another IT employee or partner with a co-managed IT provider?
The answer depends on your organisation's size, internal capabilities, and business goals. However, when you compare the true cost of recruitment against the expertise available through co-managed IT, many organisations discover that outsourcing specialist support can deliver greater value for less money.
In this guide, we'll compare the costs, benefits, and limitations of both approaches to help you decide which option makes the most sense for your organisation.
The Short Answer
In many cases, co-managed IT is significantly cheaper than hiring another full-time IT employee.
Why?
Because a co-managed IT provider gives you access to an entire team of specialists for a predictable monthly cost, whereas hiring a single employee provides expertise in only one area.
For organisations with an existing IT manager or small IT team, co-managed IT often delivers broader skills, better cybersecurity support, and greater flexibility without the financial commitment of another permanent hire.
What Does an IT Employee Actually Cost?
When comparing costs, it's important to look beyond salary alone.
Many organisations budget for an employee's salary but overlook additional employment expenses.
Typical UK IT Salary Ranges
IT Support Technician
- £28,000–£40,000
IT Manager
- £40,000–£70,000+
Microsoft 365 Specialist
- £45,000–£80,000+
Cybersecurity Specialist
- £50,000–£90,000+
Infrastructure Engineer
- £45,000–£85,000+
Those figures only tell part of the story.
Additional Employment Costs
You also need to consider:
- Employer National Insurance
- Pension contributions
- Recruitment fees
- Training and certifications
- Holiday cover
- Sick leave
- Management overhead
- Equipment and software
As a rule of thumb, the true employment cost is often 20% to 30% higher than salary alone.
Example
A cybersecurity specialist earning £60,000 per year could easily cost:
- Salary: £60,000
- Employer costs: £12,000–£18,000
Total annual cost: £72,000–£78,000+
And that's before considering recruitment risks or future salary increases.
What Does Co-Managed IT Cost?
Most co-managed IT services are delivered through a monthly agreement.
Typical pricing ranges from:
£25–£100+ per user per month
depending on:
- Organisation size
- Existing IT capabilities
- Cybersecurity requirements
- Microsoft 365 management needs
- Infrastructure complexity
Example
An organisation with 75 users may invest:
£2,000–£5,000 per month
or
£24,000–£60,000 annually
for co-managed IT support.
While that may seem like a significant investment, it's often less than the cost of hiring a single specialist employee.
The Biggest Difference: One Person vs an Entire Team
This is where the comparison becomes interesting.
Hiring an Employee
You gain:
- One individual
- One skillset
- One availability schedule
- One point of failure
Even highly skilled IT professionals have strengths and weaknesses.
For example:
A cybersecurity expert may not be a Microsoft 365 specialist.
A Microsoft 365 specialist may not be an infrastructure expert.
An infrastructure engineer may not be experienced in compliance frameworks.
Co-Managed IT
You gain access to:
- Cybersecurity specialists
- Microsoft 365 experts
- Cloud consultants
- Infrastructure engineers
- Backup and disaster recovery specialists
- Strategic IT advisors
Without hiring each role individually.
This is often where the greatest value is realised.
A Scottish Housing Association Example
A housing association employs:
- One IT Manager
- 90 staff members
The IT manager is responsible for:
- User support
- Microsoft 365
- Cyber Essentials
- Supplier management
- Security
- Projects
The organisation considers hiring:
Option A
Cybersecurity specialist
Annual cost:
£70,000+
Option B
Co-managed IT partnership
Annual cost:
£30,000–£50,000
Services include:
- Security monitoring
- Microsoft 365 expertise
- Technical escalation
- Cyber Essentials support
- Strategic guidance
Result:
Access to multiple specialists for less than the cost of one hire.
A Scottish Charity Example
A growing charity with 50 users has:
- One IT Manager
- Limited budget
- Increasing cybersecurity concerns
The charity considers recruiting another technician.
Estimated annual employment cost:
£40,000–£50,000
Instead, they partner with a co-managed IT provider for:
- Cybersecurity management
- Microsoft 365 administration
- Backup oversight
- Project support
Annual investment:
£20,000–£35,000
Result:
Broader expertise while staying within budget.
Where Hiring an IT Employee Makes More Sense
Co-managed IT isn't always the answer.
There are situations where recruiting internally is the better option.
You Need Daily Onsite Support
If users require frequent face-to-face assistance, an internal resource may be valuable.
You Have Complex Business Applications
Some organisations rely on highly specialised systems that require dedicated in-house knowledge.
You Need Internal Technology Leadership
A senior IT manager can align technology strategy closely with organisational goals.
You Have More Than 200–300 Users
Larger organisations often benefit from a combination of internal resources and external support.
Where Co-Managed IT Usually Delivers Better Value
Co-managed IT is often the better option when:
You Need Specialist Expertise
Cybersecurity, Microsoft 365, cloud platforms, compliance, and infrastructure all require specialist knowledge.
Your IT Team Is Overloaded
Projects are delayed because operational support takes priority.
Recruitment Is Difficult
The UK technology skills market remains highly competitive.
You Need Flexibility
Support levels can be adjusted as requirements change.
You Want Predictable Costs
Monthly service agreements make budgeting easier.
Common Mistakes Organisations Make
Comparing Salary Only
Many organisations ignore employment-related costs.
Hiring to Solve a Skills Gap
Recruiting a generalist may not solve specialist challenges.
Underestimating Cybersecurity Requirements
Modern cybersecurity often requires multiple skillsets.
Failing to Consider Scalability
Hiring additional staff can become difficult as technology requirements evolve.
A Simple Decision Framework
Ask yourself these questions:
Do We Need More Capacity or More Expertise?
If expertise is the challenge, co-managed IT often provides better value.
Can One Person Solve Our Problems?
Modern IT environments rarely require just one skillset.
What Would Recruitment Actually Cost?
Calculate the full employment cost, not just salary.
What Happens If That Employee Leaves?
Consider recruitment risk and business continuity.
Could We Benefit from Multiple Specialists Instead?
Many organisations find this is the most important question.
The Hybrid Approach
Many growing organisations choose a hybrid model.
Internal Team
Responsible for:
- User relationships
- Business alignment
- Strategic oversight
Co-Managed IT Provider
Responsible for:
- Cybersecurity
- Microsoft 365
- Escalations
- Infrastructure expertise
- Project support
This approach often delivers the best balance of control, expertise, and cost efficiency.
Final Thoughts
When comparing co-managed IT to hiring another IT employee, the decision isn't simply about cost.
It's about value.
Hiring another employee provides additional capacity, but it also introduces recruitment costs, employment overheads, and reliance on a single individual.
Co-managed IT provides access to a broader range of expertise, increased flexibility, stronger cybersecurity capabilities, and predictable costs—often for less than the cost of a specialist hire.
For many organisations with an existing IT manager or small IT team, co-managed IT delivers the expertise they need without the financial commitment and complexity of expanding headcount.
The right choice depends on your organisation's goals, but for businesses seeking specialist support, improved cybersecurity, and scalable expertise, co-managed IT is often the more cost-effective option.
Want to Compare the Costs for Your Organisation?
Every organisation is different.
If you'd like to compare the cost of hiring internally against a co-managed IT partnership, speak to the Stratiis team for a tailored assessment based on your users, internal resources, and technology requirements.
Related Articles
What Is Co-Managed IT and How Does It Work?
How Much Does Co-Managed IT Cost?
