For most 20–60 employee businesses, managed IT services are more cost-effective and lower risk than hiring internal IT. A full-time internal IT employee typically costs $100,000–$130,000+ per year once salary, super, leave, and training are included. In comparison, managed IT services usually cost $150–$220 per user per month, providing access to a full team of specialists, built-in cybersecurity, and proactive support.
1. Cost Comparison: Internal IT vs Managed IT
Hiring internal IT involves more than just salary. In addition to wages, businesses must account for superannuation, leave, training, and the risk of having a single point of failure. Managed IT services spread these costs across a team of specialists and offer predictable per-user pricing, making budgeting easier for growing SMBs.
2. Skill Coverage and Availability
An internal IT hire is usually a generalist, meaning one person is responsible for support, infrastructure, security, and vendor management. Managed IT services provide access to a team of specialists, including cybersecurity, cloud, and compliance experts. This also ensures coverage during leave, illness, or after hours, reducing the risk of downtime caused by a single point of failure.
3. Cybersecurity Risk and Responsibility
With internal IT, cybersecurity often competes with day-to-day support tasks, increasing the risk that threats go unnoticed. Managed IT services typically include proactive monitoring, endpoint protection, email security, and backups as part of the service. This shifts cybersecurity responsibility from a single individual to a dedicated team, reducing the likelihood and impact of cyber incidents for SMBs.
4. Scalability as the Business Grows
As businesses grow from 20 to 60 employees, IT needs change quickly. Hiring additional internal IT staff often lags behind growth and increases overhead. Managed IT services scale immediately as staff numbers increase, allowing SMBs to add users, devices, and security coverage without recruitment delays or major cost spikes. This makes managed IT more flexible for growing businesses.
5. When Internal IT Actually Makes Sense
Internal IT can make sense when a business reaches around 100+ employees, has complex in-house systems, or runs an internal development team that needs dedicated daily support. For many growing SMBs, a hybrid model also works well — for example, one internal IT coordinator supported by a managed IT provider for cybersecurity, infrastructure, and escalation support. The best option depends on complexity, risk, and the speed of growth.
Example: 45-Employee Sydney Business
A Sydney-based business with approximately 45 employees considered hiring an internal IT resource at a salary of over $110,000 per year. Instead, they chose a managed IT service at $195 per user per month, gaining access to a full support team and built-in cybersecurity. Within the first few months, security incidents decreased, onboarding new staff became faster, and IT costs became predictable without the risk of relying on a single internal hire.
Why SMBs Choose TECHD Group
TechD Group supports Sydney-based SMBs (20–60 employees) with a cybersecurity-first managed IT approach. Clients value predictable per-user pricing, access to senior-level expertise, and having a single point of contact for IT, security, and cloud services. Local support across the Northern Beaches, CBD, and North Sydney ensures faster response and clearer communication.
