Is Outsourced IT for Small Businesses Worth It?
Learn the benefits of outsourced IT services for small business from Eric Brackett, BTI Communications Group founder and president.
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Running a small business is a balancing act: every dollar counts, every decision matters, and every technology investment can either move you forward or hold you back. One of the most frequent questions owners and managers face is: is outsourced IT for small businesses worth it?
The short answer is yes, but only if you understand what managed IT services are, how much they cost, and what they can deliver compared to hiring in-house. In this article, we walk you through costs and savings, to the types of services you can expect, so you can make a well-informed decision.
What Are Managed IT Services for Small Business?
Managed IT services for small businesses refer to all the IT functions that a company can outsource to a third-party provider, also known as a Managed Services Provider (MSP). Instead of hiring a full in-house team, you rely on an MSP to proactively manage, monitor, and secure your IT environment.
This can include everything from day-to-day IT helpdesk support to more advanced services such as cybersecurity, server monitoring, compliance management, and disaster recovery planning. The scope can be full outsourcing where the MSP becomes your entire IT department, or partial (also known as co-managed IT services) where they supplement your existing staff.
The key advantage of managed IT services is that they are proactive by design. Unlike the old “break-fix” model where you only call for help after something goes wrong, MSPs continuously monitor your systems to identify and fix issues before they disrupt your operations.
For small businesses, where a single server crash or ransomware attack can mean days of downtime, outsourced IT isn’t just a convenience, it’s often the difference between staying afloat or shutting down.
Why Small Businesses Should Consider Outsourced IT Services
Small businesses face a unique dilemma: they need the same IT infrastructure and security as large enterprises, but they don’t have the budget or staff to match. This is where outsourcing becomes a powerful equalizer.
One of the biggest reasons to consider outsourced IT is cost efficiency. Hiring IT talent in-house is expensive. According to the U.S. Bureau of Labor Statistics these are the average salaries of IT professionals:
- IT Support Specialist: $60,640
- Network/System Administrator: $96,800
- Security Analyst: $124,910
- IT Manager: $171,200
For a small business, building a team that covers all those roles is simply unrealistic. By outsourcing, you gain access to that breadth of expertise at a fraction of the cost.
Another reason is access to enterprise-level tools. MSPs invest in monitoring software, security platforms, and backup systems that would be cost-prohibitive for an individual small business. By outsourcing, you “rent” access to these advanced solutions without paying full license costs.
Finally, outsourcing provides peace of mind. Instead of worrying about whether your software or patches are up to date or if you backed up your data correctly, you could focus on growth, customers, and innovation while the MSP handles the technical side.
How Much Does Outsourced IT Cost for Small Businesses?
One of the most frequent questions I hear is: “How much does outsourced IT actually cost?” The answer is: it depends, but there are clear benchmarks.
Most MSPs charge on a per-user basis, with prices typically ranging from $150 to $400 per user per month. This pricing model makes costs predictable, which is critical for small businesses working with tight budgets.
When you compare that with the cost of hiring just one IT professional in-house, outsourcing quickly shows its value. For example, hiring a single IT support specialist costs more than $60K annually, not counting benefits, training, and turnover risk. By contrast, for that same cost, with outsourced IT services for small businesses you could cover the IT tasks of a dozen employees with far broader coverage and expertise.
Outsourced IT vs In-House IT: Which Is More Cost-Effective?
The debate often comes down to this: should a small business keep IT in-house or outsource it?
According to multiple surveys, including one by CompTIA:
- 46% of organizations reported saving around 25% on IT costs after outsourcing.
- 13% of organizations reported cutting IT costs by 50% or more.
In-house IT
- Pros: Dedicated staff who know your business intimately.
- Cons: High cost, limited skill set, difficult to scale.
Outsourced IT services for Small Businesses
- Pros: Access to a team of specialists (support, cybersecurity, compliance, infrastructure). Lower cost, proactive monitoring, and access to better tools.
- Cons: You depend on a provider, so choosing the right partner with strong SLAs is essential.
From my experience, outsourcing almost always comes out ahead for small businesses under 100 employees. The cost savings, combined with the breadth of expertise, make it the smarter option, unless you’re in a highly regulated industry with very specific in-house compliance needs.
Proactive vs Reactive IT Support: What’s Better for Small Businesses?
There are two main models of IT support:
- Reactive (Break-Fix): The provider only steps in after something goes wrong. It’s cheaper upfront but leads to more downtime.
- Proactive: The MSP continuously monitors, anticipates, and prevents issues before they disrupt operations.
For small businesses, proactive is the clear winner. Waiting for systems to fail before acting is a recipe for downtime, lost customers, and wasted revenue. A proactive approach costs more upfront but pays for itself many times over in reliability and security.
Types of Outsourced IT Services for SMBs
When you sign up with an MSP, what exactly do you get? Here’s a breakdown of the most common outsourced IT services that small businesses rely on:
Strategic IT Planning
Your IT strategy must align with your business goals. Without a roadmap, you risk buying tech that doesn’t support growth. MSPs help create that strategy, ensuring every investment drives real results.
Tech Stack Management
From servers and firewalls to video recorders and cloud software, your “tech stack” is the foundation of your business. MSPs keep everything patched, updated, and integrated so you avoid compatibility issues and security gaps.
Network & Server Monitoring
Continuous monitoring prevents costly outages. By tracking uptime, bandwidth, and suspicious activity, MSPs spot problems early before they turn into data breaches or system crashes.
Cybersecurity Services
Good IT outsourcing goes beyond firewalls. It should include endpoint protection, intrusion detection, vulnerability scanning, compliance monitoring, and even employee awareness training. One ransomware attack can take a small business offline for days. Proactive cybersecurity is non-negotiable.
IT Support & Helpdesk
Everyday IT issues, like login problems, software bugs, and printer malfunctions, can kill productivity. A responsive outsourced helpdesk ensures your staff stays focused on work, not waiting for fixes.
Backup, Continuity & Disaster Recovery
This service ensures your business can bounce back from ransomware, hardware failure, or natural disasters. It includes regular backups, tested recovery plans, and continuity strategies so downtime is minimized.
IT Compliance Management
Whether it’s HIPAA, PCI-DSS, GDPR, or local regulations, compliance is built into outsourced IT. MSPs provide the reporting, patch tracking, and access controls you need to stay compliant.
Vendor Management
Your MSP acts as the single point of accountability for all your tech vendors. No more finger-pointing between your ISP, software providers, and hardware suppliers, the MSP manages it all.
Key Benefits of Outsourcing IT for Small Businesses
Let’s sum up the main benefits I’ve seen from outsourcing IT:
- Cost savings: Typically, 25–50% less than in-house IT.
- Expertise: Access to specialists across cybersecurity, compliance, support, and more.
- Reduced downtime: Proactive monitoring keeps systems running.
- Improved security: From endpoint protection to compliance audits.
- Scalability: Easily scale IT up or down as your business grows.
- Focus: Free your team to concentrate on core business activities.
Challenges and Risks of Outsourced IT
Of course, outsourcing isn’t perfect. There are risks to be aware of:
- Provider dependency: If your MSP isn’t reliable, you’re stuck.
- Data security: You must ensure strong security practices are in place.
- Hidden costs: Not all providers are transparent, so read the contract carefully.
The good news is that with proper due diligence and a well-structured SLA (service level agreement), these risks can be minimized.
How to Choose the Right Managed IT Provider for Your Business
Choosing the right MSP is critical. Here are key factors I always recommend checking:
- Experience: Do they have proven expertise with small businesses like yours?
- Certifications: Cybersecurity, compliance, and vendor certifications show credibility.
- Cost transparency: Flat per-user pricing is best. Avoid vague or variable pricing models.
- References: Ask for testimonials and case studies from current clients.
Conclusion: Is Small Business IT Outsourcing Services Worth IT?
So, is outsourced IT for small businesses worth it? Based on my experience, the answer is a resounding yes, if you choose the right partner. The combination of cost savings, proactive monitoring, and access to expertise makes outsourcing a smarter choice than hiring in-house for most small businesses.
With the right MSP, you not only save 25–50% on IT costs, but you also gain peace of mind knowing that your systems are monitored, your compliance is managed, and your business is protected from cyber threats.
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Eric Brackett
Eric W. Brackett is the founder and president of BTI Communications Group, where he’s been helping businesses nationwide simplify communications, strengthen IT security, and unlock growth since 1985. Known for his client-first approach and “Yes! We Can” mindset, Eric transforms complex technology into reliable, cost-saving solutions that deliver long-term value.
Eric Brackett
Eric W. Brackett is the founder and president of BTI Communications Group, where he’s been helping businesses nationwide simplify communications, strengthen IT security, and unlock growth since 1985. Known for his client-first approach and “Yes! We Can” mindset, Eric transforms complex technology into reliable, cost-saving solutions that deliver long-term value.