The Loaded Cost of Internal IT

When businesses think about managing their technology, many start by hiring an internal IT person or building an in-house IT department. On the surface, this seems like a straightforward solution — bring someone in full-time to handle the work.

But the true loaded cost of internal IT is far more complex than just “a salary.” And today, more businesses are realizing that outsourcing IT isn’t just about saving money — it’s about building a more flexible, capable, and scalable model for the future.

Costs of an IT Professional

When you hire internally, there’s more to account for than just compensation:

You’re also responsible for training, ongoing certifications, tools, software, benefits, vacation coverage, coverage for gaps in expertise, and more. And as your business grows, the demands on your IT team grow right along with it — which often means hiring more people, taking on more overhead, and dealing with greater management complexity.

It is easy to underestimate just how much is required to keep an internal IT function fully current, fully covered, and fully effective. 

The "Firm" Analogy

Here’s an easier way to think about it:

Would you hire one lawyer to handle everything for your business?

Of course not — you’d hire a law firm, where specialists handle different types of legal work: contracts, employment law, litigation, intellectual property, and more.

IT works the same way.

When a business hires one internal IT person — or even a small team — they are often hoping that person can handle everything the business needs from its technology. But modern IT is simply too broad for any one person to cover fully.

It’s not just about keeping the lights on. It includes strategy, security, cloud, compliance, infrastructure, business continuity — and more. Each area requires deep knowledge and constant learning.

Outsourced IT

Just as businesses have increasingly outsourced functions like legal, recruiting, and HR, outsourced IT is now one of the smartest and most common shifts.

Why? Because it provides:

  • More depth of expertise
  • More flexibility
  • Better scalability as the business grows
  • Less overhead and management burden

 
A note on outsourcing:

Sometimes the word outsourcing carries a negative connotation — people immediately think of sending work overseas or working with anonymous, distant providers.

But outsourcing IT doesn’t have to mean sending work overseas.

Many businesses outsource to trusted, local partners — often right in their own community. Outsourcing simply means choosing the best resource for the job, regardless of whether that resource is internal or external.

The Bottom Line

Today, more businesses are realizing that trying to solve all IT needs in-house doesn’t make practical or financial sense. The smarter path is to think like they do with legal, recruiting, and HR: partner with a firm that brings the full range of expertise — without the hidden costs of doing it internally.