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The True Cost of Having an In-House IT Department

The True Cost of Having an In-House IT Department

You may have heard that having an in-house IT department can be costly and that outsourcing is often more advantageous. But what does that really mean for your business?

There are a lot of factors to consider when making the decision to bring IT in-house or outsource, and the cost is just one of them. In order to make an informed decision, you need to weigh the pros and cons of each option and assess your specific needs.

We are going to take a closer look at the hidden cost of having an in-house IT department and what you need to think about before making a decision.

The Hidden Cost of an In-House IT Department

When it comes to having an in-house IT department, you might be thinking that is the most efficient way to get it done. After all, you're paying your staff to manage and maintain your IT infrastructure, right?

Well, not so fast. You could be paying up to 300% more for lesser services.

How is this possible?  By outsourcing your IT needs to a third-party provider, you're tapping into a team of experts who are dedicated to managing and maintaining your infrastructure. They have the latest best-in-class technology and tools at their disposal, and they're constantly keeping up with the latest trends and developments in the industry.

The True Cost of IT Downtime

How much is your business worth to you? What's the value of your data?

No matter how well-trained your IT staff is, there will always be time when things go wrong.  Technology is complex, and even the most minor change can significantly impact your IT infrastructure's performance. 

This often results in significant downtime for businesses, which can significantly impact productivity and the bottom line.  The cost of downtime can be as much as $5,600 per minute.

That doesn't account for the cost of lost data, breaches, failed backups, and other IT disasters.  In many cases, downtime costs are much higher than preventative maintenance.  And when an IT professional is out for vacation or sick, businesses are at an even higher risk for downtime.  

These are tough questions to answer, but they're important ones to ask. Because the truth is, a large in-house IT department can be a drain on your resources—both financially and operationally.



You see, when your IT goes down, it can cost you a lot of money in lost productivity. And that's just the tip of the iceberg. There are other hidden costs to consider, like the cost of hiring and training IT staff and the cost of maintaining hardware and software.

You're not just paying for the labor costs when you have an in-house IT department. You're also paying for the benefits, the equipment, and the office space. And on top of that, you're responsible for training and managing your IT staff.

All of that adds up to a lot more than you may have thought. In fact, it could be costing you tens of thousands of dollars every year. That's money that could be invested back into the company.

So why not consider outsourcing your IT needs instead? You'll get all the benefits of having a complete IT department without paying the high price tag and investing in all the latest solutions.


When you are thinking about setting up your own IT department, it's important to understand the full cost of doing so.

There are a lot of other hidden expenses that come with having your own IT department. For starters, you need to factor in the cost of personnel—you need the right people with the right skills to run an effective IT operation. Then there's the cost of hardware and software, along with ongoing maintenance and support.

And don't forget about hidden costs like training and travel. It can be expensive to keep your team up to date on the latest technology trends. Then there are the infrastructure costs—you need to ensure you have the right IT infrastructure to support your operations.

All told, the cost of setting up and running an in-house IT department can be surprisingly high. 

How Systems X Can Help You Save Money on IT Costs

Technology is crucial to the operation of a small company, but it also comes with a hefty price tag. If you're on a tight budget, it's challenging to decide whether to hire more IT staff or work with an outside Managed IT Services Partner.

Systems X is a team of IT veterans with extensive experience in solving complex technology challenges that drive business results. Our technology solutions make business sense, and we'll do it at a fraction of the cost of having an in-house IT department. Contact us today to learn more about our services.

There are many great options for outsourcing your IT needs, and Systems X is one of the best. Contact us today to discuss your needs and see how we can help you reduce costs and improve efficiency.



Just to recap, one is the cost of employee benefits. In order to lure top talent, you'll need to offer competitive salaries and benefits, and that can be a major expense. Another cost is the cost of hardware and software.

You'll need to purchase adequate hardware and software to support your team and keep in mind that hardware becomes obsolete quickly and needs to be replaced often.

And finally, there's the cost of training and maintaining your in-house IT staff. This can be a significant expense, especially when you consider the fact that employees often move on to other jobs after a few years.

As you learned here, having an in-house IT department can be quite the investment. Several hidden expenses can quickly add up, and before you know it, you're shelling out a lot of money for a service that could be provided more cost-effectively by an outside IT partner.

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