MSP vs. In-House IT: When Should a Small Business Hire Its First Internal IT Employee?

By Adam Gross · CEO & Founder · July 30, 2026 · 12 min read

MSP vs in-house IT: most small businesses need managed IT at 10 employees, but an internal IT hire only makes sense around 75 to 100 users. Here is the math.

Most conventional small businesses should begin professional outsourced IT support at roughly 10 employees, evaluate an internal IT coordinator at 75 to 100 employees, transition to co-managed IT as complexity grows, and consider a full internal team around 150 to 250 users.

Topics: MSP vs in-house IT, managed IT services vs internal IT, outsourced IT, when to hire an IT employee, IT staffing ratio, co-managed IT services, small business IT department, New York, New Jersey

Filed under Managed IT.

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