Key takeaway: Remote IT support is often much cheaper and more flexible than hiring an in-house IT team. For a 40-employee business, remote IT support can save up to 69% annually.

Quick Overview:

Remote IT Support: Costs $125 per user/month on average. Includes 24/7 help, advanced cybersecurity, and scalability without hiring extra staff.
In-House IT Team: Costs $402 per user/month on average. Requires salaries, infrastructure, training, and additional hires for growth.

Cost Comparison Table:

Aspect	Remote IT Support	In-House Team
Annual Cost	$60,000	$192,600
Monthly Cost/User	$125	$402
Initial Setup	Often included	$1,500–$3,000
After-Hours Support	Included in premium plans	Requires overtime staff
Scalability	$100–$250/user/month	$55,000–$75,000 per hire

Why It Matters:

Cost Efficiency: Remote IT support eliminates expenses like infrastructure, training, and office space.
Expertise Access: Remote providers offer a wide range of specialists, while in-house teams are limited to hired staff skills.
Downtime Costs: Reliable IT reduces downtime, saving businesses thousands per hour.

For SMBs, remote IT support is often the smarter, more affordable choice, especially for businesses with 10–100 employees.

How Much Does it Cost to Rely on In-House IT Support?

In-House IT Team Expenses

Creating an in-house IT team involves a hefty investment in staff, infrastructure, training, and scaling efforts.

Staff Wages and Benefits

Here's a breakdown of local salary rates for IT roles:

Position Level	Annual Salary Range
Entry-Level IT Technician	$64,244
Junior IT Technician	$56,450
Mid-Level IT Technician	$92,114
Senior IT Consultant	Up to $160,000

On top of salaries, businesses need to offer benefits like medical, dental, and vision coverage. Since 89% of IT consultants report not receiving any additional perks, companies must provide attractive packages to draw skilled professionals. But salaries are just the beginning - next up is the cost of IT infrastructure.

Equipment and Software Costs

Setting up and maintaining IT infrastructure can be a major expense. Here's what to expect:

Hardware Setup: Networking equipment like servers, routers, and switches can cost between $50,000 and $200,000 initially.
Software Licensing: Ranges from $7 to $25 per device monthly.
Maintenance: Annual upkeep can cost anywhere from $10,000 to $50,000.
Security Updates: Budget an additional $10,000 to $50,000 annually to stay compliant with security standards.

In the first year alone, infrastructure costs can easily hit $200,000, with ongoing yearly expenses for maintenance and updates.

Staff Training Costs

Keeping your IT team up-to-date requires continuous investment:

Per Employee Training: Expect to spend $5,000 to $10,000 annually per employee.
Certification Programs: Costs vary depending on the area of specialization.
Professional Development: Includes attending industry conferences and workshops.
Consulting Support: Specialized training can cost $1,500 to $3,000 monthly.

Team Growth Costs

Scaling your IT team as your business grows comes with additional expenses:

Recruitment: Costs for advertising job openings, conducting interviews, and onboarding new hires.
Office Space and Utilities: Electricity alone can cost around $3,300 annually.
Integration Costs: For enterprise-level integrations, costs can range from $1 million to $5 million.

When you add up salaries, infrastructure, training, and scaling, the first-year cost of setting up even a basic in-house IT team typically exceeds $350,000. Depending on the size and complexity of the team, this figure can climb even higher.

Remote IT Support Costs

Remote IT support offers a more adaptable cost structure compared to maintaining an in-house team. Here's a breakdown of what to expect:

Monthly Service Fees

As of 2025, typical monthly costs for remote IT support are as follows:

Service Level	Per User Monthly Cost	What's Included
Basic Support	$37 - $75	Help desk and basic monitoring
Standard Package	$100 - $149	Network management and security
Premium Service	$150 - $400	24/7 support and advanced cybersecurity

Hardware costs average around $52 per desktop and $216 per server. Mobile devices are often covered in more comprehensive service plans.

Initial Setup Fees

Switching to remote IT support usually involves a one-time setup cost, which may include:

System assessment and documentation
Network configuration
Security software installation
User account setup
Data migration services

Some providers roll these fees into their long-term monthly agreements, reducing upfront expenses.

Extra Service Charges

Additional fees may arise for services like:

Emergency after-hours support
On-site visits
Hardware purchases
Specialized projects
Support for older systems

"Investing wisely in IT support is crucial for the sustained growth of small enterprises", says Richard Crooks, COO of Prototype IT.

Service Level Flexibility

The AISP model, charging between $100 to $250 per user monthly, provides businesses with the ability to:

Adjust service levels during peak or slow seasons
Scale support as staffing needs change
Modify coverage hours when necessary
Add or remove specialized services

According to recent market research, managed IT service providers are seeing annual growth rates exceeding 12%. The global IT outsourcing market is projected to surpass $800 billion by 2032.

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Cost Comparison Chart

Here’s a breakdown comparing the costs of an in-house IT team versus remote IT support for a 40-employee business:

Cost Category	In-House IT Team	Remote IT Support
Annual Total Cost	$192,600	$60,000
Monthly Cost per User	$402	$125
Initial Setup	$1,500 - $3,000 (consulting)	Included in monthly fee
Software Tools	$15 - $35 per endpoint/month	Included in service package
Staff Salary Costs	$45,000 - $65,000 per technician	N/A
Infrastructure	Self-managed	Provider-managed
After-Hours Support	Additional staff required	Included in premium plans
Scalability Cost	Hiring a new technician ($55,000 - $75,000)	$100 - $250 per additional user

For example, companies like Lindentech and CBM Corporate offer pricing models that cater to varying needs: Lindentech uses per-user pricing, while CBM Corporate opts for flat-rate monthly fees.

"The number one reason businesses move to outsourced IT is the need for technical expertise, as technology continues to become more complex and change at a faster rate. It's almost impossible to get the breadth of expertise you need to stay competitive, and it's not cost-effective to build and manage it yourself." - Ntiva

The financial impact of system downtime - averaging $300,000 per hour - further highlights the importance of reliable IT solutions. Providers like Austin Technology, which supports over 3,000 end-users, ensure costs remain predictable as businesses scale. This scalability and cost consistency are major advantages of remote IT support.

Key Savings Breakdown

Remote IT support offers clear financial benefits across several key areas:

Benefit Area	Annual Savings	Impact
Direct Costs	$132,600	68% reduction in total IT spending
Infrastructure	$15,600	Eliminates internal tool expenses
Scalability	$45,000+	No additional full-time staff needed

Indirect Business Costs

Indirect expenses play a major role in determining the overall effectiveness of IT support, even if they aren't always immediately visible.

System Downtime Costs

Downtime is one of those hidden costs that can hit hard, and its impact varies depending on whether you rely on remote IT support or an in-house team. For Perth SMBs generating $10M annually, downtime can rack up costs of up to $55,000 per day (around $6,884 per hour). With 76% of companies experiencing downtime in 2022 - a 25% jump from the previous year - this issue is growing.

Here's a breakdown of downtime costs by function:

Function	Cost per Minute of Downtime
Supply Chain Management	$11,000
E-commerce	$10,000
Customer Service	$3,700
Financial Management	$1,500
Infrastructure	$700

Security Breach Expenses

Security breaches are another costly challenge, with expenses varying based on how quickly incidents are addressed and the infrastructure in place. Data shows that organizations operating in remote work environments face $1.07 million higher breach costs compared to traditional setups. The time it takes to identify and contain breaches is also longer - 316 days for companies with over 50% of their workforce remote, compared to 258 days for those with less remote work.

"Higher costs of breaches in more distributed (i.e., remote work) environments, at $1.07M greater on average, combined with lower breach costs (ave. $1.76M) borne by organizations with mature Zero Trust Architectures, highlight the importance of continuous revalidation of trustworthiness of the people, devices, and services connecting into enterprise environments." – Maurice Uenuma

Beyond the direct costs of breaches, inadequate oversight can add to IT-related expenses, making strong management practices essential.

Management Oversight Costs

Proper management of IT resources demands attention at multiple levels. Here's how oversight requirements differ between in-house teams and remote support:

Oversight Area	In-House Team	Remote Support
Daily Management	Required	Minimal
Strategic Planning	Executive time intensive	vCIO services included
Skill Gap Management	Internal training needed	Provider managed
Compliance Monitoring	Self-managed	Provider oversight
Technology Partnerships	Limited vendor network	Extensive partnerships

"Without good leadership, the IT team can find itself chasing its tail, or constantly implementing 'band-aid' solutions without addressing the root causes of recurring problems." – Blake Cormier, Content Manager, E‑N Computers

Compliance failures alone can add $2.3 million to breach-related costs. Effective oversight not only reduces these risks but also improves service reliability, making managed IT models a strong option for many organizations.

Making Your IT Support Choice

Cost Summary

For a business with 40 employees, in-house IT costs about $192,600 annually (around $402 per user each month). In comparison, remote IT support averages $60,000 annually (approximately $125 per user monthly). That’s a potential savings of nearly 69% per year with remote support.

Here’s the breakdown:

Basic Support & After-hours: In-house requires hiring a technician ($75,000) plus overtime. Remote support includes this for $37 per user/month.
Infrastructure Management: In-house needs an additional manager ($85,000). Remote support incorporates this into the service package.
Specialized Expertise & Training: In-house teams require extra hires and $5,000-$10,000 annually for training. Remote support includes these as part of the service.

These numbers can guide you toward a more cost-effective IT support decision.

Decision Guide for Perth SMBs

Building on the cost comparison, here are key factors to consider when deciding on an IT support model:

Business Size Assessment
Outsourced IT support is often ideal for Perth SMBs with 10-100 employees. Cost efficiency tends to peak for businesses with 40-50 users, as shown above.
Service Level Requirements
Providing round-the-clock support can strain in-house teams and lead to overtime costs. Remote IT support, however, includes after-hours assistance as part of the service. Providers like Austin Technology - supporting over 3,000 end-users in Perth - show how tailored IT solutions can meet these demands.
Growth Considerations
In-house setups can require $150,000-$200,000 annually for a minimal team. Remote support offers predictable costs, with basic managed service plans starting at around $37 per user/month. This approach also scales easily as your business grows.