Is it cheaper to hire internal IT or use a managed IT provider for a manufacturer?

For many 20–100 employee manufacturers, managed IT can be more cost-effective than a full internal hire when you factor in salary, benefits, coverage gaps, tooling, and security needs. The best choice depends on complexity and required response times.

What are the biggest risks of relying on a single internal IT person?

Common risks include single-point-of-failure coverage, limited after-hours response, and lack of specialized cybersecurity and compliance expertise. In manufacturing, those gaps can translate into longer downtime and higher security exposure.

When does internal IT make more sense for a manufacturer?

Internal IT often makes more sense as headcount and complexity increase—especially if you can fund multiple roles (helpdesk, infrastructure, security/compliance). Many smaller manufacturers still use a hybrid model with a managed partner.

Internal IT vs Managed IT - Manufacturing

Hiring an internal IT manager in Massachusetts costs $105,000–$135,000 annually, plus 25% in benefits, bringing total cost to $131,000–$168,000+. Adding cybersecurity tools and training often increases that figure to $160,000–$180,000 annually. Managed IT services for 75 employees typically cost $67,500–$135,000 annually, while providing a full team of specialists and compliance support.

True Cost of Internal IT

Salary: $115,000 average
Benefits (25%): ~$28,750
Security stack licensing: ~$15,000
Training: ~$10,000
Total ≈ $168,750 annually

Managed IT Cost Model

75 users:

Low range: $67,500/year
High range: $135,000/year

Includes 24/7 coverage, cybersecurity, compliance, and strategic planning.

Risk Comparison

Manufacturing ransomware impact: $250,000–$1,000,000

Downtime: $5,000–$10,000 per hour

A single internal IT employee cannot provide 24/7 coverage or full compliance documentation.

When Internal IT Makes Sense

200+ employees
Dedicated cybersecurity team
Multi-location operations

Real Example

A 70-employee metal fabrication company evaluated hiring internally at $165,000 total cost but implemented managed IT at $120 per user per month instead, saving approximately $78,000 annually while improving compliance posture.