What Are Managed IT Services?
Managed IT services provide ongoing technology support, monitoring, and management for a predictable monthly fee. Unlike break-fix support where you pay for problems after they occur, managed services focus on prevention, proactive maintenance, and continuous improvement.
In-House IT vs Managed Services: A Comparison
Cost Analysis
A dedicated in-house IT person in Sydney costs $80,000-$130,000 in salary plus 25-30% for superannuation, benefits, training, and tools. That's one person with limited specialisation covering all your needs. A managed service typically costs $2,000-$8,000 per month for a 20-50 person business, providing access to a team of specialists.
In-House IT Costs
- Salary: $80,000-$130,000+
- Super and benefits: +25-30%
- Training and certification: $5,000-$10,000/year
- Tools and software: $3,000-$10,000/year
- Recruitment costs when they leave
- Coverage gaps during leave or illness
Managed Services Include
- Team of specialists (networking, security, cloud, helpdesk)
- 24/7 monitoring and alerting
- Predictable monthly costs
- No recruitment or HR overhead
- Continuous coverage without gaps
- Access to enterprise tools and expertise
Key Benefits of Managed IT Services
1. Predictable IT Spending
Fixed monthly fees make budgeting straightforward. No surprise repair bills or emergency call-out fees. You know exactly what IT will cost each month, making financial planning easier.
2. Access to Expertise
MSPs employ specialists across networking, cybersecurity, cloud services, and more. You get access to expertise that would be impossible to hire in a single employee. When you need specific knowledge, it's available.
3. Proactive Maintenance
Managed services focus on preventing problems, not just fixing them. Continuous monitoring, automated patching, and regular maintenance reduce downtime and extend equipment life.
4. Enhanced Security
MSPs bring security expertise and tools that most SMBs couldn't justify individually. Security monitoring, threat detection, and incident response become part of your standard service.
5. Scalability
Managed services scale with your business. Adding users or new locations doesn't require hiring more IT staff. You pay for what you need, adjusting as your business grows or changes.
6. Focus on Core Business
Your leadership team shouldn't spend time troubleshooting IT issues. Managed services handle technology so you can focus on what you do best—running and growing your business.
"Small and midsize businesses that use managed services providers are 50% less likely to experience downtime from IT issues than those managing IT internally." — CompTIA State of IT Report
When In-House IT Makes Sense
Managed services aren't right for everyone. In-house IT may be better when:
- You have highly specialised or proprietary systems requiring dedicated expertise
- Regulatory requirements mandate on-site IT personnel
- You're large enough to build a complete internal IT team (typically 100+ users)
- IT is a core competency of your business (software companies, tech startups)
The Co-Managed IT Option
Co-managed IT combines internal IT staff with MSP support. Your team handles day-to-day operations while the MSP provides escalation support, specialised expertise, and strategic guidance. This works well for businesses with capable IT generalists who need specialist backup.
How We Researched This Article
This article was compiled using information from authoritative industry sources to ensure accuracy and relevance for Australian businesses.
Sources & References
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CompTIA State of the IT Industry Report
Industry research on IT service delivery trends
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Datto Global State of the MSP Report
Annual research on managed services industry
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Australian Information Industry Association
Peak body for Australia's digital industry
* Information is current as of the publication date. Cybersecurity guidelines and best practices evolve regularly. We recommend verifying current recommendations with the original sources.
Frequently Asked Questions
How do MSPs handle urgent issues outside business hours?
Quality MSPs provide 24/7 monitoring and emergency support. Critical issues trigger alerts to on-call engineers. Response times vary by severity—critical issues get immediate attention while routine requests wait until business hours.
What happens to our data if we change MSPs?
Your data remains yours. Reputable MSPs will assist with transition, providing documentation and working with your new provider. Review contract terms regarding data ownership and transition assistance before signing.
Can an MSP understand our specific business needs?
Good MSPs invest time understanding your business, industry, and goals. Look for providers with experience in your sector. Regular business reviews should align IT strategy with your objectives. An MSP that doesn't understand your business won't serve you well.
How do we evaluate if managed services are delivering value?
Track metrics like uptime, ticket resolution time, user satisfaction, and security incidents. Compare to your experience before managed services. Regular service reviews should demonstrate improvement and ROI. If you're not seeing value, discuss expectations with your provider.
Peer 2 Peer IT
With over two decades of experience in IT solutions for Sydney businesses, Peer 2 Peer IT provides expert insights on technology, security, and digital transformation.
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