The Hidden Costs of DIY IT: Why Growing Companies Need a Managed IT Partner

For many small and mid-sized companies, an hour of IT downtime costs anywhere from $5,000 to $16,700 per minute. Relying on one IT generalist or your “tech-savvy” employee is a considerable risk.. What looks like savings can quietly drain your budget, stall growth, and expose you to costly risks.

You already know technology is central to everything from serving customers to protecting data. But as your company scales, the IT services you depend on become too complex for one person to manage effectively. Managed IT services provide you with enterprise expertise, predictable pricing, and cost savings, all without the need to hire a larger IT team.

In this article, you’ll see why the “do-it-yourself” approach to IT is more expensive and risk-prone than it appears, and how the right partner can help you:

• Eliminate costly downtime before it disrupts operations
• Strengthen security to prevent data loss and compliance violations
• Free your team to focus on driving revenue and business growth

If you want to protect your bottom line and scale with confidence, keep reading; the numbers will speak for themselves.

Key takeaways

• Treat IT as a strategic asset by freeing your team from constant troubleshooting so they can focus on innovation and long-term goals.
• Use scalable cloud services to remove bottlenecks, improve flexibility, and adapt quickly to market changes.
• Replace reactive fixes with a proactive IT plan that aligns technology decisions to measurable business results.
• Partner with a Managed IT Services provider to close gaps in expertise, security, and compliance while supporting growth.

The Hidden Risks of DIY IT

Many Small and Medium-sized Businesses (SMBs) take pride in having “someone who knows tech” handle all of their IT needs. Maybe it’s a single employee who’s been with you for years or a trusted manager who’s good with Microsoft systems and software.

The problem? That comfort can hide serious vulnerabilities. A “duct-tape IT” approach can’t keep pace with evolving technology, rising cybersecurity demands, or the challenges of scaling.

Without a structured IT management plan, your business can face:

• Unpatched systems create openings for cyber threats.
• No clear data security framework is in place to protect customer and company information.
• Reactive troubleshooting instead of strategic projects that fuel growth.
• Gaps in coverage when your only IT contact is away.

It’s tempting to keep direct control in-house, but the reality is that a single point of failure can halt operations and cost far more than a proactive, well-supported model. 

The companies that thrive are those that invest in resilient IT services early, so technology drives progress instead of holding it back.

The real costs of doing IT in-house

Keeping IT internal might seem straightforward on a spreadsheet, but the line-item salary is just the beginning. The real costs include lost opportunities, increased risk, and the strain of trying to keep pace with a changing digital landscape.

1. Labor and overhead

Hiring a single in-house IT team member involves more than salary:

• Salary and benefits: Median annual wage is $96,800, plus benefits, payroll taxes, and retirement contributions.
• Ongoing training: With constant advancements in tools, cloud platforms, and Microsoft environments, training costs add up.
• Turnover risk: Replacing an IT hire means recruitment expenses, onboarding time, and knowledge loss.
• Coverage gaps: Without backup staff, you lose direct control when they’re out, leaving critical issues unresolved.

By contrast, a managed IT services partner provides an entire IT department for a predictable monthly investment and no single point of failure.

2. Opportunity cost

When your internal IT team spends all day fixing user issues, strategic goals take a back seat. This reactive model can:

• Delay IT system upgrades that improve efficiency.
• Stall the adoption of new technologies that support business growth.
• Divert attention from process automation and innovation projects.

Every stalled initiative has a ripple effect: missed revenue, slower delivery, and frustrated teams. Outsourcing part or all of your IT to a Managed Service Provider (MSP) frees internal resources to focus on what drives your competitive edge.

3. Security and compliance risk

Cybersecurity isn’t just a “big company” problem; it’s a high-stakes challenge for growing businesses. Without certified expertise in frameworks like HIPAA, PCI DSS, and SOC 2, you risk non-compliance fines, data breaches, and legal exposure. 

According to the Cybersecurity and Infrastructure Security Agency (CISA), most SMBs lack the bandwidth and tools for continuous monitoring, timely patching, and formal security audits.

Without expert oversight, an in-house IT generalist may struggle to:

• Keep pace with evolving data security best practices
• Defend against ransomware, phishing, and insider threats
• Maintain compliance with industry regulations and contractual requirements

Just one lapse, like a missed patch or failed audit, can cost more than a year of managed IT services and harm your reputation for years.

4. Downtime

Downtime is more than an inconvenience; it’s a costly blow to your bottom line. Industry studies put the average cost anywhere from $5,000 to $16,700 per minute, depending on business size and systems affected. Even for a small company with one server, downtime can easily top $100,000 an hour.

Picture this: your CRM crashes at 10:00 a.m. on the last day of the quarter. Sales reps lose access to customer data, accounting delays invoice processing, and support teams watch tickets pile up. Every minute lost means delayed deals, frustrated clients, and mounting revenue loss.

Without a documented disaster recovery plan, 24/7 monitoring, or built-in redundancy, you risk:

• Extended system failures that stall operations.
• Sales teams are unable to access customer data.
• Disruption of client services, eroding trust.

Partnering with an MSP proactively addresses these risks, keeping your systems and business running smoothly.

MSP vs. in-house IT: What growing businesses need

The “one-person IT shop” creates bottlenecks, raises risks, and distracts from your core business. The next step is understanding why a Managed Service Provider (MSP) can be a smarter investment for your long-term business goals.

A Managed IT Services partner isn’t just “outsourced IT support.” It’s like gaining a fully staffed IT department that works as an extension of your team, bringing strategic expertise, around-the-clock coverage, and scalable solutions, all for a predictable monthly fee. You get the benefits of enterprise-level IT without the overhead, staffing challenges, or guesswork.

With an MSP, you gain:

• Strategic planning: Technology roadmaps aligned to your business goals, helping you make every tech investment an informed decision.
• Redundancy: Multiple skilled technicians available for remote and on-site service, so there’s no single point of failure.
• Proactive protection: Continuous monitoring of networks, systems, and endpoints to identify and resolve issues before they cause downtime.
• Specialist access: From help desk support to advanced data security architecture, you get the right expert for the job.
• Predictable budgeting: Transparent pricing with no surprise bills for urgent fixes.
• Security roadmaps: Regular reviews to pinpoint vulnerabilities and keep your systems compliant.

Small businesses that implement structured security frameworks recover faster and face fewer compliance gaps, according to the National Institute of Standards and Technology (NIST). Partnering with an MSP helps you achieve that without overburdening your internal staff.

Cost Comparison: In-House IT vs. Managed IT Services

Category	In-House IT (1 IT Employee)	Managed IT Services (MSP)
Annual Salary	$96,800 median (Bureau of Labor Statistics)	Included in the monthly MSP fee
Benefits & Payroll Taxes	~$24,000 (25% of salary)	Included
Training & Certifications	$3,000–$8,000 annually	Included: MSP staff already certified
Coverage Gaps	PTO, sick days, turnover leave systems unattended	24/7 monitoring, full team coverage
Specialist Access	Additional hires or contractors needed for security, compliance, or cloud migrations	Specialists included in the MSP plan
Downtime Risk	Higher: single point of failure, limited after-hours support	Lower: proactive monitoring & disaster recovery plans
Scalability	Hiring takes months, adds headcount costs	Scales instantly — adjust service level
Annual Total Cost	$125,000–$150,000+	$60,000–$90,000 (varies by scope & company size)

An MSP gives you the capabilities of an entire IT department at 40–60% less than the cost of one full-time hire, with better coverage, faster scalability, and built-in expertise.

The ideal scenario? A partnership

Shifting to an MSP doesn’t have to mean giving up your direct control over IT operations, especially if you already have an in-house IT department. The most effective approach for many growing companies is a co-managed IT model.

In this setup, your internal team focuses on innovation, high-impact projects, and specialized initiatives unique to your industry, while the MSP manages the day-to-day operational load. This includes:

• 24/7 help desk support for employees.
• Regular patching and monitoring of endpoints.
• On-demand on-site assistance for complex issues.
• Proactive data security measures that safeguard customer and company information.

This hybrid partnership can:

• Increase scalability without hiring additional full-time staff.
• Improve response times when incidents occur.
• Keep IT aligned with your company’s business goals and growth targets.

The Cybersecurity and Infrastructure Security Agency (CISA) found that SMBs outsourcing specific IT functions to specialized providers not only reduces the cost of cyber incidents but also recovers faster from disruptions.

Why Parachute is the MSP that grows with you

Your business doesn’t stand still, and neither should your IT strategy. Parachute’s model equips companies to keep IT services in step with growth, whether they add 10 employees this quarter or expand into new markets next year.

Pod-based support pairs you with a consistent team of technicians who know your systems, core business, and specific needs. This continuity means faster resolutions, fewer disruptions, and technology decisions that make sense for your long-term business goals.

Here’s what makes Parachute different:

• Project resources: Skilled teams for everything from IT infrastructure upgrades to on-site deployments and endpoint security enhancements.
• Security planning: Scheduled reviews to identify vulnerabilities, strengthen data security, and ensure compliance with evolving standards.
• Cost-effective structure: A flat monthly fee that gives you transparent pricing and maximizes cost savings.
• Specialized expertise: Access to professionals experienced in help desk operations, disaster recovery, automation, and cloud migrations.

At Parachute, we plan, protect, and work with you so IT drives growth instead of slowing it down. Our approach keeps you in direct control of strategic decisions while ensuring your technology is secure, scalable, and ready for whatever’s next.

Let’s talk today about building the technology foundation your business needs to thrive.

FAQs

How does co-managed IT improve our cybersecurity without replacing our internal team?

Co-managed IT supplements your internal staff with specialized expertise, advanced tools, and 24/7 monitoring, enabling faster identification and mitigation of threats. Your internal team stays focused on strategic projects while the partner manages daily security operations.

What should our team focus on if a co-managed IT provider handles patch management?

Prioritize documenting business-critical systems, approving update schedules, and testing changes that impact operations. This ensures the provider applies patches quickly without disrupting key workflows.

How can co-managed IT help us respond to cyber incidents more effectively?

A strong co-managed setup gives you clear roles: the provider manages detection, containment, and recovery while your team communicates with stakeholders and manages compliance reporting. This division speeds recovery and minimizes business impact.