As your financial services firm grows, technology becomes more complex. Cybersecurity threats increase, compliance expectations evolve, and employees depend on reliable systems to serve clients efficiently.
At some point, many business owners ask the same question:
Should we hire an internal IT employee, or should we partner with a Managed Service Provider (MSP)?
The answer depends on your firm's size, budget, growth plans, and technology needs. For many financial advisors, CPA firms, accounting practices, and wealth management companies with 10 to 25 employees, partnering with an MSP provides access to a broader range of expertise at a predictable monthly cost.
In this guide, we'll compare internal IT and managed IT services so you can make an informed decision for your business.
Understanding the Two Models
An internal IT employee is a member of your staff responsible for managing your technology environment. Depending on experience and workload, they may handle user support, hardware, software, cybersecurity, vendor coordination, and technology planning.
A Managed Service Provider is an external technology partner that delivers ongoing IT support, cybersecurity, monitoring, strategic planning, and help desk services through a team of specialists for a predictable monthly fee.
Both approaches have advantages, but they solve different business challenges.
Cost Comparison
For many small and midsize financial firms, cost is one of the biggest deciding factors.
Internal IT
When hiring an internal IT professional, consider:
- Salary
- Payroll taxes
- Employee benefits
- Paid time off
- Continuing education
- Certification costs
- Recruiting expenses
- Hardware and software tools
The total annual investment often exceeds the employee's base salary.
Managed IT
Managed IT typically provides:
- Flat monthly pricing
- Unlimited support
- Cybersecurity management
- Microsoft 365 administration
- Backup and disaster recovery
- Vendor management
- Strategic vCIO services
- 24/7 monitoring
Instead of paying for one person's expertise, you gain access to an entire team of engineers with different specialties.
Expertise
Technology has become too broad for one person to master every discipline.
Modern IT requires knowledge of:
- Cybersecurity
- Microsoft 365
- Networking
- Cloud platforms
- Backup and disaster recovery
- Compliance-focused security controls
- Identity management
- Vendor management
A Managed Service Provider typically assigns specialists to these areas rather than relying on one generalist.
Availability
An internal IT employee works a standard schedule and may be unavailable during vacations, sick days, or after-hours emergencies.
Managed IT providers often offer:
- 24/7/365 Help Desk
- Continuous monitoring
- Multiple engineers
- Escalation paths
- Redundancy within the support team
At Torch Networks, every support request is acknowledged and addressed within 15 minutes, helping minimize downtime for your team.
Cybersecurity
Cybersecurity is one of the biggest differences between internal IT and a modern MSP.
Many managed IT providers include:
- Endpoint Detection & Response (EDR)
- Multi-Factor Authentication
- Email security
- Vulnerability management
- Security awareness training
- Microsoft 365 security
- Backup and disaster recovery
- Continuous monitoring
Building this level of capability internally often requires multiple employees and additional software investments.
Strategic Planning
Technology should support your business goals.
Through dedicated vCIO services, an MSP can help:
- Build annual IT budgets
- Plan hardware refresh cycles
- Evaluate new technology
- Improve cybersecurity maturity
- Align IT investments with business growth
Many organizations do not need a full-time CIO, but they benefit from experienced strategic guidance.
Vendor Management
Financial firms often rely on multiple technology vendors, including Microsoft, internet providers, accounting software companies, and cloud platforms.
Instead of your staff coordinating between vendors, an MSP can manage these relationships and help resolve technical issues more efficiently.
Torch Networks regularly works alongside vendors supporting platforms such as QuickBooks Enterprise, Lacerte, UltraTax, Drake Tax Software, Laserfiche, ShareFile, and Microsoft 365.
When Does Internal IT Make Sense?
Hiring an internal IT employee may be appropriate if your organization:
- Has more than 75 to 100 employees
- Operates highly specialized internal applications
- Requires dedicated on-site technical staff every day
- Maintains a large technology department
Even then, many organizations choose a co-managed IT model where internal staff work alongside an MSP.
When Does Managed IT Make Sense?
Managed IT is often the better choice for firms that:
- Have 10 to 25 employees
- Need predictable IT costs
- Want stronger cybersecurity
- Require Microsoft 365 expertise
- Need strategic IT planning
- Want 24/7 support
- Prefer access to a full team of specialists
For many growing financial firms, managed IT delivers enterprise-level capabilities without the expense of building an internal IT department.
Real Client Example
Technology challenges are rarely limited to one system or one vendor.
One of our accounting clients recently needed assistance resolving a complex technology issue involving one of their own customers. Our engineering team collaborated with the appropriate vendors, identified the root cause, and restored normal operations quickly.
"Torch Networks has been an outstanding technology partner for my firm. Their team is knowledgeable, responsive, and consistently delivers excellent service..."
Marsha Wayne
Fisher Accounting Services
Frequently Asked Questions
Is managed IT less expensive than hiring internal IT?
For many firms with 10 to 25 employees, managed IT provides broader expertise at a lower overall cost than hiring a full-time IT professional.
Can managed IT replace an internal IT employee?
Yes, for many small and midsize firms. Larger organizations often benefit from a co-managed approach where internal IT and an MSP work together.
What is co-managed IT?
Co-managed IT is a partnership where your internal IT staff handles day-to-day responsibilities while an MSP provides additional expertise, cybersecurity, monitoring, and strategic support.
Does managed IT include cybersecurity?
Most comprehensive managed IT agreements include layered cybersecurity services such as EDR, MFA, email security, vulnerability management, and backup solutions.
How quickly does Torch Networks respond to support requests?
Torch Networks acknowledges and addresses every support request within 15 minutes, helping keep your employees productive and minimizing downtime.
Which IT Model Is Right for Your Firm?
Choosing between internal IT and managed IT is not just about cost. It's about finding the right level of expertise, security, and support for your business.
If your financial services firm has 10 to 25 employees and wants predictable IT costs, stronger cybersecurity, Microsoft 365 expertise, and strategic technology planning, managed IT may provide the greatest value.
Torch Networks offers complimentary IT assessments to help financial firms evaluate their current technology environment and determine the support model that best fits their goals.
