Calculating ROI of Managed IT Services: Is In-House IT Costing You More?

THE "SALARY ICEBERG" EFFECT

You are looking at your P&L statement, and the "IT Salaries" line item looks reasonable. You have a solid IT Manager in Des Moines, Iowa making a competitive salary, and they keep the lights on. But like an iceberg, the most dangerous costs of an in-house model are the ones sitting silently below the waterline.

In 2026, the true cost of an internal employee isn't just their base pay. It’s the "fully loaded" cost—benefits, payroll taxes, office space, and the ongoing price of training to keep up with AI-driven security threats. When you add in the cost of unused capacity and the risk of a single point of failure, that "reasonable" salary line often masks a massive drain on your working capital.

The Hard Math: In-House vs. Managed IT

To find your real ROI, you have to move beyond the base salary. Let’s look at the financial reality of a typical 50-person firm in the Des Moines metro area.

The In-House Model

• Base Salary (IT Specialist/Engineer): ~$91,000 – $119,000
• Benefits & Taxes (30% load): $27,000+
• Training & Certifications: $5,000 (Non-negotiable in 2026’s threat landscape)
• Management Overhead: $10,000 (The time leadership spends managing a technical resource outside their expertise)
• Software Tools (RMM, SOC, Backups): $15,000+ (Small shops pay retail prices for these tools)
• Total Annual Cost: ~$148,000 - $175,000+

The Managed IT Model

A managed services IT provider doesn’t just provide a person; they provide a process and a stack of enterprise-grade tools. By leveraging the scale of a partner, you gain access to a $250,000/year toolset and a $1,000,000/year talent pool for a fraction of the cost.

• Predictable Monthly Fee: Typically 30% to 50% less than a "fully loaded" internal hire.
• No Recruiting Costs: In 2026, the cost-per-hire for specialized IT roles can exceed $20,000 in agency fees and lost productivity.
• Zero Technical Debt: We handle the hardware and software lifecycle so you aren’t hit with a surprise $40,000 server refresh every five years.

The Hidden Multipliers of ROI

ROI isn't just about spending less; it's about making more. Business managed IT services drive revenue through three specific multipliers:

1. Eliminating "Empty Hours": With an in-house person, you pay for 40 hours a week regardless of whether there are 40 hours of work. With managed IT services, you pay for the result—uptime—not the clock.
2. Productivity Gains: When your network is stable and proactive, your employees aren't sitting around waiting for a "fix-it" guy to arrive. If a 50-person team in Des Moines gains just 10 minutes of productivity a day through better system performance, that's over 2,000 hours of recovered labor per year.
3. Risk Mitigation: The average cost of a 2026 ransomware event for a mid-sized business now exceeds $250,000 in recovery and lost reputation. A managed IT partner acts as an insurance policy that pays out every single day by keeping the "villain" outside your gates.

The Plan: A Shoulder-to-Shoulder Audit

We believe in "No Surprises." If your current IT setup is costing you more than it produces, we will tell you, even if it means Koltiv isn't the right fit.

1. 1. Calculate Your Burdened Cost: Don't just look at the paycheck. Add in taxes, benefits, and the software licenses your internal personnel use.
   2. Measure Your Downtime: Track every hour your team was "waiting on tech" over the last quarter. Multiply that by your average hourly labor rate.
   3. Use the Data: Before making a gut-level decision, get a clear estimate. Use our Managed IT Pricing Calculator to see how our predictable pricing compares to the actual cost of your current internal setup.

Success or Wasted Motion

Continuing to fund an inefficient in-house model is "wasted motion." It keeps your business stagnant and ties up your capital in a structure that doesn't scale.

However, when you right-size your support, you free up the capital and mental energy needed to win. You move from "managing a person" to "managing a vision."

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