Hiring one internal IT person looks simple on paper, but the true cost is rarely a single salary. A mid-level IT generalist in the GTA runs roughly $70,000–$95,000 in base pay. Loaded with CPP, EI, benefits, vacation and training, the fully-burdened cost is closer to $95,000–$125,000 a year. That buys you one person, working business hours, who takes vacation, gets sick, and can only be an expert in a few things.
A managed IT agreement is priced per user or per device, typically $100–$250 per user per month in the GTA depending on scope. For a 25-person business that's roughly $30,000–$75,000 a year—and it includes the team, the tooling, 24/7 coverage, security operations and documented processes, not just one person's time.
The honest comparison isn't cheaper versus more expensive. It's what you get for the money: one generalist working nine to five, versus a bench of specialists, enterprise-grade tools and round-the-clock coverage for a similar or lower total cost.
Above roughly 100–150 staff, an internal IT lead earns their keep—owning strategy, vendor relationships and the roadmap. The strongest setup at that size is usually co-managed: your internal lead plus a managed partner covering tier-1/tier-2, after-hours and security. Below that, a fully managed agreement almost always delivers more capability per dollar.
For most small and mid-sized businesses under 100 people, outsourced managed IT beats a single in-house hire on both cost and capability. Above that, co-managed blends the best of both. If you want a like-for-like comparison against your current spend, we'll put it in writing—see our managed IT services or managed IT in Toronto.
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