The short answer
For a 50-user Houston firm, managed IT services cost $96,000 to $108,000 a year at $160 to $180 per user per month. One in-house network administrator costs about $145,700 a year loaded, before the security, backup and monitoring tools that person still has to buy, and covers one shift, five days a week. Up to about 75 users, managed IT costs less than one hire and covers more. From 75 to 150 users the dollars get close, but one person still cannot cover 24/7. Above 150 users, an in-house person plus a managed provider behind them starts to make sense.
This post runs the numbers side by side for a 50-user construction or engineering firm, using Bureau of Labor Statistics wage data for Houston, then shows where the break-even moves as you grow. For what the managed fee covers, see what is included at $160 to $180 per user.
What does an in-house IT person cost in Houston?
Start with salary. The Bureau of Labor Statistics puts the mean annual wage for a network and computer systems administrator in the Houston metro at $102,000 (May 2023). That is the person who can run servers, a firewall, Microsoft 365 and backup on their own. A help desk technician is cheaper, with a national mean of $63,640, but cannot run the whole function alone.
Salary is not the cost. BLS’s employer cost survey shows benefits make up 30% of total compensation in private industry, which means wages are 70% of what you actually pay. Divide $102,000 by 0.70 and the loaded cost is about $145,700 a year for one administrator.
Then add what the person does not bring with them:
- Tools. Endpoint protection, email security, backup, monitoring and a ticketing system still have to be licensed. Bought one company at a time instead of across hundreds of clients, in our experience these run $25 to $50 per user per month, or $15,000 to $30,000 a year for 50 users.
- Coverage. One person works about 2,080 hours a year. A year has 8,760. Nights, weekends, vacation, sick days and training are uncovered, and a superintendent locked out at 6 AM on a pour day does not wait for 8 AM.
- Depth. Nobody is expert in networking, security, Microsoft 365, backup and a dozen construction applications at once. The gaps get patched over or ignored.
- Turnover. When the one person leaves, every password, vendor relationship and undocumented fix leaves with them. Replacing a Houston administrator takes months, and the recruiting cost is on you.
Managed IT services vs. in-house IT: the numbers for a 50-user Houston firm
| Line item | Managed IT services (Preactive) | One in-house administrator |
|---|---|---|
| Annual cost of people | $96,000 to $108,000, all in | About $145,700 loaded |
| Security, backup and monitoring tools | Included | $15,000 to $30,000 a year, bought separately |
| Help desk coverage | 24/7, staffed by local employees | One shift, five days, minus vacation and sick time |
| Technicians available | A team, one per 150 users across all clients | One |
| On-site visits | Included, dispatched within 4 hours | Same day if the one person is free |
| Response time | 9 minute average, Q3 2026 | Depends on the queue that day |
| Account management and IT standards | Included | Only if the one person has time left over |
| When the person quits | Nothing changes | Months of exposure while you hire |
| Total, year one | $96,000 to $108,000 | $161,000 to $176,000 |
The in-house column is not a knock on the person. A good administrator is worth every dollar, and the administrator also does project and hardware work that a managed fee quotes separately, so the gap is a little smaller than the table alone shows. The problem is the math of asking one human to be a 24/7 department. At 50 users, you pay about 65% more for less coverage.
Where does the break-even point move as you grow?
Managed IT scales by the user. In-house IT scales by the hire. That changes the answer at different sizes.
- Under about 75 users: managed IT wins on cost and coverage. One loaded administrator costs more than the whole managed fee and leaves nights, weekends and vacations open.
- 75 to 100 users: the dollars are close. One administrator plus tools runs about $161,000 to $206,000. Managed runs $144,000 to $216,000. The difference is coverage, not price.
- 100 to 150 users: managed IT runs $192,000 to $324,000 a year. One administrator still cannot cover it alone, so the real in-house comparison is two administrators at roughly $291,000 loaded plus tools. Managed still wins, but the gap narrows.
- 150 to 250 users: this is where a co-managed model earns its keep. An in-house person handles the daily walk-ups and project coordination, and a managed provider covers the help desk, security, backup, after-hours and the standards. You get the depth of a team without building one.
Most of the construction and engineering firms we support sit between 40 and 250 users, so we see every version of this. The firms that struggle are the ones that hired one person at 60 users, outgrew them at 120 and never noticed.
What does the in-house option cost that never shows on a budget?
Three things.
- The owner becomes the backup IT department. When the administrator is out, the question goes to whoever is most comfortable with a computer. That is usually a principal or a project manager, and their hour is worth more than the technician’s.
- Security drifts. One person patching, monitoring alerts, managing backups and answering the phone will drop the quiet work first. We wrote about the hidden problems behind poor IT support, and an overloaded solo administrator produces the same list as an overloaded low-bid provider.
- Nobody sets standards. Purchases follow whatever the vendor pitched last. Managed providers that run a healthy technician-to-user ratio have the time to write standards and hold to them.
How do you choose between managed IT services and in-house IT in Houston?
Ask four questions and answer them with numbers.
- How many computer users do you have today, and in three years?
- What does after-hours downtime cost you per hour, including the field?
- Who covers IT when your one person is out, and what did that cost last year?
- What would it cost to buy the security and backup tools yourself?
If you are under about 75 users, the managed fee is lower than the first hire. If you are over 150, ask about co-managed before you post the job. Either way, compare providers on the four questions that settle it before you compare price.
Frequently asked questions
Is it cheaper to outsource IT or hire in-house?
For most firms under about 75 users, outsourcing to a managed IT provider is cheaper, and up to 150 users it is close on price with far more coverage. A 50-user Houston firm pays $96,000 to $108,000 a year for managed IT services with tools and 24/7 coverage included. One in-house administrator costs about $145,700 loaded, plus $15,000 to $30,000 in tools, for one shift of coverage.
How much does an in-house IT person cost in Houston?
The Bureau of Labor Statistics puts the mean wage for a network and computer systems administrator in Houston at $102,000. With benefits at 30% of total compensation per BLS, the loaded cost is about $145,700 a year, before software tools, recruiting and the cost of covering vacations and after-hours.
At what size should a company hire in-house IT?
Usually around 150 to 200 computer users, and even then as part of a co-managed setup. One in-house person handles daily walk-ups and projects while a managed provider covers the help desk, security, backup and after-hours. Below about 75 users, a single hire costs more than managed IT and covers less.
What is co-managed IT?
Co-managed IT is a split: your in-house IT staff keep the work they are good at and a managed services provider covers the rest, typically the 24/7 help desk, security tools, backup, monitoring and IT standards. In our experience it fits Houston firms between 150 and 250 users that have one or two internal IT people.
Does managed IT replace an existing IT employee?
Not necessarily. Many firms keep their IT person and add a managed provider behind them. The employee gets a team to escalate to, after-hours coverage and the security tools they could not buy alone, and the firm stops depending on one person for everything.
What does Preactive IT Solutions charge for managed IT in Houston?
Most clients pay $160 to $180 per user per month depending on complexity. That covers the 24/7 help desk, on-site support, security stack, backup, monitoring, Microsoft 365 administration and account management. Hardware, software licenses and large projects are quoted separately.
About Preactive IT Solutions
Preactive IT Solutions is a Houston managed IT services provider specializing in construction and engineering firms, serving Texas businesses since 2003. We support organizations of 40 to 250 users with a 24/7 help desk staffed by our own technicians in our Houston-area office, one technician per 150 users and an average client relationship of more than eight years. See the full managed IT services in Houston offering, or ask us for a quote.
Sources
- Bureau of Labor Statistics, Occupational Employment and Wages, Network and Computer Systems Administrators, May 2023: Houston-The Woodlands-Sugar Land mean annual wage $102,000.
- Bureau of Labor Statistics, Computer User Support Specialists, May 2023: national mean annual wage $63,640.
- Bureau of Labor Statistics, Employer Costs for Employee Compensation, June 2026: benefits 30.0% of total compensation, private industry.
- Tool cost range of $25 to $50 per user per month is Preactive IT Solutions’ estimate for a 50-user firm licensing endpoint protection, email security, backup, monitoring and ticketing directly.
