It depends on size and complexity. Businesses under 50 employees often go fully MSP-managed without internal IT. Above 50-100 employees, hybrid models (internal IT + co-managed MSP support) usually win.
The answer changes as you grow. Here's the rough breakdown:
Almost always fully MSP-managed. A dedicated internal IT person is hard to justify at this size — their day-to-day work isn't enough to keep one person engaged, and you need broader expertise than one generalist can provide.
Either fully MSP-managed or a single internal IT person paired with MSP support. The internal hire usually handles user-facing support and basic admin while the MSP handles servers, security, backup, and strategic work.
Hybrid model becomes standard. Internal IT team of 2-4 people for daily support; MSP provides senior expertise, 24/7 coverage, security operations, and project execution. This is co-managed IT — you keep control, the MSP fills the gaps.
Internal IT department with specialized roles. MSP relationship narrows to specific functions: cybersecurity (MSSP), compliance, vCIO/strategic advisory, M&A integration support, or specific platform expertise (Microsoft 365, Azure, AWS).
A single internal IT person can't cover 24/7, can't be expert at everything (network, security, cloud, compliance, hardware), can't take vacation without coverage gaps, and is one resignation away from a crisis. An MSP layered on top solves all of that without doubling your IT salary line.
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