A Leeds accountancy firm called us last September. Their server had been down for three days. Client files inaccessible. Deadline approaching. Their IT manager - hired six months earlier for £38k - was "working on it."
By the time we restored their systems, they'd lost two clients and missed a statutory filing deadline. Total cost: £47,000 in lost revenue and penalties.
Their IT manager's salary suddenly didn't look like such a bargain.
This isn't an isolated incident. It's the hidden reality of DIY IT that most business owners don't calculate until disaster strikes.
The Numbers Everyone Sees
When businesses think about IT costs, they focus on the obvious expenses:
- IT staff salaries (£35k-£50k)
- Software licenses
- Hardware purchases
- Office space for IT equipment
A typical 30-person business might budget £60k annually for these visible IT costs. Seems reasonable, right?
But that's only about 30% of what IT actually costs when you do it in-house.
The Numbers Everyone Misses
Here's what actually happened to that accountancy firm over 18 months:
Compare that to managed IT services: £48,000 for the same period, with guaranteed uptime, 24/7 monitoring, and professional security management.
The "expensive" option would have saved them £146,000.
The Downtime Reality
Here's what most business owners don't realise: downtime costs compound exponentially.
Hour 1: Minor inconvenience. Staff can work on other tasks.
Hour 4: Projects delayed. Clients start asking questions.
Hour 12: Revenue loss begins. Client confidence shakes.
Day 2: Panic mode. Reputation damage starts.
Day 3: Client exodus begins. Recovery becomes expensive.
The Ponemon Institute found that average downtime costs UK businesses £4,700 per minute. For a growing professional services firm, three days down can cost more than annual IT salaries.
The Expertise Gap
That £38k IT manager? He knew Windows servers and basic networking. But when their email security failed and ransomware encrypted their client files, he was out of his depth.
Modern businesses need specialists in:
- Cloud architecture - Azure, AWS, hybrid environments
- Cybersecurity - Threat detection, incident response, compliance
- Business continuity - Backup strategies, disaster recovery, failover systems
- Industry compliance - GDPR, sector-specific requirements
- Strategic planning - Technology roadmaps, vendor management
Finding one person with all these skills who'll work for £50k is impossible. Hiring specialists for each area? That's £200k+ in salaries alone.
Real Example: Manufacturing Firm in Birmingham
45 employees, hired IT manager for £42k. Six months later:
- Production line down 8 hours due to network failure: £28k lost
- Payroll system crashed on month-end: 2 days manual processing
- No proper backup strategy: Lost 3 months of design files
- GDPR compliance gaps discovered in audit: £8k consultant fees
Total additional costs: £45k in year one. They switched to managed IT and saved £30k annually while eliminating these risks.
The Opportunity Cost
This is the big one that never appears on spreadsheets: what growth opportunities did you miss while dealing with IT problems?
That recruitment firm owner spent 15 hours weekly managing IT issues instead of winning new business. At their conversion rate, that's £180k in missed revenue annually.
Their finance director couldn't produce monthly reports for three weeks due to system issues. Decision-making stalled. A competitor won a major contract they were pursuing.
These missed opportunities often cost more than downtime itself.
The Real Comparison
• IT staff: £45k
• Downtime costs: £35k average
• Security incidents: £20k average
• Emergency support: £10k
• Missed opportunities: £10k+
• Plus: Management overhead, holiday cover, training costs
• Complete IT support included
• 99.9% uptime guarantee
• 24/7 monitoring & response
• Security & compliance included
• Strategic planning included
• Result: Predictable costs, better outcomes
Why Smart Businesses Make the Switch
The companies that grow fastest aren't the ones with the cheapest IT. They're the ones with the most reliable IT.
When your systems work seamlessly, your team focuses on what they do best. When they're constantly fighting technology, productivity plummets and frustration builds.
Consider this: would you rather spend £36k annually on reliable, professional IT support, or risk £100k+ in downtime, security breaches, and missed opportunities?
The Transition Reality
Most businesses resist outsourcing because they're afraid of losing control. But here's what actually happens:
You gain control. Instead of hoping your IT person can handle the next crisis, you have guaranteed response times, monitored systems, and professional incident management.
You gain transparency. Professional MSPs provide detailed reporting on system health, security status, and performance metrics. Most in-house IT managers can't provide this level of insight.
You gain scalability. When you grow, your IT support scales with you. No recruitment headaches, no training delays, no wondering if your single IT person can handle increased demand.
Making the Decision
Here's the calculation every business owner should make:
If your business revenue stops when your IT stops, DIY IT is the most expensive option.
If your team's productivity depends on reliable systems, if you handle sensitive data, if compliance matters to your industry - professional IT support isn't a cost, it's insurance against bankruptcy.
Calculate Your True IT Costs
Use this framework to understand the complete cost of your current IT approach:
- Document all direct costs (salaries, software, hardware)
- Calculate indirect costs (training, recruitment, management time)
- Assess risk costs (downtime, security incidents, compliance gaps)
- Factor in opportunity costs (what else could you focus on?)
- Compare total cost against alternative approaches