Having an internal IT department can be quite expensive, and we know the budget doesn’t always stretch far—especially if your business is in a growth stage. Are you familiar with the outsourced IT costs?
This comprehensive guide explores real pricing data from leading providers like RCOR, showing you exactly what to expect. You’ll discover typical cost ranges for different business sizes, learn how to spot hidden fees, and get practical steps for comparing providers.
Whether you’re considering outsourced IT for the first time or wondering if you’re paying too much, you’ll find clear answers to help optimize your technology spending.
- Comprehensive IT support typically costs $100-200 per user monthly for businesses.
- Hidden costs include onboarding fees, special projects, and emergency support charges.
- Budget approximately $1,000 monthly per 8-10 users for managed IT services.
- Fixed-fee plans offer predictable costs versus potentially volatile pay-as-you-go pricing.
What Really Drives the Price of Outsourced IT?
Outsourced IT costs can seem confusing, but understanding what drives the price helps your business make smart decisions. The main factors are the number of users, the complexity of your technology environment, and the level of support and services you need.
Let’s look at a real case. A company with just 20 employees and relatively basic needs will pay much less than a healthcare business with strict compliance requirements and advanced security. See what we mean?
Industry, compliance, and the expertise required also affect the final cost. If your business needs 24/7 support, cloud services, or advanced cybersecurity, expect higher costs. Providers like Aldridge help you understand these variables so you can plan your IT budget with confidence.
Typical Outsourced IT Cost Ranges by Engagement Type
Your costs will depend on the kind of relationship you have with your IT provider. For example, fully managed services, where the provider handles everything, are the most common for small and mid-sized businesses.
Let’s see 5 of them:
Managed Services (All-Inclusive & Co-Managed)
Full IT coverage at a fixed price—perfect if you’re looking for a predictable, controlled model. There’s also the Co-Managed option, which involves your own team as well. That might require more internal resources, but it’ll bring costs down (which is exactly what you need right now).
On-Demand / Break-Fix Support
This model is less predictable since it works based on what comes up. It’s perfect if your business is small and your IT needs are minimal.
Cloud Services & SaaS Management
MSPs can manage your Microsoft 365, Google Workspace, and other SaaS tools, including user provisioning, security, and license optimization. This is useful for reducing software waste and streamlining cloud performance.
Project-Based or One-Off Work
IT projects like migrations, infrastructure upgrades, or office setups are billed separately. These are not included in monthly MSP contracts and should be budgeted for annually, especially when planning system changes or growth initiatives.
Staff Augmentation / vCIO & Engineers
MSPs offer temporary or part-time access to senior IT staff like virtual CIOs or engineers. This strategic service supports planning, compliance, or large rollouts.
Hidden and Variable IT Costs Owners Overlook
Everyone always goes straight for the monthly fees (as if there were no other options). Have you looked at the hidden costs those invoices might be hiding? Onboarding fees are common and often equal one month’s service cost for setup and system stabilization.
Special projects outside your regular agreement, like a server upgrade or cybersecurity audit, are billed separately – usually $100-200 per hour (E-N Computers, 2025).
For example, services like hardware replacement, software licenses, or cloud subscriptions aren’t always included in your base contract and—BOOM—surprise! New items show up on your invoice at the end of the month.
Emergency support, after-hours help, and rapid response can also add to your expenses. If your business grows or adds users, your costs will increase. Understanding these variables helps you avoid surprises and budget more accurately for your IT needs.
How to Budget Outsourced IT Cost in 4 Steps
Let’s start with the basics:
Make a list of your users (the people who work at your company or will have access to or contact with IT), devices, and the services you need.
Research which providers could meet your expectations (you know—budget vs. quality of service).
Make sure to include extra costs, like onboarding, projects, hardware, etc.
Review your budget at least quarterly to adjust it according to your growth and/or new technology needs.
Are You Paying Too Much for Outsourced IT? Five Red Flags
Nothing’s perfect—but when it’s this flawed from the start, you’re better off walking away. Let’s look at 5 examples of this:
When the contract only covers basic monitoring (Your needs aren’t being met, and you might even be left exposed to cyber threats)
Extra charges for routine support (We honestly don’t even know how they justify this)
Slow response times (The first thing your IT provider should guarantee is a quick response)
Lack of transparency in pricing and invoices
No noticeable improvements in productivity, security, or compliance
Fixed-Fee vs Pay-As-You-Go: Long-Term IT Cost Comparison
Choosing between fixed-fee and pay-as-you-go models affects your long-term IT costs. Fixed-fee plans offer predictable monthly expenses, covering all agreed services for a set price.
Standard service tiers range from $99-250 per user per month. This model is best for businesses that want budget stability and comprehensive support.
Pay-as-you-go, or hourly billing, may seem cheaper at first but can lead to higher costs if you need frequent support or face unexpected issues. Per-device pricing is another option, averaging $50-125 per workstation and $100-400 per server monthly.
The right choice depends on your business’s risk tolerance, support needs, and desire for cost predictability.
Get a No-Obligation Outsourced IT Cost Comparison for Your Business
Ready to see how your current IT costs compare to the market? A no-obligation cost comparison gives your business clarity and helps you make informed decisions.
You’ll get a detailed breakdown of services, support, and pricing models tailored to your needs.
This process highlights hidden costs, shows where you can save money, and ensures you’re getting the best value for your investment.
Whether you’re considering switching providers or just want peace of mind, a cost comparison is a smart move. Reach out to Aldridge today to get started and put your business in control of its IT strategy.
Understanding IT costs doesn’t have to be complicated. From per-user pricing and service levels to hidden fees and long-term value, you now have the knowledge to make informed decisions about outsourced IT that align with your business goals and budget.
The key is finding the right balance of services and support that delivers the technology foundation your company needs to grow.
Ready to take control of your IT spending? RCOR specializes in creating transparent, customized IT solutions that maximize your technology investment while eliminating surprise costs.
Contact our team today for a free cost comparison and discover how we can help your business achieve more predictable IT expenses while getting the expert support you deserve.