A comprehensive guide to understanding the true costs of IT staffing decisions for Central Illinois organizations
Executive Summary
Bottom Line: For most Peoria businesses with 25-150 employees, outsourcing IT to a managed service provider costs 40-60% less than maintaining an in-house IT team while providing superior security, expertise, and 24/7 support. Co-managed services offer an excellent hybrid option for organizations with existing IT staff who need specialized support in cybersecurity and compliance.
Key Findings:
- In-house IT: $120,000-$450,000+ annually (including benefits, training, and equipment)
- Managed IT Services: $30,000-$360,000 annually (typically $150-$200 per user/month)
- Co-managed Services: $15,000-$180,000 annually (ideal for existing IT teams needing specialized support)
- Break-even point: Organizations with 100+ employees may benefit from hybrid co-managed models
Understanding the True Cost of In-House IT
Direct Salary Costs in Central Illinois
Based on 2025 market data for the Peoria area and Illinois:
IT Support Technician:
- Entry-level: $40,000-$48,000 annually
- Experienced: $48,000-$58,000 annually
- Average hourly: $22.08 per hour in Peoria area
IT Specialist/Systems Administrator:
- Average salary: $54,874 annually for IT specialists in Illinois
- Mid-level: $55,000-$70,000 annually
- Senior level: $70,000-$85,000 annually
IT Manager:
- Average salary: $141,785 annually for IT managers in Peoria
- Range: $115,700-$167,278 annually
- Senior leadership: $150,000-$180,000 annually
Cybersecurity Specialist:
- Entry-level: $70,000-$85,000 annually
- Experienced: $85,000-$110,000 annually
- Senior specialist: $110,000-$140,000 annually
Compliance Specialist:
- Healthcare/HIPAA: $65,000-$90,000 annually
- Multi-standard (PCI, CMMC): $75,000-$110,000 annually
- Senior compliance: $95,000-$125,000 annually
Hidden Costs of In-House IT Staff
Benefits and Payroll Taxes (29.7-31.2% of salary for private industry):
- Health insurance: $7,034 annually for single coverage (employer portion), with total costs expected to surpass $16,000 per employee in 2025
- FICA (Social Security and Medicare): 7.65% of salary up to $176,100 for Social Security (6.2%) plus 1.45% Medicare on all wages
- Unemployment insurance: 0.1-0.4% of salary (FUTA) plus state rates varying by experience
- Workers’ compensation: Approximately 1% of total compensation package
- Paid time off: 15-25 days annually (equivalent to 6-10% of salary)
- Professional development: $3,000-$8,000 per employee annually
Equipment and Infrastructure:
- Workstation setup: $2,500-$4,500 per IT employee
- Specialized software licenses: $2,000-$15,000 annually per employee
- Security tools and monitoring: $5,000-$20,000 annually per team
- Training and certifications: $3,000-$8,000 per employee annually
- Conference attendance: $2,500-$6,000 annually per employee
Management Overhead:
- HR administration costs: $1,800-$3,500 per employee
- Performance management: 8-12% of manager’s time
- Recruitment and onboarding: $8,000-$20,000 per position
- Knowledge management and documentation: 5-10% of team time
Skills Gap Challenges
Cybersecurity Expertise Gap:
- High demand for qualified professionals
- Salary premium: 20-40% above general IT roles
- Continuous training required due to evolving threats
- Difficulty finding experienced candidates in Central Illinois market
Compliance Knowledge Requirements:
- Healthcare (HIPAA): Specialized training and ongoing education
- Payment processing (PCI DSS): Complex technical and procedural requirements
- Government contracting (CMMC): Emerging standards with limited expertise
- Multi-standard environments: Rare skill set commanding premium salaries
Total In-House IT Cost Examples
Small Business (25 employees) – Basic IT Support:
- 1 IT Technician: $52,000 salary + $15,800 benefits (30.4% of salary) = $67,800
- Equipment and training: $6,000 annually
- Management overhead: $3,500
- Total: $77,300 annually
- Limitations: No cybersecurity expertise, no 24/7 coverage, limited compliance knowledge
Medium Business (50 employees) – Comprehensive IT:
- 1 IT Manager: $142,000 + $43,200 benefits (30.4% of salary) = $185,200
- 1 IT Technician: $55,000 + $16,700 benefits = $71,700
- Equipment and training: $14,000 annually
- Management overhead: $9,000
- Total: $279,900 annually
- Gap: Still lacks dedicated cybersecurity and compliance expertise
Large Business (150 employees) – Full IT Department:
- 1 IT Manager: $155,000 + $47,100 benefits = $202,100
- 2 IT Technicians: $115,000 + $35,000 benefits = $150,000
- 1 Systems Administrator: $75,000 + $22,800 benefits = $97,800
- 1 Cybersecurity Specialist: $95,000 + $28,900 benefits = $123,900
- Equipment and training: $25,000 annually
- Management overhead: $20,000
- Total: $618,800 annually
Managed IT Services Cost Analysis
2025 Managed Services Pricing
Note: The following are general industry pricing ranges. Actual costs vary significantly based on specific business needs, infrastructure complexity, and service requirements. Many providers, including Facet Technologies, create customized solutions that may fall outside these general ranges. These prices reflect managed services only and do not include services like cloud servers, hardware or hosting.
Per-User Pricing Model (Most Common):
- Basic monitoring and support: $99-$150 per user/month
- Comprehensive managed services: $150-$200 per user/month
- Advanced security and compliance: $250-$400 per user/month
What’s Included in Managed Services
Basic Package ($99-$150/user/month):
- 24/7 network monitoring and alerting
- Remote help desk support during business hours
- Basic security (antivirus, firewall management)
- Email support and spam filtering
- Software updates and patch management
- Basic data backup
- Planning and quarterly reviews
Comprehensive Package ($150-$200/user/month):
- All basic services plus:
- Proactive maintenance and optimization
- Advanced cybersecurity (EDR, multi-factor authentication)
- Enhanced data backup and recovery
- Cloud services management
- Strategic IT planning and quarterly reviews
- Basic compliance support
Advanced Package ($200-$300/user/month):
- All comprehensive services plus:
- 24/7 Security Operations Center (SOC) monitoring
- Advanced compliance management (HIPAA, PCI, CMMC)
- Advanced threat detection and response
- Dedicated account management
- Priority on-site support
- Advanced cybersecurity training
Managed IT Cost Examples
These are general industry ranges for reference. Actual pricing varies based on specific business requirements, existing infrastructure, and customized service packages.
Small Business (25 employees):
- Basic package: $2,475-$3,750/month = $29,700-$45,000/year
- Comprehensive package: $3,750-$5,000/month = $45,000-$60,000/year
Medium Business (50 employees):
- Basic package: $4,950-$7,500/month = $59,400-$90,000/year
- Comprehensive package: $7,500-$10,000/month = $90,000-$120,000/year
Large Business (150 employees):
- Basic package: $14,850-$22,500/month = $178,200-$270,000/year
- Comprehensive package: $22,500-$30,000/month = $270,000-$360,000/year
Note: Many providers, including Facet Technologies, offer customized solutions that may not fit standard per-user pricing models. Factors such as existing infrastructure, specific compliance requirements, and unique business needs all influence final pricing.
Co-Managed IT: The Strategic Hybrid Solution
What is Co-Managed IT?
Co-managed IT services represent a partnership model where your existing in-house IT staff works alongside an external managed service provider. This hybrid approach allows you to maintain internal control while gaining access to specialized expertise, advanced security capabilities, and 24/7 monitoring.
When Co-Managed Services Are Ideal
Perfect Scenarios:
- Organizations with 1-3 existing IT staff members who need specialized support
- Companies requiring advanced cybersecurity expertise beyond their team’s capabilities
- Businesses facing compliance requirements (HIPAA, PCI, CMMC) that demand specialized knowledge
- IT departments overwhelmed by security incidents and need SOC support
- Organizations wanting to retain strategic IT control while outsourcing routine monitoring
Key Benefits:
- Leverage existing IT investment while filling skill gaps
- 24/7 monitoring and security without hiring night staff
- Access to specialized compliance and cybersecurity expertise
- Predictable costs for enhanced capabilities
- Allows internal IT to focus on strategic business initiatives
Co-Managed Service Models and Pricing
Important: These are industry-wide pricing ranges for reference only. Each organization has unique requirements that affect actual pricing. At Facet Technologies, we customize co-managed solutions based on your specific needs, existing infrastructure, and business objectives.
Basic Co-Management ($50-$100/user/month):
- 24/7 network and security monitoring
- Backup monitoring and management
- Patch management support
- Basic help desk overflow support
- Security incident response
Advanced Co-Management ($75-$150/user/month):
- All basic services plus:
- SOC monitoring and threat response
- Compliance monitoring and reporting
- Advanced cybersecurity tools and management
- Dedicated cybersecurity consulting hours
- Strategic planning support
Specialized Services (à la carte):
- HIPAA compliance management: $25-$50/user/month
- PCI DSS compliance: $20-$40/user/month
- CMMC preparation and maintenance: $30-$60/user/month
- Advanced threat hunting: $15-$30/user/month
Critical Support Even for “Self-Sufficient” IT Teams
The Reality: No IT Team Is Truly Independent
Even organizations with capable in-house IT staff typically require external support in critical areas that are difficult to manage internally:
Software Licensing Management:
- Volume licensing negotiations and compliance
- License optimization and cost management
- Software audit preparation and response
- New technology evaluation and procurement
Cybersecurity Expertise:
- 24/7 security monitoring and threat detection
- Incident response and forensic analysis
- Security tool management and optimization
- Compliance reporting and documentation
Specialized Compliance Requirements:
- HIPAA, PCI, CMMC, and other regulatory frameworks
- Risk assessments and remediation planning
- Policy development and implementation
- Audit preparation and support
Why Even Small IT Teams Need Partners Like Facet:
- You can’t monitor 24/7 – Your IT person needs sleep, vacations, and sick days
- Cybersecurity is a full-time specialization – Threats evolve faster than any single person can track
- Compliance requires dedicated expertise – Regulations change frequently and penalties are severe
- Software licensing is complex – Mistakes can cost thousands in audit penalties
- Emergency response needs immediate expertise – Ransomware and breaches require specialized knowledge
Facet’s Flexible Co-Managed Approach:
We work with organizations of all sizes, from single-person IT departments to full teams. Our approach is to complement your existing capabilities rather than replace them, providing:
- Targeted expertise in areas where you need support
- 24/7 monitoring to extend your coverage
- Software licensing management to optimize costs and ensure compliance
- Cybersecurity enhancements to protect against evolving threats
- Flexible engagement models that scale with your needs
Co-Managed Cost Examples
These examples use general industry pricing for illustration. Actual costs depend on specific requirements, existing infrastructure, and customized service packages.
Small Business (25 employees) with 1 IT person:
- Existing IT staff: $67,800 annually
- Basic co-management: $15,000-$30,000 annually
- Total: $82,800-$97,800 annually
- Value: Gains 24/7 monitoring, cybersecurity expertise, compliance support
Medium Business (50 employees) with 2 IT staff:
- Existing IT staff: $139,500 annually (2 technicians)
- Advanced co-management: $45,000-$90,000 annually
- Total: $184,500-$229,500 annually
- Value: SOC monitoring, compliance management, advanced security tools
Large Business (150 employees) with 3-4 IT staff:
- Existing IT staff: $348,800 annually
- Comprehensive co-management: $135,000-$270,000 annually
- Total: $483,800-$618,800 annually
- Value: Enterprise-grade security, full compliance support, strategic partnership
Single IT Person Scenario: Even if you have just one capable IT professional, they likely need support with:
- Software licensing optimization: Save 15-30% on annual software costs
- 24/7 security monitoring: Provide coverage when your IT person isn’t available
- Compliance management: Ensure HIPAA, PCI, or other regulatory requirements are met
- Cybersecurity expertise: Access to specialized tools and incident response capabilities
Facet works with businesses of all sizes to provide exactly the support needed, whether that’s comprehensive co-management or targeted assistance in specific areas like cybersecurity and compliance.
Industry-Specific Example: Healthcare Organizations
Unique Healthcare IT Challenges
Compliance Requirements:
- HIPAA Privacy and Security Rules
- HITECH Act breach notification requirements
- State-specific healthcare data protection laws
- Medical device security and integration
Cost Implications for In-House Healthcare IT:
50-Person Medical Practice – In-House Approach:
- IT Manager (HIPAA-trained): $155,000 + $47,100 benefits = $202,100
- IT Technician (healthcare experience): $58,000 + $17,600 benefits = $75,600
- HIPAA compliance training: $5,000 annually
- Specialized healthcare IT tools: $15,000 annually
- Risk assessment and documentation: $8,000 annually
- Total: $305,700 annually
50-Person Medical Practice – Managed Services:
- Healthcare-specialized managed services: $200-$250/user/month (industry range)
- HIPAA compliance included
- Medical device support
- Breach response planning
- Total: $120,000-$150,000 annually
- Savings: $155,700-$185,700 (51-61% reduction)
50-Person Medical Practice – Co-Managed:
- 1 existing IT person: $75,600 annually
- Healthcare co-managed services: $75-$125/user/month = $45,000-$75,000 annually (industry range)
- Total: $120,600-$150,600 annually
- Savings: $155,100-$185,100 (51-61% reduction)
- Benefits: Retains internal IT control, gains HIPAA expertise and SOC monitoring
Important: Healthcare IT requirements are highly specific. These cost estimates are based on general industry pricing. Facet creates customized healthcare IT solutions based on specific practice needs, existing systems, and compliance requirements. Actual pricing may vary significantly based on factors such as electronic health records integration, medical device connectivity, and specific HIPAA risk assessment findings.
Break-Fix vs. Managed vs. Co-Managed: The Hidden Costs
Break-Fix Model Risks
Hourly Rates in Central Illinois:
- Basic technician: $150-$250/hour
- Emergency/after-hours: $250-$350/hour
- Cybersecurity incident response: $300-$500/hour
Typical Break-Fix Scenarios:
- Server failure: $2,000-$8,000 per incident
- Ransomware attack: $15,000-$100,000+ (including downtime)
- Compliance violation: $50,000-$500,000 in fines
- Data breach: $150,000+ average cost for small businesses
Why Proactive Management Saves Money
Prevented Incidents:
- 90% reduction in security incidents with proper monitoring
- 75% reduction in system downtime with proactive maintenance
- 80% reduction in compliance violations with proper oversight
- 60% reduction in user productivity issues with managed services
Financial Analysis: 5-Year Total Cost of Ownership
Small Business (25 employees)
In-House IT:
- Year 1: $85,000 (hiring, setup, equipment)
- Years 2-5: $80,000/year (salary increases, training)
- 5-Year Total: $405,000
- Risk: Limited expertise, no 24/7 coverage
Managed Services (Comprehensive):
- Years 1-5: $52,500/year average
- 5-Year Total: $262,500
- Savings: $142,500 (35% reduction)
Co-Managed Services:
- Existing IT: $70,000/year + Co-managed: $22,500/year
- 5-Year Total: $462,500
- Value: Enhanced capabilities with existing staff
Medium Business (50 employees)
In-House IT:
- Year 1: $295,000 (hiring, setup, equipment)
- Years 2-5: $285,000/year (salary increases, benefits)
- 5-Year Total: $1,435,000
- Gap: Still lacks cybersecurity specialist
Managed Services (Comprehensive):
- Years 1-5: $105,000/year average
- 5-Year Total: $525,000
- Savings: $910,000 (63% reduction)
Co-Managed Services:
- Existing IT: $144,000/year + Co-managed: $67,500/year
- 5-Year Total: $1,057,500
- Savings: $377,500 (26% reduction)
- Value: Retains control, adds expertise
Large Business (150 employees)
In-House IT (Full Department):
- Year 1: $650,000 (hiring, setup, equipment)
- Years 2-5: $630,000/year (salary increases, benefits)
- 5-Year Total: $3,170,000
Managed Services (Comprehensive):
- Years 1-5: $315,000/year average
- 5-Year Total: $1,575,000
- Savings: $1,595,000 (50% reduction)
Co-Managed Services:
- Existing IT: $400,000/year + Co-managed: $200,000/year
- 5-Year Total: $3,000,000
- Savings: $170,000 (5% reduction)
- Value: Maximum control with enterprise-grade capabilities
Beyond Cost: Strategic Value Considerations
In-House IT Advantages
Control and Customization:
- Direct management of IT resources and priorities
- Immediate availability during business hours
- Deep knowledge of specific business processes and workflows
- Ability to customize solutions exactly to unique business needs
- Complete control over security policies and implementations
Managed Services Advantages
Comprehensive Expertise:
- Access to diverse, specialized skill sets unavailable locally
- Continuous training on latest technologies and threats
- Industry best practices and proven methodologies
- 24/7 monitoring and support capabilities
- Predictable monthly costs with no surprises
Co-Managed Services: Best of Both Worlds
Strategic Benefits:
- Retain internal IT knowledge and business understanding
- Gain access to specialized cybersecurity and compliance expertise
- 24/7 monitoring without hiring additional staff
- Flexible engagement model that scales with business needs
- Cost-effective way to fill critical skill gaps
Operational Benefits:
- Internal IT focuses on strategic business initiatives
- External partner handles routine monitoring and security
- Immediate access to incident response capabilities
- Compliance expertise without full-time specialist salary
- Technology refresh planning with expert guidance
Making the Right Choice for Your Business
Choose In-House IT When:
- You have 100+ employees with highly complex, unique IT requirements
- Your industry requires maximum control over all IT operations
- You have budget for ongoing training, certifications, and technology refresh
- Your IT requirements are stable and predictable
- You can afford redundancy for 24/7 coverage and vacation coverage
- You have access to local cybersecurity and compliance talent
Choose Managed Services When:
- You have fewer than 100 employees
- You need 24/7 support and monitoring capabilities
- Cybersecurity and compliance are major concerns
- You want predictable, comprehensive IT costs
- You lack specialized IT expertise in-house
- Your focus should be on core business operations, not IT management
- You need rapid access to diverse technical skills
Choose Co-Managed Services When:
- You have 1-3 existing IT staff who need specialized support
- You want to retain internal IT control while gaining expertise
- You need cybersecurity or compliance capabilities beyond your team’s skills
- You’re looking for 24/7 monitoring without hiring additional staff
- You want to transition gradually from in-house to managed services
- You need specific expertise (security, compliance) without full-time hires
Questions to Ask When Evaluating Options
For Managed Service Providers
Service and Support:
- What is your guaranteed response time for different types of issues?
- Do you provide 24/7 support, and what is included in the base price?
- How do you handle emergency situations and after-hours support?
- What is your escalation process for complex technical issues?
Security and Compliance: 5. What cybersecurity measures are included in your base package? 6. How do you handle industry-specific compliance requirements? 7. What is your incident response process for security breaches? 8. Do you provide ongoing security awareness training for employees?
Co-Managed Capabilities: 9. How do you work with existing in-house IT staff? 10. What tools and access will you provide to our internal team? 11. How do you handle knowledge transfer and collaboration? 12. Can you provide training and mentoring for our IT staff?
For In-House IT Planning
Skill Assessment:
- What are the current skill gaps in our IT team?
- How much will it cost to fill these gaps through hiring or training?
- Do we have coverage for vacations, sick leave, and emergencies?
- How will we stay current with evolving cybersecurity threats?
Growth Planning: 5. How will our IT needs change as we grow? 6. Can we scale our IT team cost-effectively? 7. What will technology refresh cycles cost over the next 5 years? 8. How will we handle compliance requirements as they evolve?
Conclusion: The Strategic Path Forward
The choice between in-house, managed, and co-managed IT isn’t just about immediate costs—it’s about positioning your business for sustainable growth while managing risk effectively. For most Peoria businesses, a hybrid approach offers the optimal balance of control, expertise, and cost-effectiveness.
Key Decision Factors:
- Business Size and Complexity: Smaller organizations (under 50 employees) typically benefit most from managed services, while larger organizations may prefer co-managed approaches
- Industry Requirements: Healthcare, manufacturing, and other regulated industries often require specialized compliance expertise best obtained through managed or co-managed services
- Existing IT Investment: Organizations with current IT staff can leverage co-managed services to enhance capabilities without starting over
- Growth Plans: Managed and co-managed services offer better scalability for growing businesses
- Risk Tolerance: 24/7 monitoring and specialized security expertise are typically more cost-effective through managed services
Recommended Next Steps:
- Conduct a comprehensive IT cost analysis including all hidden expenses and opportunity costs
- Assess your current cybersecurity and compliance posture against industry requirements
- Evaluate your existing IT team’s skills and identify critical gaps
- Schedule a consultation with Facet Technologies to discuss your specific needs and explore customized solutions
- Request a detailed cost analysis based on your actual infrastructure and requirements rather than industry averages
Why Schedule a Consultation with Facet?
- Free, no-obligation assessment of your current IT infrastructure and costs
- Customized recommendations based on your specific business needs, not generic solutions
- Transparent pricing with detailed explanations of what’s included and what’s not
- Local expertise with over 30 years of experience serving Central Illinois businesses
- Flexible engagement options from targeted co-managed services to comprehensive managed IT
- Industry-specific knowledge including healthcare, manufacturing, and compliance requirements
Even if you think your in-house IT is sufficient, a consultation can reveal:
- Potential cost savings through software licensing optimization
- Critical security gaps that need immediate attention
- Compliance risks that could result in significant penalties
- Opportunities to enhance your IT capabilities without major investments
Remember: The cost of prevention is always less than the cost of recovery. Whether you need comprehensive managed services, targeted co-managed support, or just want to ensure you’re not missing critical vulnerabilities, Facet’s experts can help you make informed decisions about your IT strategy.
The most successful businesses are those that leverage the right combination of internal capabilities and external expertise to achieve their strategic objectives. For most Central Illinois organizations, this means embracing a partnership approach to IT that combines the best of in-house knowledge with managed service capabilities.
Ready to Optimize Your IT Strategy?
Don’t base critical business decisions on general industry pricing. Every organization has unique requirements that affect both costs and optimal solutions. Whether you’re looking to reduce costs, enhance security, ensure compliance, or simply want a second opinion on your current IT approach, Facet’s experts are here to help.
Schedule your free consultation today to receive:
- Customized cost analysis based on your actual infrastructure
- Specific recommendations for your industry and business size
- Transparent pricing with no hidden fees or surprises
- Flexible solutions that work with your existing IT investments
- Expert guidance from a team with over 30 years of local experience
Contact Facet Technologies at (309) 689-3900 or visit facettech.com to schedule your free assessment. Because when it comes to IT strategy, one size doesn’t fit all.
