The True Cost of In-House IT vs. Managed Services in India

Every CFO eventually asks the question: should we build our IT team in-house or outsource to a managed services provider? The answer isn't always obvious, especially when you factor in the hidden costs that don't show up on a simple salary comparison.

The Real Cost of In-House IT

For a 200-employee company in India, a basic in-house IT team typically costs ₹1.2-1.8 Cr annually when you include: salaries for 4-6 IT staff (₹60-90L), tools and software licenses (₹15-25L), training and certifications (₹5-10L), attrition and recruitment costs at 25% annual turnover (₹10-15L), and management overhead (₹10-15L). That's before you account for the cost of knowledge loss when key people leave.