Break-Fix vs. Managed IT: What Is the Difference and Which Do You Need?

How break-fix works

Break-fix is exactly what it sounds like. Something stops working, you call an IT person, they fix it, you pay for the time. Hourly rates in the Chicago area typically run $100 to $200 per hour, sometimes more for specialized work or after-hours calls.

There is no ongoing relationship, no monthly fee, and no proactive work. Your IT provider does not know your systems until something breaks. They are not watching for problems before they become failures.

For very small businesses with simple setups and low IT dependency, break-fix can be cost-effective. If your business can function for a day or two while you wait for someone to fix a problem, break-fix is a reasonable option.

How managed IT works

A managed IT provider, sometimes called an MSP or managed service provider, charges a flat monthly fee to monitor and maintain your systems on an ongoing basis. That fee covers things like proactive monitoring, security patching, backup management, and helpdesk support.

The key difference is that your IT provider is watching your systems continuously, not just when something breaks. Problems are often caught and fixed before you know they exist. Security patches are applied on a schedule rather than after a vulnerability is exploited.

You also get a defined relationship. Your provider knows your setup, your staff, and your business. When something goes wrong, you are not explaining your environment to someone who has never seen it before.

The real cost comparison

Break-fix looks cheaper on paper until you add up the actual costs. An unexpected server failure might take 8 to 12 hours to resolve. At $150 per hour, that is $1,200 to $1,800 for a single incident, not counting the lost productivity while your team waits.

Managed IT is a predictable expense. For a 10-person business, a comprehensive managed IT plan in Chicago might run $1,000 to $2,000 per month. That covers monitoring, maintenance, helpdesk support, and often security tools that would cost extra under break-fix.

There is also the cost of problems that break-fix never catches. Outdated software, declining hardware, security gaps. Break-fix providers have no incentive to find problems proactively. Managed IT providers do, because preventing problems is more efficient than fixing them.

When break-fix makes sense

• Your business has very simple IT needs: a few computers, basic internet, no servers or cloud dependencies
• Downtime of a day or two would not significantly affect your revenue or your clients
• You have staff who are comfortable handling minor issues themselves
• You are a solo operator or very early-stage business watching every dollar closely

When managed IT makes more sense

• Your business depends on its systems to serve clients, process transactions, or communicate
• You handle sensitive client data that needs to be protected with consistent security controls
• You have staff who need reliable IT support and cannot wait days for a fix
• You want predictable IT costs rather than unpredictable repair bills
• You have experienced growth and your IT setup has become more complex
• Your industry or your cyber insurance policy requires certain security controls to be maintained

The hybrid middle ground

Some businesses start with break-fix and move to managed IT as they grow. Others use a light managed IT plan for monitoring and security but handle day-to-day support themselves.

The right model is the one that matches your actual risk and your actual budget. A managed IT provider worth talking to will tell you honestly if break-fix is a better fit for your situation right now.