When an SME reaches a certain volume of IT support requests, the same question always arises: Is it worth hiring an in-house IT technician, or does it make more sense to keep—or start using—an external provider on a retainer basis? There is no one-size-fits-all answer, but there are objective criteria that can help you decide.
The actual cost of an in-house technician
Salary is only part of the cost. On top of this amount, you must add social security contributions, benefits, work equipment, ongoing training (essential in a rapidly changing field), and the cost of finding a replacement in the event of absence, sick leave, or resignation—a period during which the company is typically left without any technical support. Furthermore, a single in-house technician rarely has the same level of expertise in networks, security, the cloud, systems, and telephony—areas that, at an MSP, are usually handled by different specialists.
The cost of a contract with an external supplier
A monthly contract with an MSP typically includes access to a multidisciplinary team, without the hiring, training, and replacement costs associated with an in-house employee. The price is determined based on the number of users and the criticality of the infrastructure, and is generally more predictable than the sum of all direct and indirect costs associated with hiring an in-house employee.
When It Makes the Most Sense to Have an In-House Technician
- Large companies with hundreds of employees and very specific business needs;
- Sectors with highly specific regulatory requirements that demand a permanent physical presence and in-depth knowledge of internal proprietary systems;
- Companies that are already large enough to justify a full-fledged in-house IT team, with several people and a range of skills.
When Does It Make the Most Sense to Outsource?
- SMEs with between 10 and 200 employees that are too small to justify a full in-house technical team;
- Companies that need support coverage outside normal business hours, without having to hire additional shifts;
- Businesses that value budget predictability rather than variable costs dependent on incidents;
- Companies that need specialized expertise in security, networking, and the cloud, without having to hire someone for each area.
A hybrid model is also possible
The choice isn't always binary. Some companies choose to retain an in-house staff member to handle day-to-day issues that are more closely tied to the business, supplemented by an MSP for 24/7 monitoring, critical infrastructure management, and cybersecurity—combining the proximity of an in-house resource with the technical depth and availability of a specialized external team.
How to Decide
The most reliable criterion is not the price of each option in isolation, but the total cost of ownership over 12 months—including indirect costs and the risks of not having adequate technical support for each model. For most Portuguese SMEs without an established IT department, managed outsourcing tends to be the option that offers the best balance between cost, predictability, and the range of available expertise.
