IT as a Service vs In-House IT: Cost Comparison

Small business owners often assume that hiring an IT person is cheaper than outsourcing to a managed service provider. The math says otherwise. Here is a realistic comparison for a 15-person business in Brunei.

The True Cost of One IT Hire

A competent IT generalist in Brunei commands a salary of roughly 1,800 to 3,000 Brunei dollars per month. But salary is only part of the cost. Add employer TAP and SCP contributions (approximately 10 percent), annual bonus (typically one month), medical benefits, paid leave, training and certification, and the cost of a desk, computer, and software licences for that person. The fully loaded annual cost of one IT hire is roughly 30,000 to 50,000 Brunei dollars.

That buys you one person. One person who gets sick, takes leave, and has weekends off. One person who might be a strong network engineer but a weak security specialist. One person who cannot be on call 24/7 without burning out. One person who, if they leave, takes their knowledge of your infrastructure with them.

What One Person Cannot Do

IT is not one discipline. It is several:

• Server administration: Linux, Docker, networking, storage, and performance tuning.
• Security: Firewalls, intrusion detection, vulnerability scanning, patch management, and incident response.
• Backup and recovery: Backup strategy, automation, offsite replication, and quarterly restore testing.
• Application management: Deploying, configuring, updating, and troubleshooting multiple business applications.
• Helpdesk support: Responding to user issues quickly and patiently.
• Strategic planning: Capacity forecasting, software evaluation, and technology roadmapping.

No single person is expert in all of these. An in-house IT hire will be strong in one or two areas and adequate in the rest. An MSP provides a team with specialists in each area, for a fraction of the cost of hiring that team in-house.

ITaaS vs. In-House: The Numbers

The ITaaS model typically costs 20 to 40 percent of the fully loaded cost of one in-house IT hire. And instead of one generalist, you get a team of specialists, 24/7 monitoring, guaranteed response times, and institutional knowledge that does not disappear when someone resigns.

The Hidden Costs of In-House IT

Beyond the salary, there are costs that do not show up on a budget line:

• Hiring risk: An MSP eliminates the risk of a bad hire. If the MSP does not perform, you switch providers. If you hire the wrong IT person, you spend months managing them out and recruiting again.
• Knowledge concentration: When one person holds all the keys, the business is one resignation away from an IT crisis. An MSP documents everything and ensures multiple people understand your infrastructure.
• Tool and vendor selection: An in-house hire may have preferences based on their career history, not on what is best for your business. An MSP evaluates tools objectively because they support them long-term.
• Overtime and burnout: IT issues do not respect business hours. An in-house person working evenings and weekends burns out. An MSP has shift coverage.

When In-House Makes Sense

In-house IT makes sense when your business is large enough to justify a team (typically 100 employees or more), when you have complex industry-specific software that requires dedicated administration, or when regulatory requirements demand on-premises staff. For businesses under 50 employees, ITaaS is almost always the more cost-effective and lower-risk option.

VPS1 delivers IT as a Service for Brunei businesses. We manage your entire IT stack for a fixed monthly fee that is a fraction of one in-house hire. No recruitment. No burnout. No single point of failure.