The case for in-house IT
An in-house IT employee understands your business deeply. They know your specific software quirks, your staff's habits, and your infrastructure history. When something breaks, they're physically present. There's no ticket to log, no SLA to wait on.
For companies with 50+ staff, complex bespoke systems, or significant on-premise infrastructure, an internal IT person (or team) often makes sense. The downside is cost and coverage: a competent IT generalist in Dublin costs €40,000-€55,000 per year in salary alone, plus benefits, training, and cover for leave and illness.
You also get one person's skill set. If that person has strong networking knowledge but limited cybersecurity depth, your security posture reflects that gap.
The case for managed services
A managed service provider (MSP) gives you a team with specialist coverage across networking, security, storage, and cloud, for a monthly flat fee that's typically lower than one salary. For Irish SMEs under 40 staff, this is usually the better deal.
The key advantages:
- Breadth of expertise: No single person knows everything. An MSP brings specialists in networking, security, backup, and cloud to every client.
- Predictable cost: Fixed monthly fee vs. salary, NI contributions, pension, training budget, and unpredictable emergency call-out charges.
- Proactive monitoring: Good MSPs monitor your systems 24/7 and fix problems before they cause downtime. An in-house person finds out when you email them.
- Cover: If your in-house IT person is sick, on annual leave, or resigns, your IT support disappears. An MSP has the same response time regardless of staff availability.
The cost comparison
| Cost element | In-house (annual) | MSP (annual, 15 users) |
|---|---|---|
| Base salary / fee | €45,000-€55,000 | €4,800-€9,600 |
| Employer PRSI | ~€5,400-€6,600 | - |
| Pension contribution | €1,500-€3,000 | - |
| Training & certs | €1,000-€3,000 | Included |
| Holiday/sick cover | None or agency cost | Included |
| After-hours support | Not typical | Included |
| Security monitoring | Not typical | Included |
| Estimated total | €53,000-€68,000 | €4,800-€9,600 |
The numbers above are rough averages. MSP pricing varies by contract scope; in-house salary varies by experience level and location (Dublin commands a premium). But the order of magnitude difference is real for smaller businesses.
What managed services doesn't cover well
Managed services has limitations. Response time for on-site issues is longer than having someone in the building. For businesses with continuous production IT requirements, a factory floor, a trading floor, a busy retail till system, the delay in physical attendance can matter.
Deep familiarity with your bespoke applications takes time to build. A new MSP relationship will have a learning curve for the first few months.
Some businesses do best with a hybrid: a managed services provider handles infrastructure, monitoring, and security, while a part-time or junior in-house IT person handles day-to-day helpdesk. This gives you on-site presence at a fraction of a full-time cost, with specialist backup behind them.
The honest recommendation
For Irish businesses under 30 staff: managed services almost always wins on cost and coverage. Between 30-60 staff: it depends on your infrastructure complexity. Over 60 staff: a hybrid model is usually right.
The worst outcome is a company too small to justify a full-time IT hire, who still hires one and ends up with expensive, underutilised headcount.
Want to know what managed IT would cost for your business?
RAIT provides managed IT support for Irish SMEs, fixed monthly pricing, proactive monitoring, and a real team in Dublin. No contracts longer than 30 days.
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