It is THE question every SMB leader faces: should you hire a system administrator or outsource IT management to a managed services provider (MSP)? Both options have real advantages. This guide helps you decide based on your specific situation -- with salary data from a French/European context and principles that apply globally.
The SMB dilemma
Your business has grown. You now have 5, 10, or 20 servers, business-critical applications, and you can no longer afford to "wing it". Two paths lie ahead:
Hire a sysadmin
A full-time employee dedicated to your IT infrastructure
Cost comparison: sysadmin cost vs managed services
Let us start with the numbers -- often the number one criterion. The figures below use French salary benchmarks as a reference. Employer contributions in France run approximately 45% on top of gross salary, making the total cost of employment significantly higher than the headline pay.
Cost of an in-house system administrator (French context)
| Annual gross salary (experienced). In France, a junior sysadmin earns around 35-40K EUR/year; an experienced one 45-55K EUR/year. | 45,000 EUR - 55,000 EUR |
| Employer contributions (~45% in France) | + 20,000 EUR - 25,000 EUR |
| Equipment, licences, training | + 3,000 EUR - 8,000 EUR |
| Management, HR, office space | + 5,000 EUR - 10,000 EUR |
| True total cost | 73,000 EUR - 98,000 EUR/year |
Salaries reflect the French market. In Western Europe and North America, base salaries may be higher, but the employer-cost multiplier (benefits, taxes, insurance) follows a similar pattern -- typically adding 30-60% on top of gross pay.
Cost of outsourced managed services (5-10 servers)
| 24x7 managed services (150 EUR/month x 7 servers) | 12,600 EUR/year |
| 24/7 on-call support included | 0 EUR (included) |
| No employer contributions | 0 EUR |
| No recruitment/training costs | 0 EUR |
| Total cost | 12,600 EUR/year |
Potential savings
For an SMB with 5-10 servers, outsourcing can save 60,000 EUR to 85,000 EUR per year compared to a full-time employee (French salary context) -- and you get 24/7 coverage that is impossible to achieve with a single person.
Pros and cons: in-house IT vs MSP
In-house sysadmin
Pros
- + Deep knowledge of your business
- + Immediate on-site availability
- + Integration with the team
- + Fast response for small requests
Cons
- - High cost (70-100K EUR/year in France)
- - No 24/7 coverage
- - Bus factor risk (single person)
- - Difficult to recruit
- - Expertise limited to their skills
- - Holidays, sick leave, resignation
Managed Services (MSP)
Pros
- + Predictable cost (10-25K EUR/year)
- + 24/7 coverage included
- + Team = no single point of failure
- + Broad, up-to-date expertise
- + Contractual commitments (response time SLA)
- + Immediate scalability
Cons
- - Less business-specific knowledge
- - Remote intervention (unless on-site option)
- - Dependency on the provider
How to decide?
Use this decision tree to guide your choice:
Do you need a daily on-site IT presence?
Constant end-user support, frequent physical interventions...
Yes -> Lean towards hiring | No -> Question 2
Is your annual IT budget above 80,000 EUR?
A budget that covers hiring AND tools/training
Yes -> Hiring is feasible | No -> Outsourcing recommended
Do you need 24/7 coverage?
Critical applications, e-commerce, continuous production...
Yes -> Outsourcing (or hybrid) | No -> Question 4
Do you have very specific technologies?
Rare line-of-business software, industrial hardware, special certifications...
Yes -> Lean towards hiring | No -> Outsourcing recommended
The hybrid model: the best of both worlds
Many SMBs opt for a mixed approach that combines the advantages of both models:
Typical hybrid setup
Internal IT manager
- • Projects and improvements
- • Level 1 user support
- • Liaison with business units
- • MSP oversight
External MSP
- • Server maintenance
- • 24/7 on-call support
- • Deep technical expertise
- • Level 2-3 support
This model is particularly well-suited for SMBs with 50 to 200 employees: you keep an internal contact who understands your business, while benefiting from the expertise and 24/7 coverage of an MSP. Choosing the right provider is crucial -- favour a human-scale partner. Choosing a human-scale provider over a large corporation often makes all the difference.
Frequently asked questions
Need help deciding?
RDEM Systems offers a free infrastructure audit to determine the best solution for your business. Managed services from 70 EUR/month (business hours) or 150 EUR/month (24x7) per server.