You need reliable IT support, but hiring a full-time IT person costs $80,000-$120,000 per year before super, leave, and training. For a business with 10-30 employees, that's a significant commitment — especially when you're not sure you need someone full-time.
This is the dilemma facing thousands of Australian small businesses. Let's break down your options honestly.
The Real Cost of In-House IT
When you hire an IT professional in-house, the salary is just the beginning:
| Cost Component | Annual Estimate |
|---|---|
| Salary (mid-level IT generalist) | $85,000 - $110,000 |
| Superannuation (11.5%) | $9,775 - $12,650 |
| Leave loading, sick leave, annual leave | $8,000 - $12,000 |
| Training and certifications | $3,000 - $8,000 |
| Tools, licences, and subscriptions | $2,000 - $5,000 |
| Recruitment costs (amortised) | $5,000 - $15,000 |
| Total | $112,775 - $162,650 |
And that gives you one person. When they're sick, on holiday, or leave the business, you have zero IT coverage. They also can't be an expert in everything — networking, security, cloud, applications, and helpdesk all require different specialisations.
What a Managed Service Provider (MSP) Offers
A managed IT services provider gives you access to a team of specialists for a predictable monthly fee. Typical MSP services include:
- Helpdesk support — Your team calls or emails when they need help
- Proactive monitoring — Servers, networks, and devices monitored 24/7
- Patch management — Software kept up to date automatically
- Backup and disaster recovery — Data protected and recoverable
- Cyber security — Endpoint protection, email security, and threat management
- Strategic advice — Technology planning aligned with your business goals
Typical MSP Costs for Australian Small Businesses
| Business Size | Monthly Cost Range | Annual Cost |
|---|---|---|
| 1-10 employees | $500 - $1,500/month | $6,000 - $18,000 |
| 11-25 employees | $1,500 - $4,000/month | $18,000 - $48,000 |
| 26-50 employees | $4,000 - $8,000/month | $48,000 - $96,000 |
Even at the high end, an MSP typically costs less than a single in-house IT hire while providing broader expertise and coverage.
When In-House IT Makes More Sense
An MSP isn't always the answer. In-house IT might be better if:
- You have complex, custom systems that require deep, ongoing knowledge of your specific environment
- Your industry has strict compliance requirements that benefit from dedicated, on-site IT governance
- You're large enough to justify a team (typically 50+ employees) — one person isn't a team
- Technology is your core business — if you're a software company, you need internal technical capability
- You need someone physically present for manufacturing, retail, or warehouse environments with on-site equipment
When an MSP Makes More Sense
A managed IT provider is typically the better choice when:
- You have 5-50 employees and can't justify a full-time IT salary
- You need broad expertise across networking, security, cloud, and applications
- You want predictable IT costs without surprise invoices
- You're growing and need IT that scales with you
- You're tired of reactive IT — fixing things only when they break
- You can't find or keep IT staff — the Australian tech skills shortage is real
The Hybrid Approach
Many businesses find that a hybrid model works best:
- Internal IT coordinator — Someone who understands the business and coordinates with the MSP (doesn't need to be a senior technical role)
- MSP for technical delivery — Handles the complex technical work, monitoring, and after-hours support
- Specialist consultants — Brought in for specific projects like cloud migration or security audits
This gives you the business knowledge of an internal resource with the technical depth and coverage of an external provider.
What to Look for in an Australian MSP
Not all MSPs are created equal. Here's what separates the good ones from the rest:
Must-Haves
- Australian-based support team — You need people who understand the local business environment and time zones
- Transparent pricing — No hidden fees for "out of scope" work
- Defined response times — Clear SLAs for how quickly they'll respond to different priority levels
- Proactive approach — They should be identifying and fixing problems before you notice them
- Security credentials — At minimum, they should be following the Australian Cyber Security Centre's Essential Eight framework
Red Flags
- Lock-in contracts — Be wary of providers requiring 3-year commitments upfront
- They own your data or accounts — You should always own your own domain, accounts, and data
- No documentation — If they can't explain what they've set up and why, you're hostage to their knowledge
- Reactive only — If they only show up when things break, that's not managed services — that's break-fix support with a monthly fee
- One-size-fits-all — Your 15-person accounting firm has different needs than a 30-person construction company
Making the Transition
If you're currently managing IT yourself (or not managing it at all) and considering an MSP:
- Document what you have — Make a list of all your systems, accounts, and subscriptions
- Identify your pain points — What breaks most often? What wastes the most time?
- Get multiple quotes — Talk to at least three providers and compare like for like
- Check references — Ask to speak with current clients in a similar industry or size
- Start with an assessment — A good MSP will audit your current setup before quoting
How OrionX Can Help
We understand that Australian small businesses need IT support that's practical, affordable, and aligned with business goals — not technology for technology's sake.
Whether you need full managed IT services, help with a specific project, or just an honest assessment of your current setup, we're here to help. We don't lock you into long contracts, and we make sure you always own and control your own technology.
Talk to us about your IT needs — we'll give you an honest assessment of whether managed services, in-house IT, or a hybrid approach makes the most sense for your business.
