In this guide · 8 sections
- 01Outsourced vs in-house IT: the short version
- 02What an in-house IT hire costs: MOM salary benchmarks
- 03The full yearly cost of one IT employee
- 04Coverage gaps: leave, skills and single points of failure
- 05When a full-time IT hire makes sense
- 06Hybrid IT: an internal coordinator plus outside help
- 07Do it yourself or get help?
- 08Frequently asked questions
Short answer
Outsource if you have fewer than roughly 30 to 50 staff, mostly cloud systems and no daily on-site needs. Hire in-house when you need someone physically present every day or run specialised systems. Many SMEs combine both: one internal IT coordinator plus an outside provider.
Outsourced vs in-house IT: the short version
The choice is rarely all-or-nothing. It is about which work needs a person inside the business and which is better bought from specialists.
Outsourced IT
Most SMEsMonthly plan or per job
- Several people and skills behind one contract
- No recruitment, leave cover or resignation risk
- Cost scales with users and needs
- Remote providers may not visit on site; check
Best for: Cloud-based teams up to roughly 30-50 staff.
In-house IT hire
Larger or on-site heavySalary + CPF + extras
- Someone in the office every day
- Knows your people, systems and quirks
- Single person: gaps during leave or sick days
- Hard to cover security, networking and cloud alone
Best for: Firms with daily on-site needs or specialised systems.
The headcount figures are a rule of thumb, not an official threshold. A 20-person design studio fully on Microsoft 365 and laptops needs far less on-site help than a 20-person clinic with front-desk PCs, printers and medical devices.
What an in-house IT hire costs: MOM salary benchmarks
MOM's Occupational Wages 2025 tables, released on 30 June 2026, give median monthly wages for full-time resident employees as of June 2025. Gross wages exclude bonuses and employer CPF.
| Occupation (SSOC 2024) | Median gross wage, all firms | Firms with 25-199 staff |
|---|---|---|
| IT support technician | S$4,586 | S$4,440 |
| IT infrastructure technician | S$5,189 | S$4,690 |
| Network/server/computer systems administrator | S$6,167 | S$5,945 |
| ICT service manager | S$9,510 | S$9,000 |
Medians hide a wide spread: an experienced technician who also handles security and cloud will cost more, a fresh graduate less. Use these as a starting point, not an offer figure.
The full yearly cost of one IT employee
Salary is only part of the bill. For a typical IT support technician at the MOM median:
- Gross wages (12 x S$4,586)MOM 2025 median, before bonusS$55,032
- Employer CPF at 17%Age 55 and below, under the S$8,000 ceilingS$9,355
- Bonus, training, certificationsOften one month or more, plus coursesVaries
- Laptop, tools and admin licencesRemote support, password manager, test devicesVaries
- Recruitment and replacementAgency fees, notice periods, handover gapsVaries
Wages plus employer CPFAbout S$64,400 a year before extras
Wages from MOM Occupational Wages 2025; CPF rates from CPF Board, effective 1 January 2026. Figures exclude bonus and other employment costs.
CPF Board lists employer contributions of 17% for employees aged 55 and below from 1 January 2026, with the total contribution capped at S$2,960 a month, which corresponds to an S$8,000 ordinary wage ceiling (CPF contribution rates).
Coverage gaps: leave, skills and single points of failure
The hidden risk of one in-house IT person is not cost but coverage. Annual leave, sick days, reservist and resignation all leave the business without IT, often at the worst moment.
Where in-house wins
- Same-day, in-person help with printers, AV and desks
- Deep knowledge of your own systems and staff
- Can run internal projects and supplier coordination
- Present for onboarding new joiners in person
Where in-house struggles
- No cover during leave, illness or resignation
- One person rarely covers security, networking, cloud and devices well
- Admin passwords and knowledge concentrated in one head
- Little time left for security reviews once tickets pile up
When a full-time IT hire makes sense
Hire in-house when the work genuinely needs a person in the building most days, or when your systems are specialised enough that outsiders take too long to learn them.
Signs you are ready for an in-house IT person
If you tick only the first box, a part-time or shared on-site technician from a local provider may be enough. Our guide to choosing IT support in Singapore explains what to check in a provider's on-site terms.
Hybrid IT: an internal coordinator plus outside help
Many growing SMEs land in the middle. An existing staff member, often in admin or operations, becomes the IT coordinator: first contact for staff, keeper of the asset list and supplier contact. An outside provider handles the specialist work.
| Task | Internal coordinator | Outside provider |
|---|---|---|
| Joiners and leavers | Raises the request, collects devices | Creates and removes accounts, licences, access |
| Laptops and phones | Hands out devices, logs serial numbers | Encryption, updates, antivirus, remote wipe |
| Security | Reports suspicious emails | MFA, email protection, monthly checks |
| Projects | Agrees scope and timing | Migrations, new systems, certifications |
| Vendor management | Holds contracts and renewals | Technical evaluation and set-up |
For costs of the outsourced side, see our IT support cost guide and our comparison of managed IT services vs ad-hoc support.
Do it yourself or get help?
Very small teams often run IT themselves with a capable staff member and good cloud tools. The danger point is security: settings drift, leavers keep access, and nobody checks backups. That is the part most worth outsourcing, even if everything else stays in-house.
We work remotely only, with no on-site visits, so we suit cloud-based teams or sit alongside an in-house person or local technician. Protect Standard (S$19 per user a month, minimum 3 users) keeps security settings, antivirus, device encryption and joiners and leavers under control every month. For one-off tasks, a Quick Fix (S$119 for one hour) covers small jobs. Setting up a new company? Start with our new company IT setup cost guide.
Frequently asked questions
MOM's Occupational Wages 2025 tables put the median gross monthly wage at S$4,586 for an IT support technician and S$6,167 for a systems administrator, as of June 2025, excluding bonuses. Add employer CPF of 17% for staff aged 55 and below, bonus, training, tools and recruitment costs to get the full yearly cost.
There is no official threshold. As a rule of thumb, many cloud-based businesses outsource until roughly 30 to 50 staff. The real triggers are daily on-site needs, specialised systems, several sites, or enough steady work to fill a full-time role. Even then, most firms keep outside help for security, projects and leave cover.
Not inherently. A good provider brings security skills and processes one in-house person may lack, such as monthly checks of MFA, email protection and device encryption. The risks are different: you must vet the provider, limit their admin access to what they need, keep your own break-glass admin account and make sure the contract covers security responsibilities.
Some can and some cannot. Many local managed service providers offer on-site visits, often at an extra charge or within a set number of hours. Remote-only providers, including IT Sorted, handle everything over the internet. If you need in-person help with printers, meeting rooms or front desks, check the provider's on-site terms before signing.
A staff member, often from admin or operations, acts as IT coordinator: first point of contact, keeper of the asset list and supplier contact. An outside provider handles specialist work such as account management, security settings, device management, backups and projects. It keeps costs down while covering leave and skills one person cannot.