The Economics of a Subscription-Based Tech Department for SMBs

Mirgen Hoxha, Founder & CEO – Motomtech | July 2025

Executive Summary

Small and mid-sized businesses (SMBs) often face a critical dilemma: they need the skills of a full tech department—software developers, cloud engineers, IT support, security specialists, and compliance experts—but hiring these roles individually is cost-prohibitive.

Motomtech’s Technology Department as a Service (TDaaS), delivered via a subscription-based marketplace, provides SMBs with an on-demand team that delivers Fortune 500-level capabilities at a fraction of the cost.

This paper breaks down the financial and operational benefits of replacing or supplementing in-house teams with a subscription-based model.

The Cost Problem in SMB Technology

  1. High Salaries for Specialized Roles
  • Senior Developer: $120k–$160k/year

  • Cloud Engineer: $110k–$140k/year

  • Security Specialist: $100k–$130k/year

  • Compliance Officer: $90k–$120k/year

  • IT Support: $50k–$70k/year

 

Building a full team can exceed $600,000/year—before benefits, training, and overhead.

  1. Inefficient Utilization
  • Many SMBs underutilize their tech hires due to fluctuating workload demands.

  1. Recruitment & Turnover Costs
  • Hiring can take 2–6 months per role, and turnover often results in lost productivity and additional recruitment expenses.

 

The TDaaS Marketplace Advantage

Motomtech’s subscription-based model offers:

  • On-Demand Roles: Business Analysts, Designers, Developers, QA, Cloud Engineers, Security & Compliance experts.

  • Flexible Hours: Scale resources up or down as needed.

  • Predictable Monthly Costs: No surprise expenses or overtime bills.

  • Integrated Delivery: One unified team managing software, cloud, security, compliance, and IT support.

 

Economic Impact

Cost Savings

  • SMBs save up to 70% compared to hiring an equivalent in-house team.

  • No payroll taxes, employee benefits, or long-term contracts.

Operational Efficiency

  • Teams are assembled and ready in 2 weeks.

  • Dedicated project managers ensure productivity and delivery quality.

Revenue Impact

  • Faster time-to-market for products and services.

  • Improved uptime and security reduce lost revenue opportunities.

 

Case Study: Construction Company

A mid-sized construction firm replaced a 5-person in-house IT and dev team with a Motomtech TDaaS subscription:

  • Annual Savings: $320,000+

  • Time-to-Market: 40% faster project launches

  • Downtime Reduction: 75% less unplanned downtime

 

Why Our Marketplace Model Wins Over Upwork, Fiverr, or Traditional Agencies

  • Upwork/Fiverr: Individual freelancers; lack of team cohesion and accountability.

  • Agencies: Often overpriced, limited flexibility, and no compliance/security integration.

  • Motomtech Marketplace: Fully managed, pre-vetted teams with all skill sets, scalable by subscription.

 

Conclusion

The economics are clear: SMBs can no longer justify the high costs and inefficiencies of traditional hiring for tech roles. A subscription-based technology department offers financial predictability, scalability, and enterprise-grade expertise, all while allowing SMBs to focus on their core business.

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