The Economics of Technology Department as a Service (TDaaS) for SMBs: Reducing Costs While Increasing Capability

Mirgen Hoxha, Founder & CEO – Motomtech | August 2025

Executive Summary

Small and mid-sized businesses (SMBs) are under constant pressure to adopt modern technology while keeping costs under control. Traditional hiring models often lead to ballooning expenses, long onboarding times, and inconsistent quality.

Motomtech’s Technology Department as a Service (TDaaS) offers SMBs a financially efficient alternative—delivering Fortune 500-level capabilities at up to 70% lower cost. This white paper outlines the economic advantages of TDaaS and why it’s a smarter financial strategy for technology adoption.

The Cost Problem for SMB Technology

For SMBs, building a full in-house tech department can easily exceed $750,000 annually when factoring in:

  • Salaries: Developers, designers, QA, cloud engineers, IT support, and compliance experts.

  • Benefits & Taxes: Often an additional 25–35% of salary.

  • Recruitment Costs: Average $4,000–$8,000 per hire.

  • Training & Retention: High turnover increases operational instability.

These costs make high-quality tech teams out of reach for most SMBs.

 

How TDaaS Changes the Equation

  1. Lower Fixed Costs:
    Instead of fixed payroll, SMBs pay for a subscription package based on actual needs.
  2. Zero Recruitment or Training Costs:
    Teams are ready in 2 weeks, already trained and proven in delivering results.
  3. Shared Expertise, No Dilution of Quality:
    A single TDaaS team covers all specializations—software, cloud, IT, compliance—that SMBs would otherwise have to hire separately.
  4. Predictable Monthly Pricing:
    Eliminates the unpredictability of project overruns and hourly billing.

 

Sample Cost Comparison

Role In-House Annual Cost TDaaS Annual Cost (Approx.) Savings
Full Stack Developer $120,000 Shared via subscription ~60%
Cloud Engineer $130,000 Shared via subscription ~65%
Compliance Officer $110,000 Shared via subscription ~70%
IT Support $80,000 Shared via subscription ~50%
Total (6-person team) $750,000+ $225,000–$300,000 ~65%

 

Beyond Cost Savings: ROI Benefits

  • Faster Deployment: Launch projects 3–5x faster than building a team in-house.

  • Reduced Downtime: Up to 80% fewer operational disruptions, increasing productivity.

  • Opportunity Cost Reduction: Leaders focus on revenue-generating activities instead of managing tech staff.

 

Case Study: Logistics Company

A regional logistics provider needed a custom software platform:

  • In-house estimate: $1.2M + 12 months to build.

  • With TDaaS: Delivered in 5 months for $350,000, plus ongoing support.

  • Result: ROI achieved in 8 months, 22% increase in operational efficiency.

 

Conclusion

The economics of TDaaS make it one of the most financially viable paths for SMBs to scale their technology capabilities. It delivers high-performance teams at a fraction of the cost—without sacrificing quality, speed, or security.

For SMBs competing in industries where margins are tight and innovation cycles are fast, TDaaS isn’t just a cost-saving measure—it’s a competitive advantage.

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