Cost of IT Support

How to Calculate the Costs (and Advantages) of Outsourced IT Support

IT support is critical to any business. Many times, SMBs seek out outsourced IT support because it makes more fiscal sense and offers a variety of benefits. However, you may be wondering how to calculate the cost of outsourced IT. Cost is, of course, a significant factor in what services you choose, but you also have to consider the quality and breadth of the services offered. Let’s look at how to evaluate the cost of outsourced IT as well as the additional advantages it brings to a business.

IT outsourcing isn’t a commodity

You may be under the impression that managed services from a third-party are a commodity. But they’re actually not, which means pricing can vary greatly. However, they could be significantly less than hiring more headcount. IT techs in the US have an average salary of $73,962.

If you’re budget conscious then outsourced IT could be a great model for your business. Your cost will depend on the services you choose. From help desk support to vulnerability management, there are many options. So, one of the first things you should do when calculating costs is to nail down what services you most need.

Outsourcing IT support is common

Approximately 37% of small businesses outsource IT support, according to a recent report. These numbers mean that many companies are taking advantage of the benefits of outsourcing and have found that the investment in doing so doesn’t derail them from other projects. One of the biggest reasons for outsourcing is cost reduction. So, how do you determine the right cost?

Determining the cost of outsourced IT

Once you have documented the expectations of IT support, you can begin to calculate the cost of outsourced IT. Here are some crucial elements in doing so:

Calculate the avoidable in-house costs

Include all the costs of in-house IT support, including salaries, equipment, software, and more. Look at what you’d spend in the next year if you kept support in-house. That’s a good baseline to help you compare managed services costs.

Determine the total outsourcing cost

Now, it’s time to put the numbers together for outsourcing. This will include the monthly retainer you’ll pay as well as any upfront costs. This may also include transitional costs for what it would take to turn your IT support over to a third-party.

Measure the difference

You have two numbers now. In most cases, the in-house costs will be substantially more than outsourcing. This is where you’ll find the true savings from IT outsourcing.

Outsourcing can do more than just reduce your costs; check out these benefits.

Key advantages to using outsourced IT support

If you are considering switching to IT managed services, your organization can reap many benefits. If you want to grow and scale your business properly, you’ll find that outsourced IT support can help you get there. Here are some key benefits to making the switch:

Improve productivity

Technical issues can torpedo worker productivity. Managed IT services can help mitigate downtime as well as speed up your network. A strong, robust technology infrastructure can enhance productivity.

Allow in-house IT roles to focus on bigger projects

If your in-house IT team is currently putting out fires every day, they don’t have time to work on specific projects that can fuel your growth. Give them a break from the daily grind of keeping your business running so they can innovate.

Manage risk better

Cybersecurity is vital to your company. The threats are real, but you can minimize them by working with a third-party provider. With threat management, you can be proactive in your approach to security instead of simply reacting after something occurs.

Learn more about outsourced IT support and how it can benefit your company by contacting us today.