The Expected Benefits and Costs of Outsourced IT Services
Are you looking for smart ways to reduce your operational costs? Outsourced IT services can be one of the smartest decisions that could save your company loads of money in the long run. It also provides some companies with access to the IT strategic expertise that’s lacking in their current IT staff. Such help is especially vital when dealing with various operational changes.
But what should you be looking for in a potential service provider? For starters, you get to outsource all your tech-related enterprise concerns to a third-party specialist: the common term for such an expert in an MSP (Managed Service Provider).
They have flexible service terms that can meet even the most unique IT needs. Let’s have a look at some of the two main service options to get a better picture of the costs and expected benefits of outsourcing your IT services to such firms.
Fully Outsourced IT Services
Most people think that IT support services personnel need to physically available at a moment’s notices. However, technologies such as remote assistance applications have eliminated such a need. Common technical problems like unresponsive printers and misplaced passwords can be fixed from any location by a competent service provider. Your MSP is always a call away whenever you need on-site assistance for technical challenges that can’t be resolved remotely. Depending on your service contract, they can also show up weekly or as frequently as you need their services. Outsourced IT services make the best technical expertise more accessible and affordable. This can help in addressing the complex challenges of staying updated on technology while reducing the overhead costs.
- Advantages: You get 24/7 systems monitoring and a proactive response to any tech issues. This results in a faster resolution time that translates to less downtime and more productivity. It also provides a more cost-effective option when compared to hiring an entire in-house IT department or a break/fix service firm.
- Disadvantages: Fully outsourced IT services are only disadvantageous when you opt for a firm that doesn’t prioritize effective communication and dedication to customer services. This can lead to delays that can frustrate your company when you’re experiencing significant downtimes with core business applications or systems.
Co-Managed Outsourced IT Services
Adapting to the latest mobile app, CRM tools, cloud, and virtual computing technologies can enhance your companies productivity and bottom-line. However, such technologies need constant monitoring and maintenance, which can bog down your IT department
Outsourced IT service teams can bring in a lot of insight and skill that can bolster the efforts of your in-house IT department. Such a scheme also frees your IT staff so they can focus on providing the services and support your other employees need to stay focused on their jobs.
- Advantages: Co-managed IT services give your company access to the best of both worlds. Your IT department gets to outsource complex or repetitive tasks that take their focus away from their core business. Your company also retains more control over their core systems. And, you have a partner that can help you with a strategic approach to adapting to new technologies.
- Disadvantages: Sometimes, such a service model can duplicate roles within the organizations. This can lead to higher IT costs as you have both the IT department staff and consulting teams on your payroll.
Outsourced IT vs. Permanent IT Personnel
Permanent IT Personnel
According to Spiceworks, the average size of IT departments is 4 to 11 IT personnel for companies that have 50-500 employees. This can bring the average annual salary for multi-tier IT staff to over $150,000. And, there’s also flextime, overtime, medical covers, and other expenses.
The salaries may vary with the level of expertise. Your IT department wage bill may also increase as the company expands into other markets.
Such costs also don’t account for additional training, hardware replacements, and other contingency costs that may arise. Therefore, it’s hard to close on an average price since every company has a unique structure and IT needs.
Outsourced IT Services
The price of managed IT services often comes as the top concern for companies. Establishing an average cost is tricky because companies vary in size, so each has a unique set of IT needs.
Consequently, most companies opt to start with the most basic of packages and upgrade such options with additional features as their needs change. Average monthly subscription fees in Georgia range from $70 – $150 per month for each user, depending on the services your company requires.
This could bring the annual average cost of outsourced IT services to around $ 55,000 for organizations with 40+ employees. Your provider may also charge one-time fees for some on-site visits and strategic IT planning meetings.
But, It all costs way less than hiring a full time IT staff. And you can continue to take advantage of such services even as your company grows.
Key Budgetary Considerations to Make When Outsourcing IT Services
The best aspect of MSP services is its transparent billing practices. However, some providers can come up with shady justifications for inflated monthly bills. Some of these tricks include:
- Hourly rates – are ineffective service delivery and costing model. It may appear that you are paying less because you have control over the time a provider spends on your needs. However, such providers often charge additional fees for overtime.
- Prescribed flat rates sound like excellent ideas in principle. But, in reality, they often fail to account for on-site support, set up fees, and other essential support services.
So, what’s the best way forward when it comes to outsourced IT service billing structures? Well, the per-user monthly billing model is the best way to go.
Is your business in need of quality outsourced IT services? Look no further than 360 smart networks, Atlanta’s most reputable IT services provider. We are also located in Charlotte and have agents all over the southeast of the United States.
We’ve helped many companies across various industries with their IT services and are eager to assist your company to realize its goals through your core technology.