Outsourced IT support is one of the most useful resources that a business can procure. These services offer flexibility, scalability, and a wide variety of helpful services. In many cases, outsourced IT support is also cheaper than the maintenance of an in-house team.
A lot of people have questions about the pricing of outsourced IT. You see, there isn’t a single flat rate that applies to everyone. Pricing is based on your needs and usage, so a larger organization will naturally pay more than a smaller one. Let’s talk about the real costs of outsourced IT so that you can gain a greater understanding of how it all works.
Most Companies Charge By The User
When you make use of an outsourced IT support company, you will also be utilizing some of its tech resources. Also, providing support to a larger organization with more people requires more time and labor. For these reasons, IT outsourcing companies have to charge you by the user. You are basically renting their time and resources, so this model makes a lot of sense.
Some providers will use different models, however. They might charge according to the number of professionals assigned to your company, or they might even charge by the hour. However, we would strongly advise that you avoid such providers. It is very hard for you, as the client, to verify how many people are working on your account or how many hours they have worked. These other payment systems provide an opportunity for overcharging and surprise costs, and we are quite sure you don’t want those. A flat monthly fee is much more transparent and predictable.
How Much Can You Expect To Pay?
So, how much do they normally charge? Well, the per-user rate will vary from one provider to another. They range from $85-$250 per user, so you should make sure that your chosen company gives you a price that falls within this range. On that subject, we should tell you that the cheapest option is not always the best. In many cases, substandard IT companies will offer very low rates, but you probably won’t get the same quality of service. “You get what you pay for”, as the old saying goes.
So, let’s crunch some numbers and see how much you can reasonably expect to pay. First of all, we need a reliable average figure. According to Statista, the average company spends about $123.60 per user. So, let’s say your company has 50 employees that use the network resources. That will add up to $6,180 per month. If you have 100 employees using those resources, that will add up to $12,360 per month.
Not All Employees Need Access
If these figures seem high, you should understand that not all employees require access to outsourced IT resources. In fact, the only employees who truly need that access are your IT employees. If an employee needs help, they can go directly to your in-house IT staff, who can then request help from the outsourced advisors if necessary. What we are saying is this: If you are on a tight budget, you can save some money by limiting those resources expenditures to those workers who really need them.
How Much Do In-House Employees Cost?
Now that we have given you a rough idea of how much outsourced IT will cost, let’s consider the alternative. You could just go with a completely in-house approach, but that means paying a relatively high salary to all your IT employees. Also, if they are operating without help, your IT department would probably need to be a lot bigger.
Again, these costs will vary a lot, depending on the size and needs of your organization. However, as before, we can get a rough estimate based on individual figures. So, how much does the average IT worker make in salary costs? According to this website, the average pay for a corporate IT systems analyst ranges between $67,944 and $83,022 per year. Bear in mind that these numbers are not consistent in all localities, so they might not be quite the same in your area.
So, we take that yearly salary and divide it by 12 to calculate a per-month cost. This gives us a monthly expense range of $5,662 to $6,918. If you have 50 employees, that becomes a range of $283,100 to $345,900. As you can see, this is a lot more expensive than paying a monthly bill for outsourced services. The monthly salary cost for a single in-house employee is more than you would pay an outsourced company in monthly fees.
Should I Get Rid Of My In-House Team?
In most cases, the answer is no. There are some services that are better rendered in person. For instance, if you have a system crash that makes a particular employee unable to do their job, you need to fix that immediately. That is an instance in which you need an on-site expert to quickly assess and correct the problem. No matter how good your outsourced IT company might be, an on-site technician will usually offer a quicker solution.
For these reasons and more, a lot of companies opt for a “co-managed” IT plan, in which responsibilities are shared between in-house staff and outsourced staff. This gives the company a lot more flexibility, allowing them to place technicians in the positions where they will be most effective. In fact, an outsourced team can actually help your in-house team to be more effective. By handling all the routine maintenance and monitoring tasks, the outsourced employees can give your in-house employees more time to focus on important things like on-site problem-solving and systems optimization.
What Other Factors Can Affect IT Costs?
It’s not just about the number of users on the network, although that is the most important pricing factor. There are some other factors that can affect your monthly rate, so let’s cover some of those.
Extent Of Security Needed
Cybersecurity is one of the main benefits of outsourced IT. An external company provides an extra layer of verification and screening, as well as another chance to detect a problem early. Many cyber-attacks can be stopped in their tracks, but only if someone detects them quickly. The more qualified eyes you have on the network, the better your chances of catching the problem before it does any real damage. In any case, some companies need a much higher level of security. If your company has a lot of highly valuable assets, or if it deals with a lot of confidential/classified information, you will definitely have to pay more for the extra security that you require.
Location Of Assigned IT Technicians
Due to economic factors, workers from less developed countries tend to be a lot cheaper. A dollar will go a lot farther in one of those countries, so their services can be acquired more cheaply. However, there can be difficulties that arise if those technicians have a poor command of your language. In general, the most expensive techs are those within the continental U.S. and Western Europe. Latin America is a little cheaper, followed by Eastern Europe, then South Asia, which tends to be the cheapest. It will be up to you to balance price and quality and decide which of these choices is the best for your company.
Equipment Fees
Depending on what kind of plan you get, you might be renting some IT equipment from your provider. This will normally add a little bit to the total monthly bill. For instance, if you want your own dedicated company server, most IT providers can supply that easily. Better routers and cables can provide faster access to the network, increasing productivity. Likewise, there are many other ways in which better technology resources can boost productivity.
Obviously, not everyone needs to rent equipment, but IT providers can usually provide access to better tech resources at an affordable price. Thus, you will just have to determine if that equipment will benefit your company enough to be worth the extra cost.
Use Of Cloud Resources
A lot of businesses are using the cloud these days, and that is because it provides a convenient way to access the same resources across many devices and locations. It is especially good for remote workers and employees who do a lot of traveling. However, not all companies need to utilize the cloud, and some may prefer to set up their own cloud network in-house. If you choose to add a cloud computing plan to your managed IT account, it will certainly add a little bit to the price.
Conclusion
Perhaps now you can see why there is so much confusion on this subject. Prices will be different for every company that employs outsourced IT because no two companies are alike in terms of scope and needs. However, we hope that we have at least given you a rough idea of how much you can expect to pay for IT services of either type.
If you have evaluated all of the information above and decided to employ an outsourced IT company, you can call PCH Technologies at (856) 754-7500. We offer highly flexible plans and reasonable pricing for companies of all sizes. For those who need more information, our helpful employees are always willing to give you a preliminary estimate based on the size and nature of your company, so it isn’t hard to get a more exact figure. We look forward to hearing from you soon.