Your business is successful and growing.
But as your company grows, so does the demand on your IT infrastructure. You start to experience more system downtime, longer wait times for support, and higher costs for resolving issues within your in-house team.
So, what’s the solution?
In this blog post, we’ll explore the cost of IT support for small to medium businesses and how they compare to costs associated with internally managed IT systems. We’ll also look at how investing in proactive support through a managed service provider (MSP) can help you avoid many of the costly reactive measures.
By understanding the cost of IT support, you can make informed decisions about how to best allocate your resources so that your business can continue to grow and prosper.
How Much Do Businesses Spend On IT Support Costs?
A key metric used to calculate IT spending levels is IT spending as a percentage of revenue. It is calculated by dividing the company’s IT operational costs (including depreciation) by total revenue.
Research shows that smaller businesses tend to experience a higher percentage of IT spending as a percentage of their revenue.
The average small business spends 6.9% of its revenue on information technology, while the average midsize business spends 4.1%. This includes ALL costs: salaries and benefits, services and support contracts, hardware,software, leases and subscriptions, cybersecurity. This percentage will probably increase, as information technology is deeply embedded in virtually every business.
While it’s hard to provide accurate estimates of IT support costs due to the varying needs of every organization,they most significant cost factor is people: salary and benefits for full time employees, and large budgets for consultants and outsourced providers. Full-time support technicians’ salaries can range from $80,000 to > $200,000. Add benefits, and having full time in-house IT can be a very costly proposition.
Outsourcing your IT requirements to an IT Managed Services Provider can reduce IT costs by 50% or more. The MSP model for IT support is now globally accepted and in the US, more common than in-house IT support. But Managed Services is a very different support model – we compare and contrast below.
Read on to learn more about how outsourcing can save you money in comparing the costs of an internal IT support team with those of an MSP!
And for good measure, check out these additional resources:
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Outsourcing IT Support Costs vs. In-House Teams
Outsourcing IT support provides a cost-effective solution for all businesses, big and small. But it is important to know that it is a different service model. Rather than having in-person or “desk-side” support, users generally interact with a remote support desk and technicians. Most MSPs can escalate their support to an onsite visit when needed. But most calls will be responded by remotely, by phone and remote control. The Managed Services model has proven wildly successful and has become a nearly standard approach for small and medium sized businesses. But for those businesses who want or need full-time desk-side presence, notwithstanding the high expense, the IT Managed Service model is not a good choice.
One of the advantages – or tradeoffs – of working with an MSP is that they have a wide range of skills and experience, and a deep bench of staff as well as technical depth in many areas. MSPs also typically provide recommendations, quotes, strategic direction, security, and projects as part of their standard contract. It is impossible to get all these services and expertise from a small IT department, let alone a single dedicated IT staff.
Instead of having to staff an IT department in-house, support and other services are provided remotely. Generally it does not include a full-time onsite presence. Normally, users and systems receive remote support, but if it is not effective, a tech will be deployed to go onsite.
This not only saves money on salary but also allows access to experts and quicker resolution times for any issues or changes needed, as they are available 24/7/365.
It also helps keep your existing cash flow under control by allowing you to pay for only what is needed and when it is needed, instead of paying large sums upfront or regular wages with no guarantee of usage or ROI.
Outsourcing IT support makes good fiscal sense and frees up employees to focus on other areas while still providing the highest quality technical support.
Check out this diagram to compare the cost savings offered by outsourced IT support:
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Managing IT Support Costs
SMB IT spending will grow 6.3% year-over-year in 2023, a rate similar to pre-pandemic levels. This indicates that with more and more businesses making the switch to remote environments, the need for optimal IT support and infrastructure is here to stay.
In outsourcing your managed IT support to a trusted provider like Power Consulting, you’ll experience the benefits of quality service at an affordable cost.
With years of experience helping businesses with IT, you can be rest assured that your team is in good hands with our:
- 24/7 IT support
- 40-55% reduction of IT issues after 3 months
- 4-hour emergency response time
- And much more
Talk to our team today to receive your free quote and learn more about how we can help you succeed!
