The Real Cost of Outsourced IT Support and Services
Posted on April 12, 2022
6 mins to read
Let’s face it, in-house IT costs can leave you with little money, inexperienced professionals, and limited resources. That’s why we’re here to talk to you about the cost of outsourced IT. As a successful Managed IT Service Provider, we know it’s important to put the client’s needs first, especially their financial requirements. That’s why we make a point to offer affordable outsourced help desk pricing and Managed IT Services. For your leisure, we’re going to discuss the average costs of IT support services, monthly contract support pricing, and how much IT sourcing costs.
Hiring your own IT team is not only costly, but it can also be very constricting. Leaving you limited to the resources and skill-set of the team you selected. That’s why we recommend a monthly support contract with an outsourced IT company.
Outsourced IT outcomes…
Cost of Outsourced IT Support
Outsourcing IT Service costs can vary greatly depending on organization size, management requirements, and what services you’ll be using regularly. Finding out which one is right for you is based solely on your needs and business functions. Before we get down to complex compensation models, let’s cover the basics.
What are In-House IT Services?
An in-house IT service occurs when you hire your own staff of trained technical professionals to work on your security and other technical requirements within your facility. This can be costly because you’re not just paying for the IT services themselves. You’re also paying for all of the required tools, knowledge, and staff.
Hiring your own IT team is not only costly, but it can also be very constricting. Leaving you limited to the resources and skill-set of the team you selected. That’s why we recommend a monthly support contract with an outsourced IT company.
What are Outsourced IT Services?
Outsourced IT services are beneficial for so many reasons. You do not have to pay for your own in-house IT staff, equipment, or expertise. This leaves you with unlimited favorable IT and cybersecurity outcomes. With Klik Solutions, you can even choose your coverage. Our options include:- Completely outsourced IT. With fully remote solutions, all you’ll be paying for are the features you need when you need them. You won’t have to manage any on-site employees and all technical functions will be handled by our staff. This includes troubleshoots, security tests, backups, updates, and more. Instead of an employee, we’ll be your strategic IT partner or monthly support contract.
- Co-managed technical solutions. We know how difficult it can be to let go of the security of an in-house team. So, we provide co-managed technical solutions that allow you to get the best of both worlds. Keep the perks of your in-house team and get the additional expertise you require at a supplemental price.
What are the Cost Comparisons Between In-House and Outsourced Agencies?
As mentioned earlier, IT support can vary because of wide-ranging scopes and features. Fortunately, we are still able to provide you with a basic outline to give you a better grasp on outsourcing IT service prices. Because third-party managed solutions are so versatile and plentiful, they can sometimes come with additional outsourcing fees. But here is the general outline of remote MSP (Managed Service Provider) costs:- Services and Costs of Outsourced IT Solutions. For a basic MSP with 50-75 employees, you are looking at about a $60,000-$84,000 budget. Remember, this includes extensive IT expertise, endless resources, and the possibility of add-on services. For a more advanced Managed Service Provider package with 75-125 employees, the estimated cost is closer to $96,000-$145,000.
- Services and Costs of In-House Technical Solutions. Because you have to pay to hire, buy equipment, and cover unexpected incidences, in-house IT is considerably more expensive. For a basic on-site crew of 1 technical manager and one junior technician, your costs are projected to be around $95,000-$155,000. Unfortunately, that’s without covering unforeseen incidents. A more advanced crew with 1 IT manager or director, plus a junior IT assistant, will run you about $155,000-$270,000. Again, that is a price without unexpected cost projections.
Outsourced IT vs In-house IT
To give you a better idea of each service, here are the primary features you’ll receive with both:- A fully-staffed IT help desk that has 24x7x365 availability for you, your employees, and end-users.
- Regularly scheduled strategic planning consultations and system maintenance.
- Only receive low monthly bills of $80-$150 each month on a per-use basis. Meaning, the price varies based on required resources.
- With an MSP, you have the possibility of gaining complete hardware maintenance and coverage for unexpected costs.
- No help-desk is available and you must rely on a small task force to complete everyday IT activities and additional incidents.
- Because staffing is limited, your employees will be overworked and have little time to utilize end-user troubleshooting features.
- Two in-house employees can cost over $155,000, plus benefits, leaving you with little help and lots of worries.
- Don’t forget about basic human error. If hardware is damaged by an employee or anything else, you’re financially responsible.
How to Tell When You’re Paying Too Much for Your Outsourced Services
At Klik Solutions, we believe in full transparency. Unfortunately, not all companies do. So we want to give you some tips and tricks to avoid getting taken advantage of by other MSP companies. Your service provider should be working with you non-stop to make sure you’re avoiding unnecessary technical fees. They should also be striving to help you reach your goals without overcharging you for excess features. If you feel like you’re being ripped off, you probably are. So contact your MSP and see exactly what services and additional fees you’re paying for. Also consider contacting other IT companies, like Klik Solutions, to see if they’re more in your price range. Are you receiving advisory services? Because you should be. Your advisor should be creating business reviews that allow for the implementation of an effective strategy for your future IT needs and costs. If this doesn’t occur, you’ll end up paying far more money than you need to. The lack of those two aspects can mean that you are paying for far more than you are actually receiving. Ensure that your MSP is providing consistent costs, results, and level of service. If they aren’t, call us.How to Properly Budget Your MSP Services
Many companies prefer to go without IT services because they believe they don’t have the finances to cover them. Luckily, this isn’t true. If you budget properly and ensure you are only paying for the services you need, they are more than affordable. Outsourced IT can even save you a few bucks a month or thousands in a catastrophe situation. Here are some financial tips that’ll guarantee you acquire the Remote IT services you need:- Avoid hourly block fees. As mentioned before, not all Managed Service Providers are as honest as Klik Solutions. Many lower-end providers will charge you for a certain number of hours a month. This makes you believe you are only paying for the time you need. But in reality, they are up charging you every chance they get when you go over the monthly minimum.
- Steer clear of flat fees. Beware of companies that offer unlimited services for a fixed amount every month. For example “We can give you endless support for only $800 a month”. Ploys like these insinuate that all costs are covered. Once the services commence, you’ll realize that delivery fees, urgent responses, and on-site support are all extra.
- Keep away from fee structures that aren’t “Per-user/Per-month”. All well-respected outsourced IT specialists will offer you per-user/per-month IT plans. This is because these plans ensure that the user is covered in all instances at no extra cost to you. From technical support to security monitoring, you’re covered at no extra cost.
