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Outsourcing IT Costs

Cost control is a constant challenge for business leaders. Whether the economy is booming or not, leaders are always exploring ways to lower costs and manage the bottom line.

Outsourcing information technology management is one of the many ways for companies to control ongoing operational costs. As companies grow, IT is often managed internally as a part-time function, and the do-it-yourself approach can usually work for a while. 

A report from Datto indicates that roughly 70% of small companies manage their IT internally. Invariably, however, a part-time IT resource in a growing company will become overwhelmed. 

In these situations, company leadership will usually hire a dedicated IT project manager. Unfortunately, staffing a dedicated IT resource is difficult and costly, especially since IT skills are in short supply in today’s economy.

 Outsourcing IT costs is a better option for many growing companies that can generate cost savings. However, most leaders are unsure about what those costs would be and what they would cover. In this article, we will explore the costs and benefits of outsourcing an IT department.

 

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A Closer Look at the Costs of Outsourcing IT

First, let’s explore outsourcing IT costs. Most companies turn to a managed service provider (MSP). Most MSPs specialize in complete outsourced IT services. The MSP will usually handle everything for the client while helping them budget for outsourced IT services. 

In this scenario, the MSP serves as the single point of contact for all things IT, including:

  • Technical support
  • Help desk services
  • Strategic consulting
  • Cybersecurity services
  • Proactive maintenance
  • Technology procurement
  • Ongoing system monitoring
  • Deployment and configuration

Most MSPs price their services on a per user per month basis. Most commonly, all the related service costs and software tools for employees are bundled into a single, all-in monthly price. 

In other cases, there may be a discrete monthly charge per employee for the managed IT service, along with a monthly charge per employee for all the different software-as-a-service (SaaS) tools that are required. Either way, the main cost driver in the MSP pricing model is the number of employees multiplied by the monthly service and software costs per employee.

MSP pricing delivers predictable IT outsourcing services costs. Clients benefit from an all-in price per employee, which simplifies budgeting and forecasting. For high-growth companies in a hiring mode, outsourced IT becomes a predictable cost per employee. 

By relying on IT outsourcing companies, clients avoid the risks and complexities of finding, hiring, and managing an internal IT resource. What’s more, an MSP will have a much broader technical bench than a single, internal IT person. 

With the high stakes in today’s cybersecurity landscape, it pays big dividends to work with outside experts who have broad expertise and can stay up-to-date on the latest cybersecurity trends, tools, and technologies.

There are other IT costs to consider as well. Hardware, infrastructure, and specialized software costs don’t go away just because a company works with an MSP. However, MSPs relieve a huge burden from their clients, since they are experts in IT procurement and vendor management.

MSPs help companies procure the right technology with the right features at a reduced cost if they have partnerships with prominent technology vendors. Moreover, with today’s supply chain constraints, MSPs are experts in helping find and source equipment when supplies are tight.

IT Outsourcing Costs

The 5 Most Important Benefits of Outsourcing Your IT

1. Focus on Core Business Needs

By outsourcing IT management, organizations can focus on their core business. Technology is vital in today’s economy, but sticking to your core competency is even more important. 

Whether your organization develops lifesaving medicines, manufactures products, delivers financial services, or provides any other sort of service, focusing on your core business pays big dividends. Everything else can and should be outsourced.

2. Enhanced Cybersecurity

Defending against cyber criminals is a full-time job. If companies let their guard down for just a minute, cyber-attacks can result in crippling downtime, financial losses, or big insurance claims. Leading MSPs make cybersecurity their top priority. 

An MSP will have broad technical expertise and be able to invest in training and technology to raise the bar on cybersecurity and effectively defend their clients. 

3. Superior Service and Support

MSPs deliver fast and effective help desk and technical support to their clients. Unlike an overworked internal resource, MSPs have a full technical team that works around the clock to answer inbound support calls and requests and quickly resolve user technical challenges. 

When an organization partners with an MSP you gain access to a team of experts, while still being able to control IT help desk outsourcing costs.

4. Higher Productivity and Employee Satisfaction

In today’s fast-moving technology landscape, organizations need a partner to help them drive innovation and technology modernization. 

MSPs help their clients migrate to the cloud, modernize their SaaS and software tools, and make employees more efficient in their work. Higher productivity means more output per employee and a more confident and satisfied workforce.

5. Reduced Overall Cost of IT

Working with an MSP helps organizations reduce and control IT expenses, while maximizing their technology spend. At the end of the day, it is all about ROI. 

For most growing organizations, outsourcing is the best option to control costs, while benefiting from professional service and support.

 

 

Learn the Costs and Benefits of Outsourcing Your IT Department

Gain insight into the costs of outsourcing IT by partnering with NENS.

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Need More Information About IT Outsourcing Costs? NENS Can Help

In summary, the costs of outsourcing IT can be highly beneficial to your business. Not only does outsourcing help you control costs and save money, it also gives you access to a reliable resource for technology management and support while reducing the burden on your in-house team.

At NENS, we help our clients maximize their IT spend with our reliable IT outsourcing service

We provide transparent, proactive support that helps you avoid the hidden costs of IT outsourcing while ensuring that the technologies that power your business processes are in capable hands.

We welcome inquiries from organizations that are interested in learning more about outsourcing IT costs and benefits. For more information, please contact us today to schedule a consultation.