One of the benefits of outsourcing IT services is reduced cost. This is because outsourcing IT converts IT costs into variable costs. So, in return, you can budget for the service effectively.
You only pay for what you get when you need it. This is something you cannot get by entrusting your IT to an in-house team.
But how much does it cost to outsource IT support? Check out this guide for more information on the same.
What’s the Cost of Outsourcing IT Support?
The IT support providers use different pricing models, so you can choose one that meets your budget. However, there are several standard models: monitoring, per-device, per-user, and ad-hoc.
Monitoring
The first IT pricing model is monitoring only. Under this structure, the IT support provider only offers limited network monitoring services. The experts evaluate your network and notify you when something seems off.
The services feature patch management and backup monitoring, to mention a few of the benefits to expect. They offer all these at a fixed fee, so you don’t have to worry about paying extra, regardless of the number of network errors detected within the agreed period.
Per-Device
In the per-device model, you pay a flat fee for each device that needs monitoring. The total cost will be based on the number of computers on your premises.
Per-User
The structure works more like the per-device model. But in this case, the service provider charges a flat fee for all the support you may need for your network based on the number of users.
Per-user is the best model if you’re looking to save cost. Keep in mind that one user may have many devices, but they all count as one. In addition, as your business expands and increases the number of employees, you have to scale up on the IT support cost.
Ad-Hoc
Under this model, you only pay when you require IT support. Therefore, you don’t pay a continuous fee for IT services. Instead, you contact a provider when an issue arises and pay after services.
While this is an ideal option for businesses with financial constraints, it can be inconvenient if a significant issue arises unexpectedly. In addition, the cost can be higher than what you were hoping to save.
Most IT support companies use the flat fee model and charge anywhere between $100 and $200 per month. The cost is calculated per user, meaning you don’t have to mind how many devices your company has in total.
Note that you get what you pay for. The higher the price, the higher the chances of getting quality business IT support. So it’d be best to pay high to providers with an advanced line of business and customer-facing applications than pay less to get essential services.
What Determines IT Support Cost?
The cost of IT services is, in most cases, dependent on the operational maturity level of the provider. Thus, the price is a reflection of the value you’re likely to get from the services.
The prices depend on how well the IT company functions. If the provider is advertising low costs, the chances are that you’ll get low-level services.
Cheap outsourced IT support may lack back-end processes, which are crucial in ensuring the stability and longevity of the operations. Expensive IT support, on the other hand, is likely to exhibit high growth rates.
The other price determinant is the confidence of the service provider. If the IT company is confident in the services they deliver, they are likely to charge you more.
However, it’s advisable to let other aspects such as the experience and reputation of the support provider guide you in your decision.
Are You Paying Too Much?
The primary aim of outsourcing IT support is to save money. Therefore, the right provider should work with you to reduce any unexpected IT expenses and ensure that you get the value for your money.
Besides monitoring your network, the IT support provider should offer advisory services and guide you on minimizing future expenses. Moreover, they should provide regular business reviews to assess how their performance is impacting your IT environment.
If your IT provider is reluctant and isn’t offering all the mentioned services, you’re probably paying more than you should.
The services should impact your business positively. Check if you’re registering an increase in productivity and whether cases of downtime have reduced overtime after hiring the IT company.
The provider should offer consistent results while maintaining a uniform fee to help your business grow.
Budgeting for IT Support
Reports show that small businesses spend about 6.9% of their revenue on IT. IT is a broad concept, and you might be wondering how much to budget for support only.
You should consider:
- If you prefer fixed or variable cost
- How much you spend on an in-house IT support team
- If you want the IT support provider to handle software licensing
- How much IT work you wish to be responsible for
After answering the above statements, you’ll be better positioned to select an IT support model that’s right for your business.
Before developing an IT support budget, you should understand if any hidden costs could drain your business. For instance, one hour of downtime due to IT issues will cost you over $100,000.
Therefore, it would be better to pay a high price for high-quality IT support that will eliminate any cases of downtime than experiencing the related losses.
If you feel like you’re spending too much on your IT budget, check if what you pay is in line with other businesses in your niche and if there’s anything you can do to minimize the costs.
Value for Money IT Support Services
Now that you understand how much it costs to outsource IT support, you can quickly tell when you’re paying too much or little for the services. Take your time to compare the IT support prices by different providers before settling with the most reasonable.
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