What is Outsourced IT Support and How Much Does It Cost?

As your business grows, you may choose to outsource many of the tasks that you need to perform to keep the business running smoothly, from your accounting to your marketing, IT support is no exception. Outsourced IT support is when you place your trust in an MSP (managed services provider) to handle all of your business’ IT operations. This can include IT infrastructure, cybersecurity, network monitoring, cloud migration, disaster recovery, and more so that your business could grow considerably without draining resources. 

We know you might be having second thoughts about outsourcing. It can be daunting especially if you don’t know where to get started. But outsourcing IT support offers a wide range of benefits for your business. First, it allows you to reduce your costs when fulfilling your manpower needs. Then, you don’t have to worry about paying wages and benefits as the provider will take care of that. Finally, IT support could help you manage functions like backup & disaster recovery, help desk or end-user support, data, and network security. 

If you have given it a thought and decided to give outsourcing a try, one question that’s probably in your mind right now is “How do I get started?”. Well, here is everything you need to know.

5 Signs You Need to Outsource IT Support

As your business grows, simply keeping up with the day-to-day management of today’s complex IT environment requires significant IT resources. As such, you need to be aware of the signs that indicate it is time to outsource your IT support. 

1. When the Number of Tickets Becomes Too Hot to Handle

One of the very first things that you need to consider when deciding whether or not to outsource is the flow of tickets itself. This problem can quickly start to snowball into becoming overwhelming and a burden for your team.

2. You Need 24/7 Support

No matter how good your in-house IT support team is, surely they wouldn’t want to work all day and night. If you want round-the-clock support, outsourcing your additional manpower requirements can give you peace of mind that things will keep running. 

3. Your IT Department Doesn’t Have the Capability

Modern IT projects often require experts and a robust team. If your in-house team does not have the capacity to handle such kinds of projects, outsourcing maybe your best option. Maintaining an in-house IT team can be costly, especially in the scope of today’s IT operations. 

4. Your Business is Vulnerable to Security Risks

Cybercrimes are abundant and more common than you’d think. If you are not implementing security measures, your business could become vulnerable to cybersecurity threats like identity theft or fraud. 

5. Your IT Staff isn’t Updated with their Training

To keep up with the changing times, your employees need to be updated with their skills and specialization. However, it can be a challenge to keep up with the numerous training programs available for your IT team. This could result in your team becoming ineffective in keeping up with the customer’s needs due to their lack of training. 

8 Benefits of Outsourced IT Support

There are plenty of reasons to invest in outsourced IT, but here are the top 8 benefits of letting an offshore team manage your IT support.

1. More Time to Focus on Your Business 

When you have Outsourced IT Support, you can focus your time and attention where it’s needed instead of trying to handle IT situations. There’s no need to occupy someone’s precious time by trying to keep your networks functioning.

2. Access to Professional Expertise

Most outsourcing companies provide access to knowledgeable IT pros who are ready and able to answer questions and provide solutions when needed.

3. Get IT Support Questions Answered Quickly

Experts provide real-time remote support in short order. No delay, no problem.

4. Reduce Security Risks

Offshore IT professionals know compliance standards and regulations and can implement security strategies to minimize risks associated with data and sensitive information.

5. Improve Employee Performance

Using Outsourced IT Support and dedicated IT help desk services equates to less downtime and fewer errors. The provider can keep an eye on issues, prevent them from getting worse and resolve them quickly. That leads to better overall performance.

6. Keep Technology Up-to-date

Things change quickly with IT. An outsourcing provider can keep being on top of things related to technology and software, saving you money and time.

7. Reduce IT Operational Costs

One of the most attractive benefits of having Outsourced IT Support is the savings it provides. Outsource companies help minimize the chance of costly network problems and IT-related downtime. You also know exactly what services you’re receiving and what you’ll be spending per employee/per month. Find out how much you could be saving with Booth & Partner’s Savings Calculator.

8. Maintain A Competitive Edge

Just because you have an up-and-coming business doesn’t mean you can’t compete with the big guys. A larger company may have access to in-house resources that SMEs may not enjoy. However, Outsourced IT Support can provide the same level of expertise a larger company benefits from at a more digestible price point.

How Much Does an In-House IT Team Usually Cost?

Keeping IT support in the office means paying salary and benefits for your employees as well as making sure that they have adequate office space and equipment. Not only that, you may need to pay for training and make sure that you have enough employees on hand to take care of vacations and sick days. The cost of maintaining an in-house IT team can add up quickly. That’s why outsourcing your IT services can often help you cut your overall IT costs, especially when compared to keeping up with an internal team.

At a minimum, any organization with more than 20 or 30 employees will require one “Tier 1” help desk technician to handle day-to-day troubleshooting, and one IT manager to handle larger administrative issues and business processes.

If we average out salaries, having just those two roles would range from about $150,000 to $200,000 per year, and that may not even include training, insurance, and other overhead costs for a team of two to fully operate and maintain a small-to-medium business IT infrastructure.

Of course, the number goes up as you continue to grow your business. Two people simply won’t be able to keep up with an office of 75+ employees in the long term which will inevitably make your overhead go up.

Scaling Your Business Without Breaking the Bank

Comparing prices is the first thing on a business’s agenda when selecting an outsourced service. Contrary to popular belief, outsourced IT services/support are not a commodity and their price varies from market to market. One size does not fit all, and neither does one cost. The cost of an IT service provider depends on the level and variety of services it offers; however, not all providers employ the same billing model. When comparing costs, it comes down to the value the IT service provider brings to your organization and the profits it may help you generate.

In today’s market, the average IT support client pays between $1500 – $2000 per employee/per month, depending on the service package chosen for the organization, and the number of employees. In an average 50-person organization with no on-site servers, and using an average cost of $1700 per employee, at 5 employees, this would cost around $102,000 per year.

There may be additional one-time charges for emergency on-site visits or strategic planning sessions, but the savings compared to an overstretched IT team of two are massive. Moving forward, the only additional cost of future growth in the company would be per-employee, plus of course, any new projects that need to be implemented as the years go by.

So, Should You Outsource IT Support?

Many business owners find that outsourcing their IT services is a highly effective way to cut costs and make it easier for them to manage their IT needs. Should you, specifically, outsource your IT services? Ask yourself these questions:

• • • Do you need to cut IT costs?
    • Is your existing team failing to provide the support your organization needs in order to keep running smoothly?
    • Are you struggling to keep employees on your existing IT team?

If you answered “yes” to any of those questions, you may find that outsourcing your IT services is the right decision for your business. If you want to learn more, then head on over to our savings calculator where you can get a specific number on just how much you can save by choosing Booth & Partners.