Outsourced IT: Breaking Down The Support Costs

IT is a key asset that companies of all sizes simply cannot ignore. However, not every organization has the capacity or desire to manage its IT services in-house. This is where outsourced IT comes into play. In this article, we dive into what it means to outsource IT services, comparing its cost to running an in-house model and discussing the factors that influence its pricing. We also help you understand the various service options available and the elements that impact outsourced IT support costs.

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What Is Outsourced IT Support?

Outsourced IT support involves hiring an external service provider to manage an organization’s information technology (IT) systems and services. This outsourcing can encompass a wide range of functions, including:

Helpdesk support: Providing end-user assistance for hardware and software issues
Infrastructure management: Managing servers, networks, and data storage on-premises or in the cloud
Cybersecurity services: Monitoring for threats, managing firewalls, and implementing security protocols
Data backup and recovery: Ensuring data is regularly backed up and can be restored in case of loss
Application support and management: Assisting with software installations, updates, and troubleshooting
Hardware support and maintenance: Repairing or replacing faulty equipment
Consulting and strategy: Advising you on IT strategies, including upgrades and new technology implementations

IT Service Options

When looking to outsource IT services, companies have a range of options to choose from based on their needs and budgets. Here are some of the main types of IT service packages:

Basic IT

Basic or entry-level services cover the core IT needs of small businesses. This usually includes:

Basic helpdesk support: Answering employee tech questions by phone or email
Monitoring and maintenance: Checking systems daily and applying updates/patches
Data backups: Regularly backing up files and systems
Basic security: Antivirus software, firewalls, and spam filtering

The advantage of basic IT services is the low monthly cost. However, coverage is limited, and extra fees apply for project work. It’s a good option for very small businesses with simple needs.

Mid-Range IT

Mid-range IT services provide expanded coverage for small to medium-sized businesses. Typical services include:

Helpdesk support with shorter response times
Proactive network monitoring and preventative maintenance
System admin services, including server, workstation, network, and backup management
Enhanced security with multi-layered threat protection and detection
Some coverage for IT projects and upgrades

Mid-range plans cost more than essential services but are still very cost-effective compared to hiring in-house staff. The expanded coverage reduces gaps that result in extra fees down the road.

High-End IT

High-end managed IT services deliver comprehensive support with advanced features. This usually consists of:

24/7 helpdesk with response times of 15 minutes or less
Constant network monitoring with automated alerts
Monthly strategy meetings to plan IT priorities and projects
Security assessments and advanced threat protection
Coverage for IT projects and new technology implementation

High-end plans provide complete outsourced IT capabilities tailored to larger companies. The outsourced IT support costs are higher, but it offers superior support, strategic guidance, and inclusion of new IT projects.

SBT Partners offers our clients the highest level of IT support. Browse our services today and learn why we’re a modern MSP.

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In-House vs. Outsourced IT Pricing

When weighing the decision between in-house IT staff versus outsourced services, cost is a major factor. Here’s an overview of how the costs stack up:

In-House IT Costs

Salaries and benefits for IT personnel
Costs for each user per month
Training expenses to develop and retain skilled staff
Costs to purchase and maintain IT infrastructure
Productivity losses during downtime or delays
Very high overtime costs

Staffing an internal IT department requires major upfront and ongoing costs. Smaller companies with under 100 employees often cannot justify the overhead.

Outsourced IT Costs

Fixed monthly fee tailored to your needs and scale
No large capital investments in infrastructure
No HR costs for technical staff
24/7 availability with unlimited support
Easy to scale services up and down

Outsourced models provide predictable costs without huge investments. Services can scale to match changing business needs. For growing companies, outsourcing offers better flexibility.

Outsourced IT delivers better value for most small and mid-sized businesses. The overall costs are lower with less time and attention required from management.

Pricing Managed IT Services

One of the most important factors when considering outsourced IT services is understanding how pricing models work. Managed service providers (MSPs) use a variety of pricing structures depending on the types and complexity of services being offered. Understanding these key factors will help you select the right partner for your business’s technology needs.

Some key factors that influence managed IT service pricing include:

The Complexity of Your IT Network

The size and complexity of your organization’s infrastructure is a major cost driver. MSPs consider factors like:

Number of users and devices
Types of hardware and software in place
Whether systems are on-premises or cloud-based
If niche technologies like IoT devices are used

The more complex your technology stack, the more time and resources will be required to manage it. Most MSPs will audit your infrastructure to develop custom pricing.

The Types of Services You Need

Managed IT encompasses everything from basic monitoring and device management to custom software development. The specific offerings you require will impact overall pricing.

An MSP that only handles services like help desk tickets and basic system monitoring will typically cost much less than a partner providing full-scale development and engineering resources. Define the IT functions you need managed or supplemented to get accurate pricing.

Your Company’s Size

In addition to network complexity, the size of your organization also impacts managed service pricing. Larger companies require a greater total effort from the service provider related to:

Support staff and administrators
Service response time and workforce bandwidth
Number of devices and users on the system
Economies of scale, allowing MSPs to offer better rates for bigger customers.

Still, more resources are consumed, so base fees are typically higher for large enterprises versus SMBs.

Pricing plans are usually tiered by user counts. Be sure your pricing aligns with your current size as well as expected growth.

SBT Partners: Managed IT Services for Charlotte With a Modern Approach

SBT Partners understands that outsourced IT support costs can significantly impact your budget. That’s why we take pride in offering leading solutions under a fixed monthly utility bill. Partnering with us means you never have to worry about per user managed service costs impacting your company’s expenses.

Outsourced IT: Breaking Down The Support Costs

What Is Outsourced IT Support?

IT Service Options

Basic IT

Mid-Range IT

High-End IT

In-House vs. Outsourced IT Pricing

In-House IT Costs

Outsourced IT Costs

Pricing Managed IT Services

The Complexity of Your IT Network

The Types of Services You Need

Your Company’s Size

SBT Partners: Managed IT Services for Charlotte With a Modern Approach

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