Many enterprises want to know how much managed IT services cost. At this point, most service providers respond with the somewhat unhelpful reply of “it depends on…….” However, in this post, we avoid vague responses. Instead, we provide you with real figures, showing you why so many enterprises outsource their technology support to us, as their trusted partner.
It’s been a strange couple of years for us all, both professionally and personally; but one thing for sure is the level of tech adoption has never been higher, which has led many organisations to look at how it supports its teams, when it comes to their technology needs.
In an increasingly competitive business arena, regardless of the sector you work in, you find that minimising expenses, boosting revenues and streamlining business processes are more and more crucial. In this task, companies are often faced with a critical question — Is it better to employ an in-house IT team or enter a contract for the services of a managed service provider (MSP), such as Technology Support 24/7, to address the organisation’s technology needs?
The question of managed services vs in-house is not a new one. With the rise of MSPs, firms now have a wide array of options to choose from when looking to shortlist a company that aligns with their requirements, not just in terms of Tech support, but in culture as well. BUT how does an MSP compare to inhouse provision? What are the pros and cons which should be fully evaluated?
What Are The Costs Of Internal Versus External Support Teams?
If, for example, your company has 65-135 users, you’ll ideally need the following in-house resources to operate your network, fully supported by a capable team:
- Three full-time-equivalent (FTE) IT professionals, to provide support throughout the year
- 1st, 2nd and 3rd line support for escalating queries and troubleshooting with the right expertise on tap
- Office space for at least three workers and associated equipment
- HR support and Line Management
- NI contributions, as full time members of staff (FTE)
Using this information, we can estimate the annual cost of maintaining an internal IT team.
The average IT professional salary in the UK is £39,000 per year for junior to mid-level, £22,000-£45,000, rising to over £90,000 for a senior IT professional with line manager experience, implying a total annual labour cost of some £168,000 per annum. Accounting for Employer national insurance contributions on a those salaries total NI contributions of £18,249 per year. HR costs are around £1,000 per employee, per year, implying a total of £3,000 for all three IT professionals. The average cost of a workstation/ desk in offices around the UK is approximately £250 per year, implying a total cost of £750 per year for three professionals. Seen as £190,000, with the appropriate IT hardware and other equipment to support their teams, this brings the total to approximately £200,000 per annum.
Therefore, the cost of providing 1st, 2nd and 3rd line support, as required, based on 135 users is around £124 per month per user, a considerable financial commitment.
Of course, smaller businesses, SMEs, with say 25-65 users have an even more difficult decision, in that, if their budget might only stretch to say one FTE, for their IT support, what do they do, if that member of staff becomes ill, goes on holiday or needs more technical expertise for a problem, which they might not have knowledge of.
As you might expect, the cost of working with an external support team is considerably less, through the power of shared resource – one of the major benefits of outsourcing, but not forgetting the other important benefits, that we will now show.
What Are The Benefits Of External Versus Internal Support Staff?
As with any service provider, choosing the right partner, for your outsourced IT services is incredibly important, this might be driven by price, service levels or specialism; but one thing is consistent, MSPs, Managed Service Providers can offer fantastic value for money and often a superior breadth and level of service for your business and teams.
Your MSP support team can offer benefits such as:
- Reduced costs of support, through use of a shared service
- Shared economies of scales, improving buying power and driving costings down
- Consistent and reliable service levels
- Proactive Reporting on your network activity
- Proactive Remote monitoring and maintenance
- Best practice shared throughout with the latest solutions and services employed
- Access to a number of 1st, 2nd and 3rd line support engineers
- Highly trained, certified engineers, with experience of the best solutions available
By sharing the cost of the team supporting your business, through a shared service, with other similar clients, the cost of that support is lowered considerably, offering all the benefits of an internal support team, without the negatives, often with many benefits in excess of it, but at a cost that is simply not achievable, without utilising an MSP. Here, we can see the cost of between £20-30 per user, for proactive support for your teams. Baring in mind of course, that there are costs for applications, such as Microsoft 365 or cybersecurity protection, such as that offered by Sophos.
Of course, some businesses might still deem an internal tech support team to be the right solution for their business, which can be driven by other factors, rather than purely costings, even here though, there are opportunities to engage an external support provider, such as Technology Support 24/7, where specialist support or consultancy might be required, such as Sage support or business process automations, where specialist support cannot be found internally.
In summary, when comparing the cost and benefits between internal and external IT support then, there are some striking conclusions to be made, namely, that not only do you have the potential to enjoy a superior level of service, but at a cost which is at a fraction of that of setting up a internal team, combined with unimpeded access to a dedicated, highly trained team of individuals, at a level to suit your business’s needs, at a price that you can afford. If you would like to see how Technology Support 24/7 could act as your trusted technology support partner, why not talk to a member of our team, about our completely FREE technology support audit. To find out more, please visit: www.technologysupport247.com or our CEO, Nick Clarke, nick@ts-247.com.
