The Cost Comparison Of Outsourced IT Services And Internal IT

You may assume that hiring a company to take over a few key IT roles would be more expensive than staffing them internally - but that’s not necessarily the case.

Are Outsourced IT Services More Cost-Effective Than Your Internal Team?

When you started (or joined) your business, how were you handling IT?

There’s a good chance you did the same as so many others, handling a range of tasks and operations in-house, including accounting, marketing, human resources, and IT. However, once you’ve grown to a certain size, you’re likely to start thinking about outsourcing at least a few of these operations.

Why? It’s all about value. Do you understand the unnecessary expenses that come with internal IT?

The Costs Of Internal IT

There are several ways your internal IT staff costs you:

  • Employee Expenses: An in-house IT technician can cost $50k annually or more. To be effective, IT service and support requires up-to-date skills and expertise. The bottom line is that a worthwhile IT technician will be expensive to hire.
  • Benefits, Sick Leave, Vacation Costs: There are additional expenses on top of a salary to consider. For example, holidays, and the coverage while your IT technician is away. When you consider all of this, just one IT technician can cost you even more.
  • Management Expenses: While your business may be profitable, management probably doesn’t want to devote their time to overseeing IT. Do you even know if your IT staff are doing their jobs adequately? How can you, unless you stay up to date with today’s technology needs?

The Cost-Savings Offered By Outsourced IT Services

  • Reduced IT Costs: Businesses that choose to outsource can convert unplanned IT expenses to fixed, predictable ones. This frees up capital for other aspects of your business.
  • Hiring A Company, Not A Person: An in-house staff is subject to business hours, requires full salaries, benefits, and vacation pay, and will undoubtedly call in sick from time to time. By outsourcing your IT department, you leave the managing, training, payment, and other variables that come with actual employees to someone else.
  • Reduced Downtime: Downtime is bad for business. And the main cost of downtime is not the fix itself, it’s the halt in your business’ productivity. If an IT-related or natural disaster occurs and takes critical systems offline, employees will be unable to complete their tasks, yet your normal business expenses will carry on.

The fact is that downtime is often the result of poorly supported IT. The best way to approach downtime prevention is proactively – you need to keep an eye out for system issues that can spiral into total stoppages. You need to implement backup technologies and best practices to prevent outages. You need to enhance your cybersecurity to protect against cybercrime.

Verdict: Internal Or Outsource?

When you’re hiring in-house, it’s often less expensive in the beginning. As time goes on, you start to notice the many costs that come along with hiring someone who doesn’t come with a range of skill-sets and in-depth experience.

Making any big change in your business can be a difficult step; but before you decide to stick with what you have, answer this one question – what happens when your in-house IT support person was out sick or on vacation, and you couldn’t get something fixed when you needed it?

With outsourced IT services, you’ll have access to a team of IT experts with a breadth and depth of tech knowledge and experience — something most businesses could never afford with an in-house IT staff. What’s more, you’ll benefit from 24/7 Help Desk Support, to make sure your needs are quickly addressed, and information technology stays up and running at all times.

The BC Networks team is proud to offer a comprehensive suite of IT services to meet the specific needs of your business. Our team is dedicated to making sure you’re always leveraging the power of the most effective tools for your success.

Find out how our IT services can help you personally.

Contact us or call: (408) 243-1100 today!