the value of IT outsourcing vs. cost

If your business is considering outsourcing its IT department, you’re likely encountering a few objections along the way. The decision to invest in a managed IT services provider can incite numerous questions that can slow the process and leave your business at a standstill as your executives work to justify costs and determine the value of IT outsourcing. Avoid the delay and hassle by debunking the following myths before they impair your business decision.

“Many companies begin with thinking about what their IT will cost them but should really be thinking about what they can get from implementing the best IT solution for their business. It’s an investment in the end result versus an investment in IT.”—David S. Schafran (President of Transformation Strategies)

Is an in-house IT department cheaper?

Businesses often believe they can manage the entirety of their IT needs by implementing an in-house solution at a lower rate than a managed IT services provider offers, but there are several factors companies should consider before adopting this belief.

IT technology and hardware expenses

An in-house IT solution will require your business to manage software updates and install the patches and upgrades necessary to keep the equipment, and your business, operating seamlessly. A managed IT services provider offers access to the best vendor prices and latest technology for your business. The managed service provider (MSP)  manages and upgrades the resources needed to ensure your IT environment is functioning at its full capacity while enabling your business goals. An MSP will likely relieve your organization of the hassle involved with maintaining IT equipment, thus allowing your company to focus its resources and time on its core competencies.

The costs of IT staff

The costs associated with hiring and retaining a proficient IT staff can accumulate quickly and the permanence of employees is uncertain. It’s common for companies to consider an in-house IT team to be a financially sensible choice, but it’s imperative your business consider the unpredictable contingencies that may arise when relying upon a few employees, or one person, to service your entire IT environment.

IT outsourcing providers spend time educating and training their IT staff because the knowledge and skills their employees acquire can be utilized time and time again to serve a number of clients. Your employees may have the technical ability to learn and implement a specific project, but they may be required to use the knowledge and skills they honed from that process few times, if at all, in the future. The hours and funds your business invested in training and education may prove to be unhelpful as new technologies evolve which require additional training and costs. An outsourced IT solution will likely provide a skilled and knowledgeable IT staff proficient in the latest technology and capable of implementing a variety of solutions to serve your IT environment effectively. This will allow your organization to focus on the growth of your business instead of the necessary means to keep pace with the latest technology trends and evolving issues.

Your business may be able to hire someone capable of providing the extensive services offered by an MSP, but they will likely cost your organization a minimum of $110,000 a year and the employee may leave your company to look for a more advantageous career. In addition, that employee is only one person and is incapable of being constantly available when taking sick days, on vacation, running late to work, handling prior commitments, or when trying to service the needs of multiple employees at once. A managed IT services provider will likely offer 24/7/365 remote monitoring and support from a team of IT experts readily available to ensure the health of your IT infrastructure. The MSP should provide around the clock support, whether the problem occurs at three in the afternoon or three in the morning, nearly eliminating downtime and boosting your company’s productivity.

IT Budget and planning

An MSP can offer another advantage an in-house solution likely cannot, a predictable IT budget. The managed IT services provider should outline the costs associated with potential projects necessary to enhance your business’s IT environment for the next one to two years, and in addition, should charge a flat, monthly rate in which all contracted services are included. The IT strategy outlined by the MSP will usually afford your business the peace of mind and time to enhance your business without worrying about urgent, unexpected IT projects and expenditures.

On-site accessibility vs. remote support

Companies frequently believe having their IT support on-site is more efficient because the IT support person is closer to home. However, they forget to consider the services that extend beyond end-user support that allow your IT infrastructure to be more than a commodity, but an enabling tool for your organization’s development. While it may cost more to invest in an MSP, your business will likely gain more from the increased efficiency and seamless processes the MSP’s solutions facilitate.

A managed IT services provider will likely employ a proactive approach to managing your systems versus reacting to the issues as they occur. The team of skilled technicians and support staff can often identify and remedy issues before your business is aware they were a problem. In addition, an in-house IT technician likely has a limited skill set and will be incapable of managing end-user support, 24/7 monitoring, updates, projects, and developing proactive strategies all at once. An MSP has multiple people with multiple levels of skills and can provide all of these services while working with your company’s executive team to determine the best solution for the future of your IT environment and your business as a whole.

Providing best-fit solutions to ensure your business is receiving the most valuable services for your unique IT environment is one of our core values at Aldridge. Contact a firm representative today to learn more about what we can offer your organization.