Managed IT Service: The (Surprising) Factor of Cost

March 6th, 2012 by Thomas Clifford

Our managed IT services series continues with this third and last article.

The first article shared the advantages of outsourcing your IT needs to a managed service provider. The second article highlighted how remote support and 24/7 monitoring help keep your business running smoothly.

But what about the costs associated with outsourcing your IT needs?

Isn’t it more expensive to use a managed IT service? Not necessarily.

In fact, it can be surprisingly less so. (Of course, every situation is different, and one answer can’t apply across the board.)

What you have to do is measure the volume of things that are going on in your organization. If you were to sit down and do the math, for some it makes sense to have a full-time IT department. For others, a managed IT service makes more sense.

The cost of a managed IT service can be (surprisingly) less than expected

Here’s an example.

Let’s say an organization wants to hire four different kinds of IT employees. Let’s also say this organization wants to buy the technology needed to do everything that ForeSite would do for them.

It could cost you hundreds of thousands of dollars per year versus approximately $30,000 a year for us to manage that service.

It would be extremely difficult to hire an internal resource for $30,000 a year who has the level of expertise and experience that the entire ForeSite team would bring to that organization—close to 100 years’ worth.

Our breadth of knowledge includes:

  • Experts in preventive and monitoring services
  • Network architects to address your needs right the first time
  • Senior engineers to solve higher-end problems
  • Certified staff to handle multi-site connectitivity issues

A $60,000 salaried IT employee would most likely struggle to become an expert in all these areas. To be clear: that’s not to say that some people don’t have skills and talents and know the business well. It’s just that they may not have the opportunities to learn everything that’s going on in the world of technology.  Plus once you hire them, the costs to keep the up-to-date with new technologies must be factored in as well.  And they’ll be learning how to implement them in your live production environment.

A dedicated team devoted exclusively to your IT needs not only minimizes costs but improves your systems and provides you extra time to do what you do best: run your organization.

Let’s look at two more real-life examples.

Example #1: A 20-person accounting firm

This firm may not need a full-time staff person to handle their IT needs. And even if they were able to hire a person, he or she may not have the breadth of skills that the entire ForeSite team provides.

Based on the different IT needs the organization has, ForeSite might assign senior engineers, network architects, and standard engineers to this account.

Example #2: A typical school

The IT person at a school might be great at solving the day-to-day issues, but may not have the skills to handle firewalls, servers, and the wider-scale network architecture or switching issues.

ForeSite can provide the entire range of these types of services for a fixed amount—and backed by our team’s expertise—which could be the same or less than a single person would cost you.

Why outsource to ForeSite?

When you work with ForeSite, you receive the benefit of the deep knowledge our team members have gained in other businesses and other industries.  Unlike some outsourcing firms, we share information and communicate with any internal IT staff to work as a team to support you.

How can you tell if outsourcing some (or all) of your IT services makes sense for your organization?

The first step is to ask the right questions. That’s what our free download guide is for. It asks five questions that will help you determine if a managed IT service is right for your organization.

FREE Download

Explore your options by using our one-page guide, “Five Questions to Determine if a Managed Service Is Right for Your Business.”

The guide is completely FREE. Just fill out a simple form.

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