IT support is a great foundation for business owners to take their business to successful new heights. Essential for modern business operations, it contributes to efficiency, security, compliance, innovation, and strategic decision-making. Using technology effectively can help businesses achieve their goals and stay competitive in today’s digital world.
We know how important IT Support is, we also understand how expensive it can be. Therefore, it is equally important to create a model and budget that best fits their needs.
In-House vs Outsourcing IT Support Costs
Small businesses often get IT support from friends and family, third-party companies with IT experts, or hire their own IT team. For more information, visit our previous article “In-House vs Outsourced IT Support“.
While this has some advantages, it also carries some downsides that many small businesses find financially challenging.
- Cost: Hiring an IT support specialist can cost, on average, over $60,000 a year. This does not include what would be spent on insurance, taxes, benefits, etc.
- Hiring: Hiring an IT specialist can be challenging if the business owners are not an IT expert themselves. Hiring the wrong technician can lead to serious issues with the business’s infrastructure.
Small businesses can also opt for outsourced IT support.
This option can be cost-effective. This choice can save money. Businesses, on average, pay between $75 and $200 or more per hour, or $600 to $2,500 per month for outsourced IT support. The cost depends on your IT requirements and expertise level.
According to Cisco, outsourced support can reduce in-house costs by 30-40% and increase efficiency by 50-60%, making it a compelling choice for many small businesses seeking reliable IT support without the burden of full-time in-house specialists.
Do you want to learn the benefits of how to outsource IT Support? Check out our other blogs:
What does Average IT Support Cost?
The answer to this question: it depends on the situation. The average cost of IT support depends on several factors such as the size of the business, IT services needed, IT infrastructure, geographic location, level of service (onsite, remote support, or both), and the expertise of the IT service provider. There are multiple options.
Hourly Rate
IT service providers may charge hourly rates for ad-hoc support or project-based work. Hourly rates can range from $75 to $200 or more per hour, depending on the expertise and location of the provider. Here are a few benefits:
1. Cost Efficiency of Occasional Needs: Hourly rates can be cost-effective for clients who have occasional IT support needs. Instead of committing to a fixed monthly fee, clients pay only for the actual hours of service used, which can be more economical when IT support requirements are limited.
2. Pay for Performance: Hourly rates can align with paying for performance. Clients pay based on the actual time spent on tasks, which can encourage service providers to work efficiently, resolve issues promptly, and prioritize tasks based on importance and impact.
3. Cost Control for Small Projects: For small-scale projects or one-time tasks, hourly rates can offer better cost control compared to committing to a monthly retainer or subscription model. Clients can engage IT support on an as-needed basis without incurring ongoing expenses.
4. Avoidance of Unused Services: Clients may avoid paying for unused services or downtime with hourly billing since they are only billed for actual productive hours spent on IT support activities.
However, if the IT requirements demand ongoing support or a dedicated advisory team is needed to improve IT infrastructure, it’s worth exploring a deeper commitment with the IT support provider. See below!
Managed Services Agreements
Managed Services Agreements (MSAs) are contracts between the IT service provider and a client that define the scope, terms, and responsibilities related to managing and delivering specific IT services.
When comparing monthly agreements to hourly arrangements in IT services, it is important to consider;
1. Partnership and Long-term collaboration: Monthly agreements often encompass a broader range of services beyond basic support tasks. They may include proactive maintenance, strategic planning, technology consulting, and ongoing optimization of IT systems. The service provider can act as a trusted advisor, providing strategic guidance and recommendations to support the client’s growth and efficiency goals.
2. Predictable Monthly Costs: MSAs typically involve a fixed monthly or quarterly fee for IT services, providing predictability in IT support costs. These costs can average between $600 to $2500 per month. Most will also show a Price per user or Price per Device charge when figuring out their monthly/quarterly fee. It reflects the level of support and resources required to manage each user and device effectively.
3. Save money with proactive maintenance: Managed service providers (MSPs) focus on preventing issues and keeping IT systems running smoothly. They prevent big problems, reduce downtime, minimize disruptions, and lower IT support costs by addressing issues early on.
Outsourcing IT management and support to a managed service provider can save organizations money. This is because they no longer have to purchase and maintain IT equipment and software. Instead, they can rely on the expertise and resources of the service provider.
This can lead to cost savings and improved efficiency for the organization. MSPs often include these costs in the monthly fee, spreading expenses over time.
What does Zia Networks Offer?
We are happy to offer customized IT Support through our Managed Service Agreements (MSAs), designed to meet the needs of our local businesses. We present two plans: the Unlimited Plan and the Remote Monitoring Plan, each offering unique advantages to our clients.
For businesses that require extensive and continuous IT support without worrying about additional fees, our Unlimited Plan is the ideal choice. With this plan, clients benefit from unlimited support services, ensuring that they can reach out to our expert team whenever they encounter IT challenges or require assistance. The Unlimited Plan is designed to provide peace of mind and flexibility, allowing businesses to focus on their core operations.
On the other hand, our Remote Monitoring Plan caters to businesses seeking proactive IT management and it support cost control. This plan includes prepaid technical support hours per month. Our team conducts continuous monitoring of systems, performs proactive maintenance, and offers timely assistance based on the prepaid hours, ensuring that businesses can optimize their IT infrastructure without unexpected expenses.
Our pricing structure is transparent and competitive, starting at $600 per month for our basic IT support package. We follow a price-per-device model to ensure fairness and accuracy in billing. Clients pay based on the devices they would like us to support. This pricing approach allows businesses to align their IT support costs with their specific infrastructure requirements, promoting cost-effectiveness and scalability.
By choosing our services, businesses gain access to reliable, proactive IT support tailored to their needs. We are committed to serving the business community and helping our clients navigate the complexities of modern technology with confidence and efficiency.
