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How Much Will Outsourced IT Cost?

Cost of Managed IT

Managed service providers (MSPs) are becoming increasingly popular among businesses of all sizes who are looking to outsource their IT management. MSPs offer a range of services to help businesses manage their IT infrastructure, from network and security management to data backup and recovery. However, not all MSPs are created equal. At some firms, the cost of managed IT can be lower than others, but is it worth the savings?

A Chevy and a Cadillac. They are both cars and will take you where you need to go, however can they do it in significantly different ways. Likewise, there are significant differences between a “Chevy” outsourced IT firm and a”Cadillac” outsourced IT firm that can impact the quality of service you receive. In this article, we will explore the top 5 differences between a low-cost MSP and a high-cost MSP, and how to choose the right MSP for your business needs.

Understanding the Cost of Managed IT

MSP services are designed to help businesses manage their IT infrastructure more efficiently and cost-effectively, since many businesses don’t have the time or resources to manage their IT needs in-house. MSPs offer a range of services, including support desk, network and security management, data backup and recovery, software management, and hardware support. One of the most important things MSPs provide is proactive monitoring and maintenance of your IT systems. This helps prevent downtime and ensures your business runs smoothly. MSPs can save you time and money by handling routine IT tasks and minimizing the need for expensive in-house IT staff.

Top 5 Reasons the Cost of Managed IT is Different

Quality of Service

“Quality” MSPs generally offer a higher quality of service than the “Budget” MSPs. The “Quality” MSPs typically have more experienced and highly qualified staff, better infrastructure, and use more advanced technology. They also tend to offer a wider range of services and support, including 24/7 customer service and proactive monitoring and maintenance.

Expect more of a bare bones approach to service from the “Budget” MSPs. They will strip down the fluff and will focus on delivering core services  They may have to partner with other teams for security or cloud services, however they can deliver quality service on the core services. 

Response Time

One of the most common things we hear from potential clients is that they are frustrated with the time it  takes to get a response from their current MSP.  When you submit a ticket, you’d like a quick initial response. “Quality” MSPs typically have more technical resources, which allows them to respond faster to IT issues quickly.  They also tend to have more sophisticated monitoring and management tools, which can help them detect and resolve issues before they become a problem.

Customization

“Quality” MSPs usually offer more customization options than low-cost MSPs. “Quality” MSPs typically have more resources and expertise, which means they can tailor their services to meet the specific needs of your business. They can also provide more detailed reports and analysis, which can help you make more informed decisions about your IT infrastructure.

The “Budget” MSPs most certainly make sure your systems are maintained and provide support services, however they won’t be able to deviate much from their core services.

Security

“Quality” MSPs usually provide better security than low-cost MSPs. “Quality” MSPs typically have more advanced security technology and can offer more comprehensive security solutions. They also have more experienced security staff who can identify and mitigate security threats more effectively.

Pricing

Look for an MSP that provides transparent pricing and fits within your budget. Consider the overall value of the services you will receive, rather than just the cost.

How to Choose the Right MSP for Your Business Needs

When choosing an MSP, it is important to consider your business needs and budget. Here are some key factors to consider:

Service Level Agreements (SLAs)

Look for an MSP that offers SLAs that align with your business needs. Work with your potential MSP to craft an SLA that covers the most important facets of your business. SLAs should clearly define the services you will receive, response times, and uptime guarantees. These is where you can define your expectations from the initial get go.

Expertise and Experience

Look for an MSP that has experience working with businesses in your industry and has staff with the necessary expertise to support your IT infrastructure. One-man shops just don’t have the capacity to manage multiple clients and provide a high level of service.

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Range of Services

Look for an MSP that offers a range of services that meet your business needs. Consider the types of services you require, such as network and security management, data backup and recovery, and desktop support. Some MSPs can offer coding and application development as well. Consider your needs and make a list so you can be sure you are covered.

Customization Options

Look for an MSP that can tailor its services to meet your specific business needs. The MSP should be able to provide customized reports, analysis, and recommendations that align with your business objectives.

Security

Look for an MSP that has a strong focus on security. The MSP should have advanced security technology, experienced security staff, and offer comprehensive security solutions that align with your business needs..

Pricing and The Cost of Managed IT

Look for an MSP that provides transparent pricing and fits within your budget. Consider the overall value of the services you will receive, rather than just the cost. A budget shop may not provide a quarterly business review, providing insight into your business operations and budgeting.

Conclusion

Managed service providers (MSPs) offer a range of services to help businesses manage their IT infrastructure more efficiently and cost-effectively. There are significant differences between low-cost MSPs and high-cost MSPs that can impact the quality of service you receive. When choosing an MSP, consider your business needs and budget, and look for an MSP that offers SLAs that align with your business needs, has expertise and experience, provides customization options, has a strong focus on security, and provides transparent pricing. By choosing the right MSP, you can ensure that your business runs smoothly and efficiently.

FAQs

When is a business ready for managed IT services?
Are You ready For Managed IT?

A business is ready for managed IT services when it faces certain key considerations. Firstly, if the company spends a significant amount of time grappling with IT issues and finding it difficult to resolve them efficiently, it may be an indicator that managed IT services are needed. Similarly, if employees are not equipped with the most optimal software to perform tasks or are spending excessive time on manual processes that could be automated, partnering with a managed IT services provider can greatly improve productivity. Additionally, if there are recurring IT issues that require constant customer support intervention, engaging the services of a managed IT provider can alleviate these concerns.

An important aspect that indicates the readiness for managed IT services is the need to protect critical data from cyber attacks. With the rising number of cybersecurity risks, having experts on your side who can ensure the safety and security of your data is of paramount importance. Managed IT services can provide the necessary expertise and measures to mitigate cyber threats effectively.

Furthermore, a business that aims to optimize its operations, reduce costs, and improve employee engagement can greatly benefit from managed IT services. By partnering with a reputable provider, businesses can gain access to technology audits that offer valuable insights into the health of their infrastructure. This enables them to identify areas for improvement and implement efficient solutions that align with their long-term goals. The cost of investing in managed IT services can be seen as a beneficial investment that provides significant returns, enabling companies to plan for more efficient growth and better serve their customers.

In summary, when a business faces IT challenges, such as time-consuming issues, inefficient software usage, data vulnerability, and high cybersecurity risks, along with a desire to optimize operations and reduce costs, it is likely ready to consider managed IT services as a solution.

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How much do managed IT services cost?
How much will managed IT services cost my business?

Managed IT services pricing can vary based on several factors. The pricing model, the specific support services required, and the size of the business all play a role in determining the cost. When comparing various Managed Service Providers (MSPs), you'll come across different pricing models commonly used in the industry.

Some MSPs offer basic break-fix or device setup services at an hourly rate. However, opting for these models may mean sacrificing long-term security services and round-the-clock monitoring with remote support. If you prefer a hands-off approach and want more comprehensive support, you'll need a more robust plan.

In such cases, companies often charge per user, per device, or offer tiered services that allow you to select the level of support required. Additionally, some MSPs offer "a-la-carte" services, which means you only pay for the specific services you utilize.

If you wish to offload all your IT needs to an MSP, it is advisable to compare the service pricing of MSPs that offer comprehensive support. These companies usually charge either based on the number of users per month or the number of devices being managed.

While the pricing can differ, depending on the MSP, the average monthly costs generally fall within the following ranges:

- For per user pricing model: $125-250 per computer.
- For per server pricing model: approximately $299 per server.
- For per network pricing model: approximately $200 per site.

Keep in mind that these are average figures, and it is crucial to assess your specific requirements and negotiate pricing accordingly.

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What specific services can an MSP provide?
Specific Services

Managed service providers offer a range of services to help businesses manage their IT infrastructure effectively. Some examples of services they can provide include cloud consulting, project management, IT strategy development, cybersecurity consulting, and hardware technology consulting. Cloud consulting involves assisting businesses in migrating to cloud-based solutions and optimizing their cloud infrastructure. Project management services help businesses plan and execute IT projects effectively. IT strategy development involves aligning IT objectives with overall business goals. Cybersecurity consulting focuses on assessing and improving the security posture of businesses. Hardware technology consulting helps businesses select and implement the right hardware solutions for their specific needs. These are just a few examples, and MSPs can offer a tailored suite of services based on the requirements of each business.

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What are the long-term benefits and returns of investing in managed services?
Long Term Benefits

Investing in managed services can yield long-term benefits and returns for businesses. By partnering with an MSP, businesses can reduce costs by eliminating the need for expensive in-house IT staff and infrastructure. MSPs can also provide proactive monitoring, maintenance, and support, which can prevent costly downtime and disruptions. Additionally, MSPs can help businesses plan for more efficient growth, align their IT strategies with long-term goals, and stay up-to-date with the latest technologies and industry best practices. These factors combined can lead to improved business performance, customer satisfaction, and overall success.

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How can managed IT improve employee engagement?
Does managed IT improve employee engagement?

Outsourced IT management can improve employee engagement by providing better technology tools and systems. With the right technology infrastructure in place, employees can collaborate more effectively, access information and resources easily, and automate repetitive tasks. This can result in increased productivity, job satisfaction, and overall engagement. IT firms can help businesses implement employee-friendly technologies and provide training and support to ensure smooth adoption and utilization of these tools.

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How can a managed IT firm help optimize business processes?
How can managed IT help optimize business processes?
Managed service providers (MSPs) can help businesses optimize their processes by analyzing existing workflows and operations. They can identify inefficiencies, bottlenecks, and areas for improvement, and then provide solutions and strategies to streamline and optimize those processes. By implementing better technology and leveraging their expertise, MSPs can help businesses achieve greater efficiency, productivity, and cost-effectiveness in their operations.
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