Co-Managed IT vs. Outsourced IT
Before considering cost, there are two main types of outsourced IT to examine.
There is no on-site IT staff since IT is completely outsourced. The MSP may help with troubleshooting, security monitoring, backups, and upgrades, among other things. The MSP may keep and maintain servers in an off-site data center. You should think of the MSP as a strategic technology partner.
Co-Managed IT — The firm already has an information technology team, but they need help. To free up internal resources, this might entail offloading normal computer system activities like as upgrades, backups, security monitoring, and even help desk. Alternatively, if basic personnel is in place to handle the day-to-day operations but specialist expertise is required that is not accessible in-house.
They have access to IT professionals that are in the trenches day after day with comparable firms and are in the greatest position to provide advice, in addition to drastically cutting costs and enhancing efficiency.
For a variety of reasons, larger companies may decide to move to a co-managed IT system.
It may enable an overburdened internal IT staff to concentrate on core services, offer specialized services and skill sets that aren’t cost-effective to invest in, or access specialty services like managed cyber security or the time and expertise of a Virtual CIO (vCIO.)
Before we get into the several alternatives for providing IT assistance to your company, here’s a brief graphic that compares the costs of retaining an in-house IT staff against outsourcing your IT to a third-party provider.
How much does IT support cost on average?
The typical cost of IT support services varies based on a variety of variables, such as the size of your company, the complexity of your IT systems, and your unique requirements.
Option 1: Keep your IT staff on staff.
Internal IT departments may seem to be the ideal choice for keeping your company functioning, with someone constantly on hand to keep everyone’s printers working and passwords current.
However, depending on where your firm is situated and what your demands are, this solution frequently comes at a significant expense.
The typical compensation for a desktop technician is roughly $50,000 per year. This entry-level IT employee’s major responsibility is to upgrade and maintain hardware and software while also resolving minor troubleshooting difficulties.
IT managers are paid between $80 and $150,000 a year, depending on their level of experience, to oversee key business IT systems and ensure that they are in line with your business strategy. Among other things, a seasoned IT manager will handle high-level activities and guarantee that the organization’s IT infrastructure is prepared for future expansion and industry standards. Of course, the most prevalent issue is that many organizations can only afford one IT manager to oversee all aspects of the company’s IT operations.
You’re not getting the most out of your IT investment if you’re assigning desktop technician-level problems to your IT managers or directors on a daily basis. You’re likely in for some nasty shocks if you give your lone young technician more responsibility than they can manage, particularly when it comes to cybersecurity.
Pros: IT employees are visible and accessible (at least during office hours) and are well-versed in the IT network topology and applications.
Cons: Expensive overhead. When compared to the number of workers, they are usually understaffed. Higher-level technicians are too preoccupied with day-to-day troubleshooting to focus on company strategy. There is undoubtedly a dearth of expertise in some sectors, such as security. Sick days and holidays might be an issue if there is just one IT manager.
Option 2: Hire an outside firm to manage your whole IT department.
Some individuals are concerned when they hear the terms “outsourced IT,” “remote help desk,” or “cloud computing.” Isn’t it true that having the IT man stand behind you at your desk to solve that computer problem is always preferable? For practically all fundamental IT difficulties, the answer is a loud NO.
Most typical issues, such as a broken printer, a sluggish computer, or a forgotten password, may be readily resolved by your Managed Services Provider in minutes using remote support software (MSP.) These situations don’t need having someone on-site, and having remote professionals take over may actually save time and money. Anywhere in the globe, at any time, and for any reason, you may pick up the phone and speak with a help desk professional.
On occasion, you may desire or want on-site assistance. Whether you need weekly help, a one-time visit for a particular project, or a visit when a problem cannot be resolved remotely, this may be readily arranged via your MSP.
As technology continues to get more sophisticated and develop at a quicker pace, the demand for higher technical knowledge is the leading reason for organizations to outsource IT.
It’s almost hard to find the range of knowledge you’ll need to be competitive, and building and managing it yourself isn’t cost-effective. That’s where Managed IT Services can make all the difference, allowing you to benefit from the economies of scale that only an MSP can provide.
Pros: With no sick days or holidays, you’ll have access to a team of professionals available 24 hours a day, seven days a week, for network monitoring, security, and support. Due to a bigger amount of IT professionals, there is a lower danger. Faster resolution times than in-house IT staff who are overworked. Deep knowledge in areas such as managed cybersecurity, industry compliance, and virtual CIO services is available. Can save a lot of money, particularly for small and medium-sized organizations.
Cons: You must choose an MSP that provides outstanding communication and customer service. Limited or spotty communication leads to irritation and, eventually, service dissatisfaction. It’s a good idea to have at least one inside resource who is in charge of working with your selected MSP.
Option 3: IT that is co-managed
Having an internal IT manager and an outsourced IT service provider gives your company the best of both worlds, and most bigger companies have realized this.
Co-managed IT frees up your IT staff to concentrate on your top priorities, such as developing ways to empower your people to be more productive and ensuring that systems are aligned with corporate objectives.
IT executives should be looking at how mobile apps, collaboration tools, and cloud computing may be used to boost productivity and profits, but this is tough to achieve while your staff is busy with basic maintenance.
Requesting corrective work from competent specialists does not add to job satisfaction. This causes general workplace dissatisfaction since your staff is unable to work around malfunctioning equipment while waiting for the office IT person to arrive! A productive and successful IT department for any size firm is the result of a mix of skilled IT managers guiding your corporation towards a solid IT environment for the future, as well as hundreds of help desk specialists ready all day, every day.
Pros: Take advantage of the best of both worlds. Boost the efficiency of your internal workforce. You may still keep control and direction over your environment by outsourcing the jobs you don’t wish to conduct in-house. Alternatively, you might use the knowledge you don’t have to assist you with strategic goals.
Cons: Maintaining in-house personnel as well as paying for outsourced IT services might be prohibitively expensive for smaller businesses.