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Posted by Marketing | March 14, 2014

What Is The Cost Of Not Having Managed Services?

If this is your first time looking into managed services for your business, you may be a little sticker shocked to see the cost.

We understand it is difficult to go from having zero IT budget, or maybe paying for a couple of hours of work, to a consistent monthly payment. However, you may find the cost of being tied-up by IT problems is more expensive.

How Much Does Managed Services Cost?

Using my previous blog, which can help estimate your IT budget, a company with 10 users can expect estimate pricing around $750-950 per month. This would be for an agreement that includes all remote tickets, which is what we recommend for businesses new to managed services.

How Much Does Not Having Managed Services Cost?

As I was stating earlier, business owners find it difficult to justify paying for $750 per month ongoing IT services when they currently allocate little to no dollars to IT. But the fact is they are spending money on IT issues even if it doesn’t show up on the books.

For example, let's say each employee at the 10 user company I referenced earlier experienced 1 hour of IT issues per month. Honestly, one hour, per user per month is being conservative. Some common IT issues are a slow computer, a lost printer connection, a dreaded blue screen, a full server crash, etc. A wide variety of problems come up on a regular basis for any company that relies on technology and those problems cost each business resources and money.

Employee Wages - These numbers are admittedly arbitrary, but if each employee on average makes $20 a hour that is $200 in wasted employee wages.

Employee Potential Billable Work - We work with a lot of professional services providers such as CPAs. If five employees charge $200 per hour that means a $1,000 loss in potential billable work.

Cost for Hourly IT Support - Finally, if we allocate one hour of tech support to each user's problem that is $1,500 per month.

Between wages, billable hours and hourly support the business could lose $2520 per month. That doesn’t include the building frustration employees face dealing with these issues.

Another option is our 10 user business owner could hire a managed services provider, pay around $850 a month, prevent most technical problems, and quickly resolve the ones that still occur.

Again this example is very broad with many variables but if you look within your own business I suspect you’ll find the cost of Managed Services is less than the cost without Managed Services.

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Lori-Mankin1 Lori Mankin, Marketing Coordinator

Our goal for this blog is to answer the questions you ask. If you have any questions about managed services or any other topic please email me at lori@myitpros.com. To learn more about IT subscribe to our blog.

 

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