IT consultant cost is an important question that companies don’t ask often enough. Business owners often look at their annual expenses every year. This includes IT support. IT support is just one cost of managing a network. Dependent on the industry you work in, downtime could be the greatest cost to your IT expenses.
The true cost of downtime
Many small and medium-sized companies don’t have a plan in place for their networks to fail. Server/desktop problems, router/switch malfunctions and firewall crashes can all cause business disruptions that last several hours. These things are rare and most business owners don’t even know they happen. Downtime can lead to other problems than losing the content that is online.
While the network is still operating, downtime costs
Any time technical problems affect employee performance, it is called downtime. Downtime can be caused by slow websites loading, applications not responding to requests, and software updates being delayed. A business can calculate the cost of downtime if they track all these factors.
How do we calculate the cost of this downtime This is assuming an employee earns $40,000 annually, less two weeks vacation. That works out to $20 per hour. Even something as simple and straightforward as slow loading times causing only two minutes each hour, it becomes 16 minutes per day and an hour 20 minutes per week. These costs add up to approximately $27 per week, and $1350 annually.
This alone could cost over $13,000 for employee downtime. Another breakdown is:
- 3 employees @ $20,000 / yr = $ 60,000
- 4 employees @ $35,000 / yr = $140,000
- 2 employees @ $50,000 / yr = $100,000
- 1 owner = $ 80,000
- Payroll total of $380,000/yr
This is roughly $183 an hour for a staff of the same size. A server that goes down for more than two hours costs a company $366. This does not include the cost of hiring a company to repair the problem. An entire day of downtime can cost the company almost $1500 just in lost labor.
Apart from the obvious fact of downtime problems being more costly, you could be losing over $17,000 in productivity each month. These costs will likely double the cost of IT consultancy to manage your network throughout the year.
Is it possible to hire an IT professional full-time?
Many small and medium-sized companies hire IT staff. However, salaries can range from $40,000 to $60,000 for these employees. This does not include benefits, taxes, or other expenses. However, the majority of companies spend $8,000 to $15,000 on outsourced IT consulting services. It is expensive to hire staff for IT support services. For companies with more than 100 employees, it may be a good idea to hire a dedicated IT specialist. For smaller businesses, however, this may not be an option.
These are the rates that businesses who hire IT services to fix things usually pay:
- Individual tech: $60-$100 an hour
- IT Company for 1-2 People: $75-$125 an Hour
- Mid-sized IT Support (5-8 employees): $90-$150 an hour. Some companies offer managed services plans (see below).
- Additional IT Support (10+ Employees): $100-$225 an hour, with some companies offering a monthly service plan (see below).
Many IT companies offer retainer contracts that allow customers to pre-pay for up to 30 hours at a reduced rate. This makes billing easier for IT companies, but most customers don’t see the value.
Are you looking for a flat monthly cost for IT services?
Many companies offer monthly managed IT services packages. These services are often referred to IT Managed Service Providers. These providers offer remote and on-site assistance, as well as monitoring.
Flat fees have the advantage of having a fixed price. You still have to pay even if your network is working well for you. Some business owners are annoyed by inconsistency.
It is also absurd to pay a monthly retainer for fix/break services. This business model requires that the IT company does not do anything for you unless there is a problem. The company gets paid even if this doesn’t happen.
There are many more reliable and skilled IT-managed service providers that use a superior business model. These service providers provide continuous monitoring and optimization of your network’s performance to maximize all aspects. These companies not only fix things when they go wrong, but also work continuously to improve your business goals.
Reduce IT consulting costs
You will pay regardless of how you manage IT consulting costs. You still have to pay for IT management, regardless of whether it’s thousands for every broken piece or hundreds for a retainer. It is a fact that cannot be ignored. IT management has become a business expense in modern times.
Business owners must ensure that they don’t pay too much for their services. It is important to not pay too much for downtime or other technical issues. Any company that is not working at 100% productivity costs money. These issues can be costly and easily avoided.
Flat monthly fees for managed services may vary greatly depending on the company. Companies often charge per device. These services include remote maintenance, constant monitoring, app updates and support as required.
The cost of monthly IT consulting services can vary depending on the needs. These are some averages.
- Desktop Management = $50/ month per desktop
- Server Management: $250 per month per server
- Network Management = $300/ month per company
These sample companies will incur annual costs.
- Company 1 – 1 server and 5 workstations = $793/month or $9,500 annually
- Company 2 – 12 workstations, 2 servers = $1,385 per month, or $16,620 annually
- Three to four servers for a company, 25 workstations = $2.520 per month, or $30,240
Outsourcing IT has many advantages
Outsourcing your IT services allows you to concentrate on your core functions. It is possible to try to implement IT projects yourself without the assistance of a partner skilled in IT. It will distract from your core business goals.
Get IT expertise
Outsourcing your IT requirements has the advantage of allowing you to access your entire range of expertise and experience. If you need new infrastructure for a project, you can also access the software and hardware solutions of the consultants. They can also help you create the right plans to ensure your success. They can also help you create custom software and applications that meet your specific needs.
This expertise allows you to focus on your customers in a fast-paced world that requires immediate attention.
Reduce operating costs
You can reduce your IT costs and labor by outsourcing all your IT requirements. These things can be costly, whether you have an IT staff or employees who attempt to solve IT problems on their own. In-house IT staff spend 30 percent or more of their time on mundane and low-level tasks, rather than addressing the most important business network issues. A partnership with an IT consulting company can save money and help you divide your needs.
A dedicated IT consultant can assist the company in implementing its needs, making it more efficient for the whole organization, and not just the IT department. IT consulting services are used to improve business operations and save money.
A dedicated IT service consultant can help you determine the best solutions for your project. It doesn’t matter if they are software or hardware. This information will allow your business to quickly respond without impacting your business operations. If the solution they offer is not right for you, the IT consultant will be able to reevaluate your requirements and make improvements.
Scale your services
You are probably familiar with the difficulties of hiring the right people to your business. It is difficult to find the right people for your business. Your IT requirements will grow as your business expands. The problem with having your own IT person is that they might not be able to scale with your company.
You can outsource your IT requirements to ensure that your IT needs are met as your business grows. Many outsourced IT packages offer a range of specialists to help you meet future requirements. Outsourced IT services cost a fraction of the price of in-house staff and remain affordable as companies grow.
Reducing in-house staff
Employee costs are one of the largest expenses for any company. The cost of employees includes salary, benefits and taxes. They also take up office space that is needed for other purposes. You get all the benefits of IT staff but without the additional costs and space. These are particularly important for a new company.
As income is low and revenue can fluctuate, new companies don’t have the luxury to hire many people. It is sensible to delay hiring an IT manager because of these risks.
Maximize your internal team
Outsourcing IT also allows larger businesses to concentrate on their core staff. You can focus on strategic initiatives by only managing employees in the primary functions of your company.
Reduce your IT spending
Outsourcing your IT can reduce company costs for several reasons, including:
You only pay for what you use: Many IT packages offer flexible pricing and multiple levels of service. Prices can change based on the current needs of your company. You cannot increase or decrease your budget as often as you need to with an in-house team.
You can keep your staff as small as possible. This will not only ensure that payroll costs are as low and affordable as possible, but it will also help you to reduce office real estate expenses and taxes.
You can reduce your equipment costs by outsourcing IT. Your consulting company will provide most of the software and hardware needed to cut down on house equipment expenses.
