As an organization, you always aim to minimize costs and maximize outputs — this isn’t any different when it comes to IT management. Narrowing down to IT support cost per employee gives you a clearer picture of your expenditure vis a vis the ROI.
The prices of supporting business computer systems vary from one state to the other. As you’re interrogating your financial books at the close of a fiscal year, you are probably only looking at the amounts you can see. When evaluating the cost of IT support per employee, however, the recorded figures are just the tip of the iceberg.
The highest price you can pay is constant inconveniences due to insufficient support in site downtimes.
Tom Martinez provides IT Services in Grand Rapids for local businesses and works closely with organizations looking to maximize their IT investments.
What’s The Impact Of Network Downtime On IT Support Cost Per Employee?
Very many SMBs lack concrete strategies to sustain site uptimes. Why? Because downtime is associated with major issues such as crashing of PCs, firewalls, or servers, or malfunctioning of routers — which rarely occur. Going by this assumption, you may fail to understand why Gartner quantifies the average cost of downtime at $5,600/minute.
Here’s the thing — there is a hidden scope of network downtime, which is even more costly.
Are you continually experiencing pixelated videos?
Have you ever considered the losses from the time wasted as your employees wait on slow browsers, printers, or pages to download?
What about productive time otherwise used in recreating lost or deleted documents?
All these constitute network downtime. The bad news is that you will never notice their cost implications unless you go into details.
In the U.S., an IT specialist is paid $51,838/yr, on average. Let’s assume that they are entitled to two weeks of vacation every year, and they work for ten hours a day; this means that each of them earns $14.73 per hour. If a worker loses just two minutes each hour due to slowness in their workstations, you are counting sixteen minutes of work time lost for every typical day. In a week, they lose 80 minutes — which translates to $6,913 in IT support per employee due to network downtime
You don’t have just one employee. For example, with ten workers, the cost jumps to $6,919, and on, and on. This does not include instances when you have major server issues that take your systems down and out. You haven’t considered the service bill for the expert who’ll fix these problems.
Network downtimes can cost you more than what an IT support company would bill you in a year.
How About Having A Salaried In-house IT Team?
Usually, this is considered an option only viable to larger organizations with 100+ employees because it’s relatively costly. You have to pay the IT specialists hefty salaries (between $40,000 to $60,000/year for each expert), benefits, and various allowances. This is besides continually facilitating them through capacity building programs to keep them at par with the latest tech hacks.
In some cases, even established firms opt for an ‘IT Guy’ who is only summoned on a need basis. This comes with an hourly rate of between $60 to $100 depending on your company’s size and the tasks performed.
In the past, many IT support firms sold their services in terms of blocks of time. Once you buy, say 50-60 hours, it is your discretion to decide when and where you’d use them. The problem comes if the experts were engaged elsewhere just when you need them. Although some service providers still offer this payment method, it has significantly lost popularity among customers.
Why Many Businesses Do Not Prefer Fixed Monthly Rates/Managed IT Services
With a flat rate arrangement, you incur a fixed IT support cost per employee — even if you don’t need any support or maintenance. On the flip side, it saves you a lot of money that would have been used in mitigating inadvertent incidences. The other drawback is that the support firm is likely to take a break-fix approach in managing your networks. In any case, they are guaranteed monthly remunerations regardless of the amount of work they do.
What’s The Cost Of Outsourcing IT Support?
As you’d imagine, the cost of IT support per employee varies from one service provider or locality to the other. However, this is definitely the best and most cost-effective alternative, especially for small and medium-sized medium corporations.
Here is a list of some standard IT support services and their price ranges:
Network Management = $250 — $300 per month for each company.
Desktop Management = $49/ per month for each company.
Server Management =$200 — $250 / per month for each company.
The aggregate price will depend on the number of workstations and servers that your organization has.
Outsourcing IT support grants you access to better technologies and experienced personnel; this reduces the probability of incidents. Minimizing downtime and interferences automatically reduces the overall support costs. Most service providers give a discount of between 5% to 15% to their loyal customers.
Essential Questions To Ask When Calculating IT Support Cost Per Employee
What is the monthly rate?
In case of unforeseen incidents, which additional costs do you incur?
How often do you experience site interferences, and how much productive time is lost?
The cost of IT support per employee is not just about the monthly service bill you are invoiced. A highly efficient IT support company that charges a little higher is better than a cheaper one that leaves you with constant network issues.
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