The Real Cost of Outsourcing IT vs. Hiring a Full-Time IT Manager

As an SMB owner, making sure employees have access to the documents and applications without interruption is important for productivity. Part of your journey to maximizing productivity might have led you to look at the pros and cons of outsourcing IT versus hiring manager.

Until now, you’ve probably been solving the IT problems all by yourself. Only because you didn’t have it in your budget to pay the high salary of a full-time IT manager. In general, most companies that have less than a couple hundred employees will find it’s not cost-effective to hire a full-time IT manager. If you hire a full-time manager, you may not have the resources or the needs to keep them busy all day every day. In fact, outsourcing your IT work is far cheaper and requires less work on your part.

Gain Expert Help With Outsourced IT

Just like you don’t do your own accounting or handle your own legal matters by hiring professionals, you also need your network maintenance to be handled by a professional. Outsourcing IT services brings you the professional help you need with the flexibility you want.

With outsourced IT, you can have the help of IT experts you wouldn’t normally be able to hire. Outsourcing IT lets you gain the resources and expertise from IT managers you’ve always wanted, only when you need.

Before moving for moving forward with outsourcing IT, we highly recommend that you educate yourself on the business models of the IT industry. It’s important that you have a firm understanding of the break-fix model versus managed IT service.

Save More With the Right Outsourced IT Arrangement

When comparing both models, you’ll find that the managed IT services model will cost you less over time than the break-fix model when you factor in the cost of your time and employee productivity.

Your business will benefit from regular network maintenance which helps ward off cyber threats as well as a strategy that focuses on preventing problems rather than cleaning up messes after the damage is done to your business.

As a business owner, you want to keep your team as productive as possible. However, the break-fix model causes breaks in productivity and can be costly as you may pay a premium to get yourself back up. This leads to a major conflict of interests between you and your IT firm.

Under a break-fix model, IT consultants get paid hourly. Therefore, their business succeeds more when your computer network loses stability. Sometimes, it could take more than one attempt to resolve a problem. In the end, you, the customer, end up taking the risk of learning curves, inefficiencies, unforeseen circumstances and outright incompetence.

The problem with the break-fix model is: The more problems you have, the more companies profit off of you. If you have a problem, it’s a given that you’ll lose some productivity. However, that downtime could be stretched out by the IT consultant if they send a junior technician. This could double to triple the time it takes to resolve a problem when compared to a senior technician. IT consultants working on a break-fix model don’t profit from good time management or being efficient. They look to get as many hours as possible on a project or problem.

If your IT consultant is running an honest business, they should do their best to resolve your IT issues in a timely manner despite being in a break-fix contract.

The second problem created by the break-fix model is a management problem. Not only will you be paying a premium to fix your problems, you’ll also need to keep track of hours worked on fixing the problem so you aren’t overbilled. How will you go about that? Outside of standing over the technician’s shoulder the whole time, which takes time out of your or your team member’s day, there isn’t much you can do. Without knowing if they really worked the hours they claimed, you have to completely trust that the company is 100% ethical and accurately tracks their hours. On top of that, budgeting will be almost impossible as your IT costs will vary greatly on a month to month basis.

Want to know more about how managed IT services can benefit your company? Get your free network assessment today.

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