Business + IT Insights

How Much Does Outsourcing Full-Service IT Actually Cost?

Posted by Dave Lazor on Wed, Jul 24, 2019


Outsourced IT Support ServicesChoosing the right full-service IT partner can be a confusing and intimidating process. Not only do you need to find a partner you trust, but you’re forced to navigate through different pricing proposals and options. We’re here to help make sense of the cost of full-service outsourced IT and explain what factors contribute to the expense.A full-service IT partner can be invaluable to the future of your company. They advise on technology strategy, take care of the daily details and upkeep, and react to any sudden emergencies. The right partner can scale your IT to support your business growth, as well as provide the technical expertise to protect your assets, without the costs of an in-house IT solution.

Each IT solution and the services provided differ depending on your company’s unique situation — which is why it can be confusing when you’re shopping around for an IT partner.

That said, there are some rules and standards around how IT partners price their services. This post will give you a ballpark formula to start assessing the type of costs you might be looking at if you are looking for a full-service IT partner.

Primary Factors IT Partners Consider When Pricing Outsourced IT

When determining the price of an IT contract, several factors come into play. These factors can include your exact organizations IT needs, the number of users, your current IT resources, as well as the specific needs of your team.

However, most comprehensive IT providers will start by looking at two overarching factors: headcount and infrastructure environment.

Headcount

Headcount is the number of computer users or workstations. Workstations are typically priced at about $25 - $150 each (per month), but the cost of workstations can vary based on the type of workstation and the complexity of the applications used.

Infrastructure Environment

A company’s IT infrastructure is the combination of servers, switches, wireless access points and printers. The cost of workstations and servers can vary based on the type and complexity of the devices and applications. As a general rule, servers are typically priced at about $100 - $350 apiece (per month). The wide range of cost difference has to do with how proactively or reactively the servers are supported.

Additional Cost of Full-Service IT Factors

While a company’s headcount and infrastructure environment are two primary factors that IT partners will consider when pricing IT costs, there are a number of other factors that need to be assessed. 

Number of Business Locations 

The number of locations can add complexity to providing IT service.

Number of Additional Appliances 

Infrastructure equipment like switches, wireless access points and printers create further complexity and time to support.

Complexity of How Employees Leverage IT

On the simpler end of the spectrum are employees who simply share files and emails, while on the complex end are businesses whose users regularly use sophisticated software applications, such as AutoCAD. 

As the complexity increases, the likelihood that more things will break or require technical support also increases. Your IT company will need to take on that risk, as well as make sure they have the right level of talent on board. 

Type of Industry 

Professional services, such as law firms or accountants, often value quicker response times and white-glove service than other industries, such as manufacturing or construction.

Scope of Service 

Traditional managed service providers (MSPs) aren’t all the same. Some provide more services, security and, frankly, peace of mind, than other providers do. While traditional MSPs simply watched over your IT, some comprehensive IT partners today offer more sophisticated security offerings such as scheduled phishing testing and training, and a more comprehensive suite of protective technology measures and solutions. They might also offer strategic, advisory or even CIO services as well.

Service-Level Agreement

When do you need coverage –– during normal business hours or around the clock? Do you require an expedited level of service to resolve issues more quickly than the standard service agreement? For instance, if you have a manufacturing plant with multiple shifts, you may need guaranteed support quickly and outside the bounds of normal business hours. 

What Managed IT Support Looks Like In Practice

Below are two general examples of what the cost of outsourced IT could potentially look like: 

A manufacturing company with 120 users, two locations, 21 servers and a fairly simple setup might be looking at a monthly contract of around $7,500

A design firm with 15 users, one location, five servers and a complex system that needs immediate resolution on any issues might be looking at a contract of around $4,000.

All MSPs are unique and no two are likely to quote you the same price. There’s a logical reason for this: they don’t all provide the same set of services and quality of care. You shouldn’t only compare prices when shopping around for a comprehensive IT partner. Find one who listens, addresses your needs and falls into your range of affordability.     

Contact us today to learn more about how your organization might benefit from an IT partnership with Lazorpoint.

Read The 4 Types of Information Technology Partners Explained for more information about how to differentiate between MSPs and other options.

Tags: Business Growth, IT Strategy, IT Budget

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