When major components of your business rely on technology, having a dedicated IT support team oversee your entire system is an absolute necessity. However, the cost of IT support can be steep, and understanding the factors affecting it can help you make informed decisions about your technology infrastructure.

The cost will vary depending on the type of IT support services you choose, but it’s important to consider not only the immediate cost but also the long-term savings and benefits. Let’s explore the cost of IT support and how managed IT services can benefit your business financially.

What factors affect the cost of IT support?

Before hashing out the numbers, it’s important to understand that there are several factors contributing to the cost of IT support. These include:

Service level

The scope and depth of services required can greatly affect costs. Basic support typically includes essential day-to-day solutions such as help desk services and routine maintenance but do not cover advanced needs. More advanced packages might encompass cybersecurity, network management, and incident response.

Businesses with more complex IT environments or higher security needs may require these specialized services, which means they’ll accrue greater IT support costs.

Contract terms and duration

The overall cost of your IT support will vary significantly depending on the structure and duration of your contract. By opting for a long-term contract, you can secure a lower cost per month or receive additional services at no extra charge. On the other hand, short-term contracts may come with higher monthly costs but give you more flexibility to switch providers if needed.

There are also specific terms in an IT support contract that establish service level agreements, response times, and resolution guarantees. Higher uptime guarantees and faster response times may have higher support contract pricing, but they can also prevent expensive downtime for your business, offsetting the costs.

Provider-specific fees

Each managed service provider (MSP) has its own support pricing model based on factors such as expertise and range of services. Some MSPs may charge a premium for their brand reputation and advanced services, while others may offer competitive rates targeting small to medium-sized businesses.

It’s important to do independent research and compare different providers to ensure you are getting the best value for your money. Reading reviews, seeking recommendations, and requesting detailed proposals are all effective ways to evaluate the quality of different providers. Remember, cost shouldn’t be the only determining factor when choosing an MSP. Consider other criteria, such as the speed and quality of their customer service and their experience in your industry.

Size and complexity of your business

Your IT environment’s size and complexity will impact the cost of support services. Businesses with multiple locations, larger networks, or more advanced technology infrastructure will require more resources to maintain and support effectively.

Moreover, the number of employees and types of devices used in your organization can also affect prices. IT providers may charge on a per-user or per-device basis, so the more devices and users, the higher the cost.

How much do different types of IT support cost?

There are different types of IT support options available to businesses, each with its benefits and limitations. Understanding the cost of these options can help you make an informed decision on which is best for your business.

In-house IT department

Creating an internal IT team involves substantial upfront and ongoing costs. You have to provide salaries, benefits, and training for IT staff, which starts at $50,000 per year for entry-level positions, and significantly more for senior roles. In fact, according to Indeed, companies in Illinois may spend up to $90,000 annually for IT support technicians.

Additionally, there are costs for office space, equipment, software licenses, and continued professional development. While this option provides dedicated, on-site support, it is often the most expensive and resource-intensive approach.

Break/fix service contractor

Break/fix services involve hiring contractors to address IT issues as they arise. This model charges based on the time and materials required for each job, with rates ranging from $100 to $200 per hour. While this option can be cost effective for the occasional glitch or crash, it can become expensive and unpredictable if issues are frequent. Complex issues such as ransomware attacks may also take a long time to resolve, which can quickly rack up costs.

What’s more, this reactive approach often leads to longer bouts of downtime since the company has to wait for the contractor to arrive and resolve the issue. As a result, productivity suffers and the business may start hemorrhaging money from one tech problem.

Managed IT service provider

MSPs offer a proactive approach to IT support, monitoring and maintaining your systems 24/7 to stop issues at the root. They may also provide additional services such as remote help desk, on-site support, cybersecurity, cloud support, data backup and more.

MSPs typically charge a flat pay-as-you-go monthly subscription fee based on the level of service needed, ranging from $100 to $300 per user or per device. For a small business with 20 employees, managed services providers can charge anything from $2,000 to $6,000 per month, which adds up to $24,000 to $72,000 annually. While this may seem like a significant investment, businesses are getting not just one employee’s worth of IT expertise but a full support team. This option therefore provides the best value for businesses seeking to optimize their IT operations and mitigate risks.

What are the average savings for small businesses using managed IT services?

When comparing the cost of partnering with managed service providers to that of maintaining an internal IT department, the savings can be substantial:

  • Staffing costs: Salaries for full-time IT staff, including benefits and training, can be a significant expense. However, you don’t have to worry about these costs with an MSP, as their fees only include technical support services. In other words, the IT technicians and engineers are already under the MSP’s payroll and work as an extension of your business at only 2% of the monthly cost of an in-house IT employee.
  • Reduced downtime risk: Today, businesses can lose up to $9,000 per minute of downtime. That’s $540,000 per hour. Fortunately, MSPs take a proactive stance in detecting and mitigating potential IT issues before they occur, minimizing the likelihood of downtime. Even if a problem does occur, MSPs charge fixed monthly fees, so you won’t be unexpectedly hit with additional costs for emergency troubleshooting services.
  • 24/7 assistance: With an in-house IT team, you will only receive support during business hours, leaving your company vulnerable to after-hours and holiday emergencies. On the other hand, MSPs offer round-the-clock remote monitoring and support without having to pay for overtime or grave shift work.
  • Scalability: Considering that businesses can grow or shrink at any given time, choosing an MSP over an internal IT team offers flexibility and cost stability. As your business expands, the managed services subscription fee simply increases in proportion to the growth. On the other hand, having an internal team means you would need to go through a complex process of recruitment and training to scale up, or risk being left with an oversized IT department if your business downsizes.

Getting dependable IT support is a money-saving opportunity that no business should pass up on. If you’re in dire need of an IT support provider that helps you save money, call Dynamic Solutions Group today. We’re a leading Florida- and Illinois-based MSP that can provide attentive, proactive, and comprehensive IT support without breaking the bank.