IT Service Provider vs. Internal IT
For a typical small-medium size business, it can be (25%) – (50%) less expensive to partner with an IT service provider.
Advantages IT Service Provider
1 Reduced labor costs
Most business don’t need a full-time IT person, by going with an IT service provider you are only paying for what you need.
2 Access to qualified & experienced professionals (tier 1, 2, 3)
Gain access to workstation, network, server, backup, security, and advisory skillsets and knowledge. It’s costly and difficult to find one person with all of that experience.
3 Ability to controls costs
Employees come and go, and the economy goes up and down. We only charge you for what we are supporting, so as your business needs change, we change with you vs. the fixed cost of hiring an IT engineer.
Disadvantages Internal IT
1 Higher labor & technology costs
For most SMB customers, utilizing an IT service provider can be (50%) cheaper vs. hiring. You can’t just compare the cost of the person, you also need to purchase internal applications, software licenses, etc.
2 Lack of support
The risk of not getting support if your IT employee is sick, on leave, vacation, or simply doesn’t have the technical depth to deal with the issue effectively and efficiently. Time is money.
3 Your IT knowledge leaves the door when your employee does
What happens when your internal IT person decides to leave the company? You must deal with the time and money of recruitment, the risk of loosing all internal knowledge, and the impact to your business and security.
Labor
Managed Service Provider (MSP)
$61,560/year
Access to Tier 1, Tier 2, Tier 3, and Technology Advisory resourcesInternal IT (1 person)
$52,270 - $90,520/year
US Bureau Labor median wage (Computer Support Specialists ~$52k; Network & Computer SysAdmin ~$90k)Employer costs
$0
Included in the above cost$5,227 - $9,052
Federal & local employer taxes and healthcare benefits assuming ~10% of labor costsTechnology
$0
Included in the above cost
Note: Typical IT service offering for 50 workstations/users, 1 server, 1 office network, up to 1TB of server backup storage, advanced phishing and spam protection, Microsoft 365 backup & recovery, DNS filtering, and Managed Detection & Response
