What Impacts the Cost of Outsourcing IT support?
Tech support gets costly. There are many factors impacting the overall cost of outsourcing IT. This is important to understand as you begin deciding between an in-house IT department or outsourcing services.
Internal tech support is attractive because you know you’ll have consistent access during business hours. The cost isn’t always feasible, however, if tech support services are rarely required and an annual salary is on the books.
After consulting with your budget, consider the many external forces, including the following.
Size of the company
The size of your company directly impacts the cost of IT support. More technology means more potential breakdown, more updates, more server maintenance, and more password resets.
The more IT support employees you require, the more you’ll pay for a third party service provider.
The size of your company may also impact the cost and contract type offered by outsourcing services. Tech services may leverage the fact that you have multiple departments to serve, and charge based on this.
Level of service needed
IT level is determined by tier, with tier 1 being the least intensive, and tier 4 the most. The level of service you require impacts cost because of the expertise needed, and the time it takes to solve said issues.
Here’s a run down of the basic tiers/levels of IT support. Your managed services provider may have additional tiers depending on their services.
- Tier 1: General IT help desk needs
- Tier 2: Advanced IT support
- Tier 3: Escalated IT support requiring expert attention
- Tier 4: All tiers by external forces (ex. Cloud support)
Check to see what services and IT tiers are offered by each potential services provider.
Outsourcing means sending requests and complaints to a third-party company. This company could be located anywhere in the world. The location makes a big difference in pricing.
Technical support solutions based in the United States are more costly than most international companies. This is mainly due to America’s high standards of quality and training in technical support. We also have unique minimum wage requirements compared to other countries.
You can save money by outsourcing to a company outside of the U.S. It’s important to factor in things like quality control, language barriers, and privacy concerns as you choose a location.
IT support availability influences price by calculating overtime costs and after-hours support structures. Businesses that provide technical support Monday to Friday 9 am to 5 pm are likely cheaper than those offering 24/7 support.
This is when determining customer demographics through early market research is key. Knowing what time zone the majority of your customers live in will help make decisions on availability.
Level of customization is another expense in IT support. Business owners requiring technical support for bespoke platforms or software may need extra customization.
customization is costly because your managed services provider needs to train staff or develop an exclusive team for your products.
General tech support and digital security are cheaper. Technical support services can use standardized practices and refer to precedented cases to tackle issues. This is less costly to them, and so less costly to you.
Long-term contracts tend to be cheaper than short-term contracts. This is because your commitment to the outsourcing partnership guarantees a set amount of income.
To make contracts longer, IT companies may create packages at discounted rates.
Have a company lawyer look over any contract, long or short, before signing. Some long-term contracts have financial repercussions for early cancellation.