In today’s uncertain economic climate, there is one certainty. You need to control costs. The “traditional” costs to be cut first are training and marketing (although we never recommend cutting these costs), but have you considered your IT support provision? If you have an internal IT department, there is a good chance that you can save significant amounts by outsourcing your IT support. Let’s look at how to assess whether to remove the costs of internal IT staff, and improve the quality of the IT support your team gets.
What is the Total Cost of your IT department?
First and foremost, work out their salary bill. A fairly simple calculation, but don’t forget to add Employer’s National Insurance and pension contributions. IT Manager salaries in London range from £45 – 65,000 per annum at the moment. If you have a team, the IT technicians are probably on around £20-25K each. Add something on for managing the team too.
- IT Manager (total cost: £73,974), plus
- IT Technician (total cost: £27,704)
- Total Spend: £101,678
2. Office space
Even if all of your IT is cloud-based, your IT department are still taking up space in the office.
3. hardware and software
Everyone needs some IT hardware, although the IT team always, somehow, has a higher spec than most others. Licenses for automation and monitoring tools they will be using quickly add up too.
We mentioned in the 1st paragraph that this cost shouldn’t be one to be reduced. However, training for IT staff is rarely cheap, but is absolutely essential. It also takes them out of the business for days at a time.
Add up all these costs: what does it come to?
Why have internal IT?
The normal answer to this question is so that you have someone always available to solve IT problems. But unless you have at least three people, this isn’t strictly true, is it?
One IT Manager
- They have holidays, sickness and training days
- Other staff members are using them at the moment
- They’re in a meeting with a supplier
- If you’re working out of normal hours, they won’t be available until the morning.
Of course, if you decide you needed your own IT staff, you need to have two, simply because of reason one.
Two IT staff
- When the first one is relevant, pick one of the others….
Why you should outsource
- Your available support hours can be up to 24/7. You no longer have to put up with normal office hours.
- Greater knowledge available to you. IT support companies look after 1,000s of users across multiple products, both on-premise and in the Cloud. They are dealing with large numbers of support calls every day, so know the products inside out.
- Strategic support available. Highly experienced IT Managers, able to provide strategic IT advice that supports your business goals, are rare – and expensive. Part of the role of any IT support company is to provide the right advice and support to ensure your business can achieve its goals.
- They’re at the end of the phone. Particularly whilst many of your team are currently remote workers, working from home (including the IT staff), they cannot have one of the IT team looking over their shoulder whilst they are helped to solve a problem. Remote support tools, such as Autotask and then unified communications tools make screen sharing simple, so you have, virtually, someone to look at what you are doing and provide the guidance you are looking for.
- Buying power. Because IT support companies are regularly buying for their clients, their buying power will be better than yours. Take advantage when you need new laptops etc.
- Improved Security. IT support outsourcers will have assessed, and used, a range of IT and cyber security tools so they know which are the right ones for your organisational needs.
- Focus on your business. More than ever, you need to focus your energies on your business. Outsourcing means you won’t get distracted by IT.
This may seem callous in a time when large numbers of redundancies are being made. However, managing costs is something that is even more important now. If you are looking at ways to reduce costs within your business, and to improve your IT provision, give us a call: 020 7227 9700.