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The High Cost of Staffing an Internal IT Department

By Chris Boudreau | August 8, 2022

A growing number of businesses now see IT as a strategic function. With more companies relying on technology, the IT skills gap cannot help but widen. Staffing an internal IT department with top talent will get more complex and more expensive in the future. Business owners and managers frequently must choose between hiring in-house IT personnel and contracting out their needs to nearby IT service providers. Each has advantages and disadvantages, but the cost is typically the deciding factor.

However, the price of employing a new employee can be higher than you expect. Intuit estimates the overall cost of hiring internal IT support workers, including all additional expenses, will be around $298,000. 

What does it cost to staff an in-house IT department?

An IT technician should run you between $30,000 and $64,000 a year, according to research from The range relies on several factors, including the technician’s level of expertise and the certificates they hold.

This sum does not include the price of payroll taxes, sick leave, vacation time, and health benefits. You must give your staff access to workspace and tools. Not to mention the time you will need to find, interview, hire, train, and continuously supervise this employee.

You must invest in your employees with a wide range of resources besides their income.

4 Costs You Don’t Have to Pay With Managed IT Services

Fortunately, managed IT services can reduce the cost of serving an in-house IT department. Here are four places managed IT services help in cost reduction. 

  • Employee Expenses: Costs associated with hiring an internal network administrator can be high. Current knowledge and skills are necessary for successful support and IT services.
  • Insurance, Paid Time Off, and Vacation Costs: In addition to the wage, there are other costs to consider. An example includes insurance coverage and holidays. Considering everything, hiring only one network administrator may cost you more than a typical salary.
  • Certifications and Ongoing Training: You need to ensure your IT personnel are knowledgeable about the most recent cybersecurity techniques. Cloud solutions, hardware, and software are changing. Your IT staff must undergo manufacturer training and maintain certifications to offer the most affordable IT solutions. These costs can quickly add up and include travel costs.
  • Management Expenses: Although your company may be lucrative, management probably doesn’t want to spend their time managing IT. Without staying current with the demands of modern technology, how can you? Can you tell if the IT team is performing their duties effectively?

Why is it more cost-effective to outsource your IT support?

It’s crucial to remember that, despite the overall rising IT spending costs, most CIOs are satisfied with IT budgets. In a recent survey, 54 percent of IT executives said their budget was sufficient. Why?

Because the economy of scale has boosted IT ROI in recent years, businesses can now obtain much more cost-effective prices for identical IT resources by outsourcing IT management to managed IT service and cloud providers.

How managed IT services can reduce costs for your business

  • Lower IT Costs: By choosing to outsource, companies can change unforeseen IT costs into dependable, set costs. As a result, you have extra money for your business’s other needs.
  • You get the services of a company: An in-house employee is bound by regular working hours, needs full pay, bonuses, and vacation time, and likely will occasionally call in sick. By contracting your IT operation, you delegate to someone else the managing, training, compensation, and other responsibilities that come with regular personnel.
  • Reduced Downtime: Downtime harms business. The productivity loss experienced by your company during Downtime is more expensive than the actual cost of the cure. Poorly maintained IT causes most downtimes. If a natural disaster or an IT-related incident disables crucial systems, employees won’t be able to do their duties, but your business will still incur regular expenses. Preventing Downtime is best done proactively, so keep a lookout for any system problems that could develop into complete shutdowns.
  • Develop Confident Security: The most crucial component of technology is security. As data grows and technology develops, there are more ways than ever for your IT network to be attacked. For instance, many people use cloud services these days. However, a remote server must be monitored regularly and evaluated to guarantee security. Your IT services ought to provide security services, give you advice regarding the legitimacy of vendors, and carry out ongoing risk analyses to find vulnerabilities in your network.

Need a cost-effective way of getting the IT service your business deserves? Then you need PartnerIT. Reach us via our contact form or call us at 519-772-2525.

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