The cost of in-house vs outsourced IT

The Ultimate Guide

2Share

In an increasingly global marketplace, there are more options than ever for both prospective clients and employees. This can make it hard for growing businesses to keep up with both technological changes and increasing demands, without damaging profits.

As the rate of change in technology isn’t slowing down anytime soon, your office’s IT needs the tools and resources that will allow you to make those changes that will benefit your business’ long-term goals.

IT functionality is now a critical aspect of every business operation. Your communications, activities, and processes rely on a fast, well-designed infrastructure. And whether you operate in the public or private sector, a certain level of agility and resiliency is required. Otherwise, your business may find itself in a precarious, costly situation.

New data regulations, including sovereignty requirements, are constantly being created and adapted to address privacy issues, and software capabilities are continually evolving. Therefore, for most businesses, building a comprehensive IT solution is difficult and too expensive to accomplish in-house. You need to address certain key issues, but often times, your staff’s collective IT knowledge is unable to cover all of your needs.

Perhaps your IT manager fills that position in a part-time capacity or your IT personnel lacks experience in certain areas. In either situation, outsourcing specific IT tasks can often provide cost-effective solutions and create enterprise level IT for a fraction of the expense it would require with the same in-house personnel.

By examining the process and costs related to an effective infrastructure and then comparing the outsourcing IT support options that are available, your company can make an informed decision. And establish an effective solution for your particular IT needs.

Identifying the Key Factorsof an Intelligent, Secure, and Cost-efficient InfrastructureThere are several factors involved in building an infrastructure that meets the demands of current marketplace. Understanding these areas can help you identify any potential areas that are underdeveloped, or that need attention.

Service ManagementThis involves building actionable solutions that leverage your physical servers and your digital assets (Virtual Machines—if any) with heightened visibility, controls, and automation.

Asset ManagementDepending on the size of your organisation, your assets are those items that apportion large capital expenditures. Managing the lifecycles of your servers, desktops, laptops, and mobile devices effectively, from the initial purchase and provisioning, to upgrades and eventual replacement can help lower your business costs.

VirtualisationThis is particularly difficult to accomplish in-house because it requires specialised expertise. However, when conducted properly, virtualisation can improve the flexibility and delivery of shared IT resources, which translates into heightened speed, TCO, and resiliency for your business.

3Share

4Share

ResiliencyYour back-up and recovery solutions need to be implemented through a proper DR (disaster recovery) policy. It’s no longer “good enough” to be able to access data from a specific date or time; ensuring business continuity involves having a DR policy (with restore tests) in place that operates in real-time so that your business never experiences lengthy delays or costly downtimes. Denying that a disaster can happen to your business is a little like not wearing a seatbelt.

SecurityGlobalisation requires a comprehensive approach to data protection and IT security. Your business driven compliance and risk management protocols should be part of a governance framework, which makes it easier to identify and assess threats and vulnerabilities in terms of business impact, so that your company can better prioritise your security investment.

InformationYour infrastructure should be designed to manage and utilise information so that it is secure and available when you need it. Plus, you should have adequate plans in place to address future needs.

But even with a dedicated IT manager, or a small IT contingent, it’s difficult to establish this type of IT operability in-house. However, you don’t have to outsource your entire IT support team (although you can); with customised service, you can simply outsource the support areas you need, which will lower your expenses.

By the NumbersHow Outsourcing Works

One of the superior advantages to outsourcing some or all of your IT support is the ability to tailor a solution exactly to your specific needs.

Various service-level agreements (SLAs) can be designed, based on the number of users, assets, and other support required, so you can utilise as much or as little as is necessary. A specialist provider will have the IT support personnel to deliver whatever you need, depending on your current staffing arrangements. The flexibility of outsourcing IT Support can be illustrated by examining a few different, hypothetical business scenarios.

5Share

6Share

Scenario 1 An SMB with up to 20 active users

This business operates within tight budgets. The IT manager fulfils that role along with another critical business application (such as personnel management), or shares the IT responsibilities with a handful of colleagues. Although this arrangement presents a way to circumvent IT personnel costs for a while, eventually, business expansion will necessitate employing a dedicated IT manager, who will be able to devote full-time attention to the task. With this scenario, it’s difficult to know if the company is getting the most value it possibly can from its IT budget. However, an SLA can be developed that provides the necessary, highly skilled IT support service required, as well as an analysis concerning current IT functionality. Moving to upgraded software and business applications can improve productivity and empower staff members, which will orchestrate increased profits and business expansion.

7Share

The same budget constraints exist with this hypothetical company, but the existence of more users and more data makes it necessary to employ a full-time, dedicated IT manager who can deal with situations as they occur. However, the pressure on this individual can be tremendous. He or she will naturally want to ensure that the company’s IT infrastructure has been optimised to achieve the best results, but it’s not always easy to fulfil a position with so much responsibility.

Outsourcing can help the company’s IT manager by giving him back-up support for certain areas, when needed. He or she can call for assistance when a situation (or system) requires specialised knowledge.

Scenario 2A Growing Business with up to 100 users

8Share

Scenario 3An Established Business with 100-250 users

With more capital available, this fictitious company can afford a dedicated IT manager and a small staff of professional technicians. With personnel on-hand to perform the technical work, the IT manager is able to focus on developing new strategies for the maximum IT performance.

However, with this type of situation, it’s more cost-effective to outsource specialised roles, such as web developers, Linux (and other specific systems) expertise, or Helpdesk. The IT manager can optimise his or her budget, and deliver increased performances by allocating certain tasks to an outsourced team of professionals.

9Share

This level of user involvement requires a dedicated IT department, but this company suffers from a lack of infrastructure development, which makes it difficult to get the best performance. Like Scenario 3, outsourcing specialised services to an IT support provider helps to maximise the resources the company already employs. Entities like schools and non-profit organisations are able hire a Linux specialist or other professionals to deal with specific systems or tasks, and the collaboration helps to establish a functional, flexible, yet reliable IT performance, at a much lower cost.

With each scenario, outsourcing provides flexible options for any size organisation. And with the exception of the first company (without a dedicated IT manager), outsourcing doesn’t replace your current personnel, it simply empowers them and complements their expertise—allowing your team to focus on their strengths, so that you get best-in-class IT performance for your business.

Scenario 4A Company with over 250 users

Comparing Support Costs

Building a dedicated IT department is beyond the budgeting capacity of many businesses, but that doesn’t alter the need. This section will examine the various services and personnel that can be outsourced, and compare them with the expense of salaried employees with similar capabilities. That way, you can decide whether a fully sourced, scheduled on-site support service is right for you, or if occasional consulting and per-project support can maximise your network, security, and computer performances.

10Share

11Share

Helpdesk

By outsourcing your Helpdesk to a dedicated IT support service provider, your company achieves rapid, reliable problem solving abilities delivered by knowledgeable technicians. Get instant support for issues like:

• Internet Connectivity• Hardware failures and/or complications• Virus threats and malware exposure/infection• OS (operating systems) interruptions or failures• Remote links for users and office locations• Printing, email, and mobile device issues

12Share

Superior results from outsourcing means that 95 percent of all Helpdesk inquiries are dealt with immediately, 90 percent of problems can be solved remotely, and 80 percent of the calls are resolved in less than 30 minutes.

Remote access is conducted with secure connections anywhere you need assistance, at your home, office, or on the road. And with a full-service subscription, the Virtual Helpdesk can perform administration tasks like adding and removing users, altering permissions and access, and changing back-up requirements.

Every support call is routed to the appropriate expert and prioritised according to urgency, so that you get access to a host of experienced personnel. And, costs are based on your current user need. For example, your company can gain access to your own expert IT department for about £1 per day, if you need support for up to 10 users with one server.

13Share

Helpdesk Technicians

Outsourced technicians are able to assist users at their desktops and provide complex solutions for your specific network. With a variety of staff specialists, the technicians that you’ll have at your disposal will be able to offer instant, practical solutions for any of your IT related issues. With outsourcing solutions, you choose as little or as much service support as you need, and the flexibility of the service contract will allow you to add or subtract service according to your industry trends.

For example, if you operate a seasonal business, you can contract for extra support during the days and months that feature high volumes.

Based on National averages[1], IT user support technicians command annual salaries that range from £25k-£34k for first through third line support. However, that number jumps considerably (closer to £40k) if you require an individual who possesses skills for a range of technologies, which is exactly what many companies require.

14Share

An outsourced IT Management team can deliver state-of-the-art results for your business IT needs. Knowledgeable experts who understand the latest developments can offer strategic advice, deliver your project on- time and under budget, and counsel you concerning the most cost-effective hardware and software for your business.

These professionals are very expensive to employ in-house. An IT Manager earns roughly £49,194-£61,493, whilst Project and Programme Manager salaries earn £48,144-£60,180.

IT, Procurement & Project Managers

15Share

Other Professionals

IT Security experts, analysts, and application designers are also at your disposal when you outsource your support service. These highly sought after individuals earn approximately £46,197-£60,746 per year.

In addition to the regular onsite visits, your IT support contract can also be arranged to include after hours and urgent response service, and real-time monitoring. With early warning systems in place, your service specialist can avert dangers or head-off disasters before they strike and cause problems for your organisation.

Outsourcing your IT service allows you to employ the specialists you need at a fraction of the yearly cost. Consider the above example of 10 users and one server, by outsourcing your IT support, you can literally gain the services of a number of specialists for almost half the price of one in-house staff member.

Creating a Customised Solution

Your company’s IT functionality is crucial for business growth and performance. Outsourcing all or part of your requirements allows you to save on daily operating expenses. The money you save can be invested in new marketing strategies and other growth opportunities. Plus, your current personnel will have access to more dependable IT.

Essentially, you can have a team of IT experts at your fingertips by either contracting for a specific service specialist (such as a Linux expert, Helpdesk support, etc.), or you can invite a support provider to perform a comprehensive audit of your current IT capabilities.

16Share

17Share

The audit will provide an in-depth look into how your company utilises IT. With a detailed analysis on the state of your infrastructure, including:

• Servers• Email and messaging• Operating Systems• Filing and Print Devices, and other Assets (mobile

device management, desktops, laptops, tables, etc.)• Client Platform• Virus and Malware defenses• Disaster Recovery Policy• Data Security Protocols• Internet Access and Remote Working• Applicable Licensing

18Share

Your company can decide on the best support and infrastructure design solutions for your particular needs.

Outsourcing your IT to a professional provider offers your company superior advantages. Not only can you improve the efficiency and operability of your information systems, you can also empower your users with dedicated support that will help them perform their jobs better. And, outsourcing offers flexible options for that support. Complement your existing IT team, or simply let your provider become your experienced, professional staff of on-duty IT experts; either way, your company will be able to reach new goals and expand with the right IT support staff.

Next Steps

Contact Ushelp4it.co.uk

help4IT Limited5 - 11 Lavington StreetLondonSE1 0NZ

Tel: 0800 043 4448 | +44 207 653 9780

Email: info@help4it.co.uk