The Value of outsourcing IT..... part 1

Businesses are relying more and more on IT to:

  • Increase productivity

  • Increase efficiencies

  • Drive company growth.

Therefore having technical expertise your business can rely on is essential to the everyday running of your business.

But should you hire someone internally, or outsource to an external IT provider?

Let’s have a look at the cost of hiring someone in house (these are approximate and conservative figures):

Salary - £25000

Recruitment - £4000 (plus the time taken out of the business to recruit the right person)

Training - £2000 (plus the indirect cost of the person preparing and doing the training)

Office Space at £15/square foot - £9000

Equipment & Phone - £1000

Employers NI at 12% – £3000

Pension at 3% - £750

The total cost of employing that person is roughly £44750 which is £3729/month.

This is without factoring in any management time input for managing a junior person and time spent on professional development and appraisals.

This can be a large part of your wage bill, especially for a smaller organisation – even if you’re only planning to recruit someone part-time

So let’s compare that to the cost of paying an outsourced provider. The cost of outsourcing is calculated per computer and network that is managed. Therefore you would have to have a company of well over 180 staff for the benefits of having someone inhouse to outweigh the significant costs.

That’s without considering that you would probably need an additional 1-2 IT staff members to service that many employees.

If we break that down to per person:

A 100 person organisation would cost £37/person

A 50 person organisation would cost £75/person

A 25 person organisation would cost £149/person

and our prices work out significantly lower than that.

So yes, you can make huge savings outsourcing your IT, plus getting a huge number of benefits too.

What are the benefits of an outsourced provider? Find out in part 2

To find out what outsourcing IT in your business would cost please contact us and a member of our team will be in contact to discuss how we can help.

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