For a few reasons, many business executives have the wrong idea about the cost of managed IT services. They sometimes think their budgets aren’t big enough, or it won’t get them the coverage they need.
We’re here to set the record straight.
Managed IT service is affordable – so much so that you simply cannot afford to discount it altogether.
Think of Managed IT Service as Insurance for Your Business
Small- and medium-sized businesses often cite budgeting concerns as the main issue when choosing to forgo managed IT. But many fail to realize there are customized solutions designed to fit every budget.
Many providers offer pay-for-play bundles designed to deliver the services they need with the latest advanced technology at an affordable price point.
Some businesses actually realize cost savings by choosing to outsource – notably the specialized and non-core functions that enable their IT organizations to focus on their primary goals and objectives for the future.
Others relish in the fact that their IT organizations no longer have to stay on top of the ever-changing technologies, leaving that charge to the professional providers on the front lines.
Having someone overseeing your network 24/7 also breeds tremendous comfort knowing your most valuable assets, your network and data, are secure. That comfort is priceless.
The Opportunity Cost and Risk of In-House IT
Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. In this case, businesses that choose to keep their IT operations in house can have more risks to deal with over time, while outsourcing may yield better results.
Here are the risks and opportunity costs businesses face when choosing the in-house path:
- Higher costs: Your IT budget can get out of hand and waste money on unnecessary services and products.
- Potential for unsecured networks and data loss: Your IT staff may not have the knowledge or time to constantly monitor and protect your network.
- Lack of professional experience: IT employees might not have enough experience with highly technical acumen needed to keep a network securely running 24/7.
- Lack of disaster recovery plans: If a breach or natural disaster strikes, your IT professionals might not have the knowledge to get your operations back online quickly.
- Time spent putting out fires: IT employees spend a lot of their time addressing ‘pop-up’ problems instead of concentrating on the overall health of your network.
- Dated technology not replaced: Some companies don’t make the necessary investments required to keep their technology up-to-date, and IT operations are tasked with fixing and patching outdated network systems.
Managed IT Shows No Signs of Slowdown
If you look at the size and characteristics of a business, these aspects tend to go a long way toward determining if managed service or in-house IT is ultimately chosen.
Larger businesses tend to keep their IT operations in house because they prefer to keep control of the technology implementation process as well as a tighter reign over their networks and data. But that doesn’t always equate to better security.
Many small- and medium-size businesses outsource their IT operations as there are less overhead and bandwidth expenditures to absorb.
The Numbers Don’t Lie
Over the last five years, the number of small- and medium-size companies choosing managed IT provider services has increased because of the cost savings and improved efficiencies that come with them. Over the next five years, this trend is expected to continue from $223 billion to $329.1 billion primarily due to a lack of skilled IT professionals, cost reductions, and IT budget cuts that will force organizations to seek help from managed service providers.
But all organizations must realize that choosing the right provider for their needs is essential. Failing to do so may result in service limitations and subpar management capabilities.
If you think your organization may benefit from IT provider services, feel free to contact us today. At Xceptional, we are happy to discuss ways to improve your network technology and security without adding additional resources to your IT organization.