Oftentimes, companies hire a full-time IT employee, instead of contracting an IT support team. But is this always a smart decision? In this article, we'll analyze why businesses should consider outsourcing some of their IT needs, which can save money, time, and improve overall productivity.
Hiring a full-time IT person costs the company wages, matching FICA, and benefits. That total is usually greater than what a monthly contract with an IT provider would cost. Most small businesses do not have the need for 40+ hours per week to administer their IT work.
Consider this scenario evaluating business costs:
For the average business of 50 (or less) employees, a contract with an IT company for 10 - 20 hours per month for 1 year will usually fulfill a company's needs. If the contracted IT support costs up to $110 per hour, This works out to $13,200 - $26,400 annually.
The chart below shows a cost breakdown between hiring a full-time IT employee vs. outsourcing IT support.
According to a study by the Society for Human Resources Management, the average employer in 2017 paid $11.38 per labor hour for employee benefits.
You might be thinking, "won't I need an IT contractor for more than 20 labor hours per month?" Not necessarily. An outside team of engineers can often accomplish more tasks in a shorter period of time, and you only pay for more hours that are necessary.
Some companies might need more than one person, but not two. In this situation, again a contract for 20 hours per month, could provide for that “second person” (IT contractor) to assist in upgrades and new implementation projects, without the day-to-day support issues interrupting them. Once again, this “staff augmentation” can be provided for much less than the cost of two full-time IT persons.
Scenarios To Consider:
A full-time person may have done one or two server upgrades in the past year. At our IT company NE-INC, we've done 20 in the last 12 months. This is a very real statement about the real-world experience level of an IT provider vs. the experience level of an IT employee.
What do they do in their spare time? A full-time person who is not always busy will be spending time on the company payroll, surfing the web, and perhaps looking for their next job opportunity. This distraction can be counterproductive.
In addition, if the company becomes dependent on just one person for all IT support, what happens when that person is no longer there, on vacation, or falls ill? An “extra pair of eyes” is always a plus, when working on IT projects. A “lone wolf” approach may trip up even the best IT person, especially when they are tired.
Not all IT support companies are created equal. It's important to do your research, and consider a local IT company with good reviews and experience in your industry.
Our company NE-INC is based in Indianapolis, and would be happy to discuss how we can help achieve your business IT needs. Give us a call for a free IT evaluation at (317) 595-6387, or fill out this contact form.
President of NE-INC