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How Much Should IT Support Cost?

How Much Should IT Support Cost?

As IT is such an important part of any business, you need to understand the cost and how it breaks down. Often companies aren’t aware of what their IT services are costing, and they don’t realize that paying an IT consultant is only part of their total IT cost. Other companies consider hiring an IT person to keep their tech up and running, and it can be hard to make these comparisons. Continue reading to learn everything you need to know about how much IT support should cost. 

Start by Knowing What You Need

Most businesses track their spending and the cost of operating. They are thorough, but they may not realize what they are spending on IT. They often have IT expenses mixed in with other categories. For example, their Internet bill may be under utilities, and they may have new IT equipment in the category with operating expenses. This makes it hard to get a complete picture of the actual IT cost. 

Another factor is the cost of not having technology up to date. If the website goes down, the business loses money. If the network has a problem, the employees won’t be able to do their jobs. It is important to make sure that hardware and software are up to date and functioning reliably at all times. The cost is offset by the revenue that is possible. 

The Cost of Developing an Internal IT Department

While small businesses might use an IT consultant or an IT support service, some businesses hire their own IT specialists. The average salary for an IT technician is between $45,000 and $55,000 each year. It is unlikely that one general technician would not be enough. 

Many IT engineers specialize, and they may focus on different areas, including cybersecurity, email, networking, infrastructure, and more. This makes it hard to find one person to do the entire job, so you would likely hire a team. 

Once you hire the team, you will need leadership for the team. This person will manage the team on a daily basis, and they also make sure that the department is operating efficiently. 

In addition to the IT team, it is necessary to have equipment, software, and someone who can advise on what would work best for the company. Most of the time, people hire an IT consultant who can make sure that the company has the tools it needs for the IT to function. These consultants cost between $1,500 and $3,000 each month. 

Finally, the company needs software that manages and monitors the company’s network. This includes everything from password managers and security monitoring to ticketing systems and Internet filtering. There will be a set monthly cost for each tool that you need. 

If you take these costs, you need to look at the number of people who work in the company. For a medium sized business with 40 employees, you might need an IT director, a user support technician, and an infrastructure engineer. If each one makes $50,000 a year, you are at $150,000.

Then, if you use the basic software and tools, it will run around $15 a month per user. This is $600 a month. You also have to factor in the consultant at $1,500 a month. This is a total of around $175,000 a year, which breaks down to just over $360 per user each month. 

The Cost of Managed IT Support

When you hire an outside IT support company, you are getting the professional experience you need. This is what they do, and they can provide you with everything you need. The question is, how much does it cost?

It is a sensible option for any mid-sized company. However, the costs can range depending on the vendor. You also need to look at the different service models that are available. There are usually three: retainer based, retainer plus monitoring, and fully managed IT.

1. Retainer Based IT Service

With this type of IT service, you normally pay for a specific number of hours, and then there is an hourly rate for anything over that. On average, you might pay $1,000 a month for 10 support hours, and then $125 a month after you use them up. On the surface, this appears to be the least expensive plan, but it can add up depending on your needs. 

2. Retainer Plus Monitoring IT Service

This type of service is a little more expensive, and it averages around $1,500 a month. However, it is usually limited to a specific number of hours, and you can run into the same issues as you do with the retainer based IT service. Often, companies that use these models delay upgrades and other solutions and try to work with what they have. This doesn’t pay off in the end. 

3. Fully Managed IT Service

Fully managed IT service is a great option for a lot of companies, as it includes most of the services you need. It includes everything from consulting and remote monitoring to help desk service, management, and the software and tools you need. This type of model is billed on a per-user or per computer fee each month. Normally, it costs between $100 and $225 per user or per computer each month. Of course, this number can vary depending on what you have, the level of security you need, and other factors. You will pay more in monthly fees, but you won’t be hit with additional fees when you use up the allotted time that is paid for. 

Final Words

When you are deciding how to approach your IT support needs, there are different options. Some companies hire their own IT team, and they try to do everything in house. For smaller to mid sized businesses, this approach can be expensive. As a result, they look to IT companies that can provide these services for them. If you use fully managed IT service, it usually costs between $100 and $225 per month for each user or computer. You can also use the retainer plan for a set monthly fee.