Companies skeptical of switching to managed IT services are often hesitant to do so because they are weighing the costs of doing so. When companies consider switching to IT management services, they are often looking for cost savings or productivity gains. Here is how the costs stack up where internal IT departments versus external IT management services.
Understanding the cost of internally managed IT services
When you consider internal costs, you must take into account untrained IT professionals as well as dedicated IT professionals. According to Gartner, Inc., the average company spends $5,000 per year on a single PC. Companies spend on average $700 per user per month when ancillary IT costs are factored into the equation. With network-related costs factored into the cost per PC, that amount climbs to $8,500 per PC. Another survey indicates that company employees at Compass America spend about 30 minutes per week attempting to resolve PC costs for themselves or a co-worker. That’s the equivalent of 120 minutes per month of lost productivity for the average employee. Internal IT costs are difficult to contain, and productivity costs are difficult to forecast.
Switching to managed IT services
According to research by CompTIA, approximately 93 percent of businesses have stated that switching to managed IT services have exceeding their projected savings where IT costs we concerned. Forty-six percent of subscribers to managed IT services say they’ve saved 25 percent in annual IT costs. The CompTIA study states that 50 percent of managed IT service subscribers have been able to cut their costs anywhere between 1 and 24 percent.
Benefits of IT managed services
Controlling IT costs is one of the biggest challenges for smaller businesses. Companies do save when they subscribe to managed IT services. For a fixed monthly rate, companies can manage their internal IT needs. With these services, companies can minimize costs associated with diminished productivity where employees are required to devote time to troubleshooting. Leveraging a managed IT resource drives down costs, which translates into savings for businesses who would other wise spend nearly $10,000 per PC each year.
Managed IT services promote improved productivity. Companies lower the average cost per user for PC related expenses. Companies do save money in switching to the IT management services model. Containing costs and supporting productivity both contribute to the company’s overall profitability.