Will you give up service if you outsource IT to a virtual team? I mean, there’s something to be said for having your IT staff in the building… right?
We’ll tell you what can be said: “It’s more expensive and you get less service.”
Here’s a look at how you can actually save money and get more value by moving to a virtual team.
In-House Employees are Expensive and Inefficient
People who are hesitant to outsource IT often have an in-house team or have almost always had an in-house team.
This is sort of an old-school way of looking at it. They may feel like there is something to be said for having someone under the same roof. You can train them and immerse them in your company culture.
That makes sense when you hear it, but that argument starts to fall apart when you start to add up all the extra expenses that go along with a full-time employee.
You have to pay their salary, of course. But you also have to pay for benefits, taxes, training, equipment, vacation, maternity leave, and bonuses.
All-in, a full-timer will typically cost you 25-40% more on top of their salary. The average IT worker makes $80,000 a year, which means they could end up costing you more like $112,000.
How Much of This Money Actually Goes to Your Network?
When you do all the math, you start to see how little of your IT spending is going to actually maintaining your network. However, when you outsource IT, all of your money goes towards actual IT activities and projects.
Another thing you don’t have to worry about is turnover. If someone leaves or is let go, you now have an urgent talent gap you need to fill. This is not a role you can wait 2-3 months to fill to make sure you have the right fit.
Often times, you’re urgently scrambling to find someone who can step in (like, tomorrow) and save your network. And unless you’re an IT expert yourself, you’re never 100% sure what you should look for.
This process is stressful and expensive. It’s been reported that it can actually cost you up to the equivalent of 9 months of the position’s salary in recruiting and training costs.
That means you’re spending $60,000 to replace that $80,000 IT worker before they have even logged on to your WiFi.
When you outsource IT, this is simply a problem you don’t have. If an employee at your outsourced provider leaves, you will likely simply get an email with your new representative’s name.
Your provider is the one who eats the cost of finding, hiring and training new employees. And they have systems and processes in place to make the knowledge transfer process as quick and seamless as possible.
Tools, Training, and Uptraining Are on You
Again, when you outsource IT, your provider is the one who makes sure employees get trained and uptrained constantly to keep up with industry standards.
However, if you have full-time employees, it’s up to you to make sure they’re staying on top of training and certification. Of course, it’s up to you to pay for it as well.
The same goes for equipment. You can’t have your IT employees using outdated tools or equipment. So the costs associated with normal wear and tear, or upgrades come out of your pocket.
At the same time, subscriptions and licenses can also be extremely expensive and need to get renewed every few months or year.
And this is not an area where one can get by with just paying the minimum. There is way too much at stake.
Let’s take cloud security for example. It won’t surprise you to hear that countless businesses are hacked every single day. But you may not know that 60% of them go out of business within 6 months of getting hacked.
The costs of a breach can be absolutely massive, and take months or years to recover from. And so can your reputation in the eyes of your customers. You may never get that business back if a customer’s private or sensitive information gets stolen.
If you choose to outsource your IT, you’re investing in professionals that will always have the latest tools and skills, without having to pay to maintain it either
IT Employees are Frequently Poached
If you work in IT, this is one job where you don’t have to worry about being unemployed, pretty much ever. Your skills are highly sought-after.
This means your IT workers’ time with you almost always has an expiry date. They’re going to be heavily recruited by companies and “headhunters” who may be able to offer them something sweeter.
As such, IT workers are always on the lookout for their next move upwards. They’re always going to have their eyes open for a position that pays 10% more, has more work-from-home days, or better benefits.
We’ve already covered the cost of replacing and recruiting above. But that doesn’t factor in the “surprise costs” you need to pay out to make sure you’re IT workers are happy, like regular raises and bonuses, lunch and snacks, or more.
The reason you’re reading this blog today could be that you currently have a role you need to fill, and you’re wondering if you have to go through all of the trouble and expense of replacing the employee.
It turns out you do not. There is a better solution when you outsource IT.
Are You Ready to Outsource IT?
ASG, Inc. was established in 2000 and is a privately-owned IT services company. We specialize in small business IT support for companies that range from 10 to 300 employees.
How can we help you? Click here to contact us anytime to find out.