How Much Does Outsourced IT Cost for Small Business?

Outsourced IT, or managed IT services, means placing some or all of your information systems in the hands of an outside technology consulting firm (or Managed Service Provider). In many cases, companies will outsource when they simply don’t want to shoulder the burden of technology in-house, or when they need to supplement the resources they have on-staff.
When it comes time to consider outsourcing, one of the first questions to come to mind—across all industries—is how much it is going to cost. It’s a question we at Optimal have encountered over and over again over the past two decades, and one we’re always happy to explore.
As you can imagine, there are a number of elements to consider when it comes to figuring out what a company’s specific investment will look like. Below we will walk you through the main components of your outsourced IT investment, along with the costs that are associated with each piece.

What are the components of outsourced IT for small business?

As a general rule, managed IT services are billed on a usage basis; this means that you pay for the services you’re actually being delivered, and that your provider is responsible for delivering those services to you.
Here are the main components of outsourced IT for small business:

1. Infrastructure Maintenance/Management. This includes server monitoring and alerting (including patching and health checks), workstation protection (including patching, anti-virus, anti-spyware, and so forth), firewall management (including configuration backups and firmware updates), and managed backup and disaster recovery

2. User Support. This can be on-site or remote, and delivered on an unlimited or hour-by-hour basis. When signing on for a support package, check to see if the engineers you’ll be working with have experience with your specific line-of-business applications.

3. Cloud Services. Cloud services can include file backups, hosted Exchange, or a full-on hosted desktop solution that removes both the capital expense and support burden of servers altogether; your provider will be the one responsible for the actual computing, security, and maintenance elements of your network.

4. Strategic Consulting. In some cases, a company will engage a CIO-level consultant to help vet and implement a new member management solution, to coordinate with multiple vendors for large-scale upgrade projects, and to generally help align their technology decisions with their business’s trajectory.

Generally speaking, managed service providers will allow you to subscribe to whichever services you need on an “à la carte” basis; if there are only certain gaps that you need to fill with outsourced support, you need not sign on for the entire spectrum of services.

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What is the average cost of outsourced IT for small business?

What you invest each month depends wholly on the level of service that you subscribe to. Here, we’ll use a 50-person company as a benchmark for what your costs may look like:

Business details:

  • 50-person company
  • 2 regional offices
  • 3 physical servers
  • 55 workstations
  • 800GB of data
  • Basic software needs
  • A few technical staff members, but no full-time IT team

Service level:

  • Complete infrastructure maintenance (3 servers, 55 workstations, 2 firewalls)
  • Comprehensive backup and disaster recovery (all 800GB of data)
  • Remote user support (all 50 users)
  • On-site support (2 half-days per month)
  • Strategic consulting (1 full day per month)

Likely Monthly Investment: $9,000
If this same association were to opt for a fully-hosted environment with an on-site component, they would be looking at closer to $10,500 per month for a hosted desktop solution (but without any more server upgrade projects to worry about…ever). Costs will also increase if your business is in a heavy growth mode, since your infrastructure will need to keep pace with your company’s changing landscape.
The price range is rather large, but so is the range of possibilities as far as service combinations and level of depth. Fortunately, we outsourced IT firms will remove the guesswork and provide you with a customized quote that details the services we recommend to suit your needs, and exactly what they will cost you each month.
Just ask!