Is Outsourcing Your IT the Right Business Decision?

Small to medium sized businesses have the same needs as larger corporations for IT services, yet often lack the resources to hire them. Consequently, they often are barely getting by with someone who works for the company and knows just a little about computers (or someone related to the owners who fixes computers). They might keep the computers up and running, but do they really fulfill all the requirements of an IT department?

IT does more for a company than fix computers. They also:

  • Recommend equipment based upon requirements of the applications being run
  • Manage the network connections to ensure that it’s running and free of latency
  • Manage the security of the network
  • Issue credentials (Passwords and User ID’s for company information)
  • Monitor for intrusions and viruses
  • Maintain software updates
  • Advise management on productivity applications
  • Create an Incident Response Plan
  • Operate the company ‘Help Desk’

There’s no dispute that all of these functions are important, to varying degrees, to the small to medium sized business. Let’s look at the costs for a full-time employee.

  • Annual Salary: $60,000
  • Benefits, FICA: $20,000
  • Total salary and benefits: $80,000

Let’s now look at the annual cost of outsourcing.

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The Difference Between Computer Repair Vs. Outsourced IT

Last week I talked to a company that has been depending on computer repair services from a large computer retailer. The conversation went like this,

I asked “who do you currently use for your Information Services?”

“We use [so-and-so] when we have a computer problem,” the office manager replied.

“They cover all of your IT needs?” I asked.

The reply, “yeah, they take care of us pretty good.”

“I have one question. When they come out for a repair, do you notice that they recommend new systems a lot?” I responded.

“Yeah, but that’s because we have a lot of old equipment.” She replied.

“So what do they do for you for other IT services besides repair?” I asked.

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