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How To Calculate Your Business’ IT Support Costs?
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How To Calculate Your Business’ IT Support Costs?

Business’ IT Support – The value of technology in the day to day running of any business is undisputed. It dictates the operations of your business, from sales to marketing, to communications. To remain relevant and competitive in their respective industries, organizations need to keep up with the continuous technological advances and ensure that their IT infrastructure is regularly updated. For a company to keep up with these advances, they need a dedicated IT department.

Tom Martinez with tca Synertech who services Grand Rapids MI breaks down the cost of quality IT support. Learn more about his offerings at https://www.tcasynertech.com/it-services-in-grand-rapids-mi/.

What is the Cost of IT Support?

The Cost of Internal IT Support: The cost of your internal IT support will fall into the following categories

  1. Hardware: This includes costs for the purchase and maintenance of computers, laptops, mobile devices, and storage equipment.
  2. Software: This involves costs for applications, programs, SaaS, and cloud-based computing services.
  3. Personnel: This includes hiring, training, remunerations, and benefits of your IT department.
  4. Interruptions: This includes costs for restoring operations during downtime.

Since maintaining a full in-house IT department is expensive, most small businesses rely on a small IT department. In most cases, their IT department doesn’t have the required expertise and resources to maintain their IT infrastructure and keep their systems updated. For this reason, small businesses are turning to managed IT services for their IT support.

For any business looking to outsource IT support, cost ranks high among their top considerations. Managed IT services is deemed cost-effective because you get expertise, years of experience in tech, and technology without the hassle of hiring a full-time in-house IT department. But what exactly is the cost of managed IT support?

The Cost of Managed IT Support

Business executives find it almost impossible to know how much IT support should cost. Whenever they ask this question, the answer typically is ‘it depends.’ Additionally, most managed IT support providers do not provide this information on their websites. When the executives make calls to different managed service companies, they realize that the pricing is not uniform. Having different pricing structures can be very frustrating as there is no online catalog to choose from or a one-price-fits-all formula. Plus, not having an exact number makes it harder to budget IT support costs for your IT needs.

The cost of managed IT support can vary significantly due to several factors:

  • The type of IT support you want; partial support or fully managed.
  • The location of your company.
  • Your exact business requirements.
  • The level of expertise you desire.
  • The current state of your IT infrastructure.

Managed IT Services Pricing Models

So, what exactly is the cost of managed IT support? The following are managed IT services pricing models that you can review as your starting point.

  1. The Per-Device Pricing Model: The per-device pricing template’s premise is to develop a fixed rate for every type of gadget supported in the client’s environment. The benefit of this pricing model compared to other managed IT services pricing models is that it simplifies the pricing format for your services and makes it easier for potential clients to give quotes and MSPs to demonstrate costs for prospects. It also makes it easier for the IT company to change the monthly service fee as the client adds devices.
  2. The Per-User Pricing Model: The per-user pricing model is somewhat identical to the per-device pricing template. The distinction is that the fixed fee is billed monthly per end-user and comprises support for all gadgets used by each end-user. These devices include laptops, office PCs, smartphones, tablets, and any other gadget that the company might use.
  3. Monitoring-Only Pricing Model: The monitoring-only pricing template provides system monitoring and notification. In this case, multiple different service levels may be adopted. This pricing model may apply to companies that are typically offered services such as; antispam and antivirus updates, backup monitoring, disk optimization, operating system services for a flat monthly fee.
  4. The Tiered Pricing Model: It is the most famous pricing model used by managed service providers. The principle is to build multiple bundled loads of services with each progressively costly service providing more benefits to the client company. The tiered pricing model provides the IT company and your company as the client the flexibility needed to implement a comprehensive managed IT solution.
  5. The All-You-Can-Eat Pricing Model: The all-you-can-eat pricing template is very alterable and comprises remote services, on-site support, and bench and laboratory time for an entire company at a fixed fee monthly. It also provides all-year-round services or support during specific hours or days of the month and bills extra charges for services provided outside these hours. This model’s main aim is to provide the client with the capability to budget for their IT support costs.
  6. The A La Carte Pricing Model: In the a la carte pricing model, the IT company provides services that address the company’s particular needs. These services could include data backup and disaster recovery and patch management. This pricing model gives clients the capacity to choose and pay only for the services they require. It also allows them to construct a customized package of IT solutions for their company.

Any certified IT support company should be very clear about their pricing structure. The services you will receive and the cost of these services must be documented in your contract.

It is also crucial to verify that your service agreement accurately states these services and fees before signing anything. The clarity of IT support costs is very vital both for you as the client and the IT company.

Technology solutions offer businesses a lot of benefits. They help improve communication, increase employee productivity, efficiency, and effectiveness, and ensure everyday business operations’ smooth running. Regardless of the type of IT support you decide to adopt, your decision should be based on how the IT support will impact your business.

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