INFOGRAPHIC - Analyzing the Benefits of a Managed Services Provider vs. Internal IT Team for SMBs

November 20, 2019Homefield IT

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Analyzing the Benefits of a Managed Services Provider vs. Internal IT Team for SMBs

While some businesses prefer keeping IT staff in-house, careful analysis shows that outsourcing IT to a trusted partner yields a variety of benefits.

The IT budget at most small and midsized businesses is limited and often stretched too thin for comfort. With that budget, companies must ensure that existing technology remains stable, strategically adopt new software and hardware, and keep their systems safe with up-to-date cybersecurity protections.

Traditionally, that has involved hiring an in-house IT staff. But in today’s ever-changing technology landscape – is that still the best option for your organization?

Hiring IT Staff – Worth the High Cost?

Having an IT person on-site at your company has advantages, there’s no disputing that. But there are downsides you may not have considered.

First, few engineers can address all your potential IT problems by themselves. Secondly, becoming overly reliant on a single in-house engineer opens you to chaos when that person goes on vacation or decides to leave your company.

To get the maximum reliability and benefit from your technology – you’d need a team that can maintain, troubleshoot, and strategically plan your IT infrastructure. Procuring an IT staff with expertise doesn’t come cheap — and that’s if you can find them[i].

Average technology salaries in NYC

Beyond the Base Salary

As you know, the total cost of employing an IT staff member is much higher than just those figures. There are many additional expenditures to consider, including:

• Health insurance
• Unemployment insurance
• Payroll tax
• Paid time off
• Sick leave

The total cost of employing someone is 25% to 40% more than just the base salary.[v] This puts the compensation for any qualified IT team member at $100,000 a year or higher — and that’s just for one employee!

Want Specialized Expertise? That’s Going to Cost Extra – a Lot Extra

According to Randstad Sourceright’s 2018 Talent Trends research, 62% of human capital and C-suite leaders say that getting the skills that they require for their business is one of their top priorities[vi]. At the same time, finding staff who possess specialized IT skills is increasingly difficult.

Cloud skills are in high demand

Cloud leader Rackspace predicts that a lack of cloud talent will cost large companies up to $258 million a year.[vii]

According to OpsRamp, 90% of hiring managers think their digital skills gap is “somewhat big, quite big, or huge.” With nearly one-third of respondents citing cloud-native skills outpacing existing talent pools.[viii]

The dire need for cybersecurity talent is reaching epidemic proportions

According to research and advisory firm ESG, the cybersecurity skills gap has consistently gotten worse every year since 2015[ix]

The New York Times states that an estimated 3.5 million cybersecurity jobs will be available but unfilled by 2021, according to predictions from Cybersecurity Ventures and other experts.[x]

The Many “What Ifs” of an In-House IT Staff

Cost is just one of the many reasons that having a small IT staff is not the best way to approach technology. Several potential scenarios challenge and put stress on the in-house model.

• What if your IT guy goes on vacation – who minds the shop?
• What if they leave your company – how long will it take you to find and train a replacement?
• What if your company experiences a cyberattack? Does your staff have the skills and time to respond properly?
• What if you have a major IT outage that your in-house staff can’t handle? Where do you turn?

Each of these scary situations could cost your business a lot of money, while some could close your company down for good. These weaknesses, combined with the cost of staffing an in-house IT department, has prompted many businesses to seek an alternative.

There’s a Better Way — The Managed IT Services Provider

In recent years, the small IT staff has gotten supplemented – or in some cases, replaced – by the managed IT service provider (MSP), a team of professionals who provide comprehensive, proactive IT support for a single, flat monthly fee.

Maximize Reliability with a 24-hour IT Helpdesk

Never worry about your IT staff’s ability to deal with day-to-day technology management issues. Leading MSPs like Manhattan Tech Support have technicians available around the clock to quickly respond to IT issues, both big and small.

Some of the hallmarks of a stellar IT helpdesk include:

Proactive On-Site and Off-Site Support That Increases Business Efficiency

While MSPs do most of their work remotely from a specialized network operations center (NOC), the flat-rate support packages from Manhattan Tech Support include our team of engineers, technicians, and analysts coming onsite as often as you need. Having access to a full IT team builds greater efficiency in all your business processes.

According to global research firm IDC, companies lose between 20% and 30% of their overall efficiency due to inefficient processes.[xi]

A Strategic IT Roadmap

To make the most of your technology, you need someone to help you anticipate future technology trends and incorporate them into your network. Virtual chief information officer (vCIO) services from Manhattan Tech Support and other leading MSPs help you plan for the future.

vCIO service from Manhattan Tech Support can help ensure business and technology stay aligned

Flexible, Flat Rate Pricing – No Long-Term Contracts

Not only do reputable MSPs operate 24-hours a day, 7-days a week, they also provide a level of scalability and predictability that a single IT staffer can’t. We don’t tie you into any contracts – all services are offered on a month-to-month basis. We firmly believe that you should work with us because you see the value in what we do, not because you are tied to a long-term contract you can’t break out of. As a resourceful and reliable technology partner, Manhattan Tech Support promises to deliver excellence and efficiency – all for a single flat monthly fee.

According to CompTIA’s Annual Trends in Managed Services, 46% of businesses can cut their yearly IT budget by 25% or more by utilizing the services of a managed services provider.[xii]

Manhattan Tech Support – New York City’s Trusted MSP

Manhattan Tech Support helps companies discover higher levels of reliability, embrace the newest technologies, and defend themselves against looming cyberthreats. Whether you want us to support your entire technology as your outsourced IT department or need an expert to help you with monthly strategy or security concerns, we have a solution to help!

If you’d like to learn more about our services, feel free to contact us at 212-299-7673 or [email protected].

[i] https://www.techrepublic.com/article/report-most-companies-have-a-tech-skills-gap-but-few-have-a-plan-to-fix-it/

[ii] https://www.glassdoor.com/Salaries/new-york-city-chief-technology-officer-salary-SRCH_IL.0,13_IM615_KO14,38.htm

[iii] https://www.glassdoor.com/Salaries/new-york-city-director-of-technology-salary-SRCH_IL.0,13_IM615_KO14,36.htm

[iv] https://www.glassdoor.com/Salaries/new-york-city-network-engineer-salary-SRCH_IL.0,13_IM615_KO14,30.htm

[v] http://web.mit.edu/e-club/hadzima/how-much-does-an-employee-cost.html

[vi] https://content.randstadsourceright.com/hubfs/Global%20campaign/TTR/2019/report/Randstad-Sourceright-2019-Talent-Trends-Report-190118.pdf

[vii] https://blog.rackspace.com/258-million-year-cost-enterprises-lack-cloud-computing-expertise-says-rackspace

[viii] https://insights.dice.com/2018/12/03/cloud-skills-gap-companies-desperate-tech-pros/

[ix] https://www.esg-global.com/blog/the-cybersecurity-skills-shortage-is-getting-worse

[x] https://www.nytimes.com/2018/11/07/business/the-mad-dash-to-find-a-cybersecurity-force.html

[xi] https://www.forbes.com/sites/jeffboss/2016/11/01/5-ways-your-business-processes-could-be-hurting-your-business/#6e55361652e9

[xii] https://www.channelinsider.com/c/a/Commentary/Do-Managed-Services-Really-Save-Money-608662