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How much does Outsource IT Support cost?

Posted on 30th October 2017

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This Outsource IT Support Costing and Pricing guide is designed to help you develop and initial budget, as well as plan for the costs associated with Outsourcing your IT Support.

 Outsourcing IT Support Cost: A Couple of Things to Consider 

There are two things to consider when researching the cost of IT Support:

  • Are you looking to outsource the whole IT Support role?
  • Or are you looking for Outsource support to cover and assist your existing, employed IT staff?

In this article, I will take about the costs associated with Outsourcing your IT staff, and help you to get an idea of how much budget you will require. Keep in mind that these prices will vary greatly from region to region.

 Outsourcing Full Time or Part Time IT Support 

Outsource IT Support has a number of great benefits over employing someone yourself.

  • Absence due to Sickness or Holidays are a thing of the past. Your outsource IT provider should be capable of covering any absence. This has one exception, when you are dealing with 1-man-band IT firms where sickness or holiday's can become an issue.
  • Cost - You have a simple flat fee / or hourly/monthly cost for the IT Support functions. No National Insurance contributions or PAYE to arrange.
  • HR - No need for HR, only a simple contract. If you're not happy with your IT provider then you can change. It's not quite as easy to do that once you have employed your IT team, who have passed their probationary period.

 Hourly Rates for IT Support 

Rates will again vary by region, but from our experience there seems to be a distinct difference between cost vs quality, so please do keep this in mind when choosing the right Outsource company.

£25-50 per hour - These are typically smaller or less experienced, less qualified IT firms. These are great if you're looking for 9-5 IT support on a budget.

£50 - £70 per hour - This is a reasonable average for cost vs service. Don't expect the world from them and you won't be disappointed. Delay's will be expected and the service won't be perfect, but then if you're really on a budget then these would be better suited. 9-5 Support with a possible 24x7 Out of hours option might be available.

£70 - £85 per hour - These are the firms who have the staff, knowledge and expertise to provide a great service. They might not come cheap, but they will have your back. Here at Tekkers IT Solutions, we fit into this bracket. Contracted Service Level Agreement's (SLA's / How quickly do they respond) are met consistently, projects are well planned, executed and well through through. If you are a growing business, you will want someone in this bracket to help you grow with solid, reliable advice. 24x7 Support should be available with proper SLA's.

£90 - £100+ per hour - These are typically the bigger 'corporates', more designed for nationwide or global firms. They will typically be slower to react than the lower brackets, and typically not able to meet their SLA's as reliably as the next bracket down. Expect to pay these kind of rates for Consultancy for when you are looking for specific IT expertise on a project. These rates are also typically charged by London IT firms, or by IT firms providing consultancy to other IT Firms or departments.

The closer you get to London, then adjust your figures upwards accordingly.

 Other Costs for Outsourcing IT Support 

There shouldn't usually be any other IT Costs, and it should be clearly presented to you by each individual firm on how they work.

Aside from the hourly fee, you should be able to agree a fixed monthly fee that covers all of your IT Support requirements.

The only things that may be separate from these fee's are new requirements, such as projects or new equipment.

This typically means the support agreement will either be capped to a certain number of hours per month, or may be 'unlimited' with checks at regular intervals to ensure hours are not being abused, per say.

 What sort of service should I expect from Outsource IT Support? 

Outsource IT support should have a good system and detailed processes in place already to deal with the day to day support function.

Monitoring should be installed to ensure any potential hardware or software issues are picked up before they become a problem. For example, a server running low on disk space should be identified and an actioned upon before it runs out completely, thus keeping the business running efficiently. Anti-Virus and Windows updates regularly installed, email spam filters and backups and disaster recovery processes are all monitored to ensure

Reviews should be scheduled for both initially checking over your IT systems, to put a future plan of action in place, as well as regular catch-up meetings to discuss the on-going IT issues. Without regular communication with your Outsource IT, the two can quickly become separated with each side not knowing what the other one requires of each other, and will leave you starting to wonder what you are paying for each month.

Projects should be planned, designed, and delivered to full expectations. Depending on the project, if they are using their own expertise, knowledge and products then ideally they should be able to commit to a fixed fee installation. The number of projects I've seen go in from other IT firms where parts have been forgotten, or timescales have been underestimated - and then a large bill is handed to the client is far too often.

 Summary 

To sum it up, you should find that Outsourcing works out to be generally cheaper than employing someone either full time or part time. Many of the costs behind employing someone are hidden, whereas the costs for Outsourcing should be simple and known ahead of time.

Thinking of changing IT Provider? Then check out our IT Support Learning Hub for a wealth of information, including what to look out for when looking for an IT Provider and how much it should all cost. 

Be sure to check out the links below for other articles we've produced around the cost for IT Support.

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