Business owners have to ensure all their processes are optimized to keep up their ROI in today’s competitive market. In this digital era, maintaining high-quality information technology infrastructure is at the top of the list. However, IT support can get expensive, and this leads business owners to start wondering what the average cost of IT support services even are.
According to one study, both small and large businesses spent approximately 2-7% of their annual revenue on IT-related costs.
Is it worth it for businesses to spend this much money on IT? Are there costs to choosing not to pay for IT support?
Let’s break down the average costs of IT support for small businesses to gain a better understanding of where and why businesses are spending their money on information technology
Average Cost of IT Support for Small Business
The average cost of IT support services vary from business to business based on a number of factors. However, there are some standard costs that every business may face.
According to the above mentioned research, an average of 2-7% of US business revenue goes to IT-related costs.
So if your business makes $600,000 a year, you can expect to spend anywhere from $1000- $3500 on your information technology-related costs every month.
Of course, this is just an average, as there is no definitive answer. Your personal IT support service expenses will vary based on your specific needs.
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What IT Support Costs Can Business Owners Expect?
There are many different IT services that a business may require for optimal performance.
The most common IT services used by small businesses include:
- Tech support
- Software development and updates
- Cybersecurity and data protection
- System monitoring
- Cloud services
Business owners will need help with everything from launching their website to keeping all their software up to date, so their users enjoy a seamless UX. This is where an MSP can step in and provide them with the help they need.
Average Cost of IT Support per Hour
IT companies and MSPs offer a variety of payment plans. Business owners should go with the most economical plan based on their personal needs.
One of the common pricing plans offered is an hourly rate. Some IT companies will charge by the hour and anyone who wants to ensure they remain within their budget should hire the company on a retainer. However, this is not ideal because if the retainer amount runs out, but an emergency arises, the IT company will not be able to help.
Hourly IT support payment plans are a better option for businesses that need help with small projects or are unsure of what IT services they require.
Monthly IT Support Contract Prices
Monthly IT support contract pricing is another option for business owners. IT support contract pricing on a monthly basis enables the business owner to budget effectively and still get all the services they need for the month.
If businesses are starting an IT project that has a clear timeline, then this flat-rate option is often the best pricing plan to go with. Under this same category, small businesses may also choose to go with a monthly fee pricing plan based on the number of devices and users per month that they have. With this plan, they can adjust the monthly price based on the growth or regression of their business needs.
Credit: Taylor Vick
The Two Main Types of IT Support and Their Costs
Let’s take a look at the two main types of IT support for small businesses.
1. Self-Managed IT Support
While many small businesses unwisely delegate their IT support tasks to whoever knows the most about technology, others opt to hire in-house. While this has some advantages, this option has several downsides that many small businesses can’t afford.
The first is cost. Hiring an IT support specialist can cost upwards of $60,000 a year, which may make them one of your highest paid employees.
There is also the issue of hiring. In all likelihood you aren’t an IT support specialist, so why would you know what skills and experience to look for in one? Having the wrong technician for your industry spells catastrophe for your business’s digital infrastructure.
2. Outsourced IT Support
For outsourced IT support for small businesses, the technicians do not reside at the same location as the business. These technicians are available for remote monitoring to help out with any information technology-related complications that may arise. This option is the most cost-effective and, in most cases, businesses end up spending $1000 to $2,500 a month on outsourced IT support.
This option may come with communication issues due to the different time zones. However, business owners that choose this option can navigate past this concern by ensuring they opt to work with an experienced outsourcing IT company that has a streamlined process and is great at communicating effectively.
What Is the Average Cost for IT Support Services for Small Businesses?
The cost of IT support for a small business will vary depending on the size of the business, and its specific IT requirements. Naturally, the larger your IT infrastructure is, the more it will cost you. Local self-managed IT support provides instant help during business hours but costs more. Outsourcing IT services to IT support companies costs less and gives business owners access to a larger pool of talent. However, since the time zones are different there may be communication complications.
At the end of the day, the cost of IT support for a small business varies significantly from business to business, and business owners can end up paying anywhere from $1000 a month to $3400 a month on average to have their IT support services covered.
Get Great IT Support Pricing at Outsource Solutions Group Today
At Outsource Solutions Group, we offer high-quality managed IT services and cybersecurity support services with all-in pricing. As a managed service provider, we aim to provide businesses with the best managed IT services available.
Our services include IT support, IT Helpdesk, Network Support, as well as IT consulting.
Visit our website today to learn more about how our IT and cybersecurity businesses can help your business thrive.
Featured Photo Credit: Christina @ wocintechchat.com