In finding a partner for managed services, there are a lot of factors to consider. Among them, managed IT services pricing remains a major concern—one that can make or break a deal.
For companies hard-pressed between financial constraints and the need to adopt a digital transformation plan, finding a managed service package that is fairly priced yet competent is a challenge.
If you’re an administrator or a business owner searching for the right managed service provider, here’s your comprehensive guide to estimating price ranges. This guide will help you set realistic expectations on managed IT pricing and help you make an informed decision as you find your MSP.
Managed IT Services at a Glance
Managed IT services refer to a wide range of outsourced functions, tasks, and capabilities entrusted to a third-party vendor instead of the company’s in-house IT staff. Some services that warrant managed IT services rates include the following:
- Firewall management
- Antivirus and antispam software deployment and maintenance
- Help desk support
- Data analytics
- Networking and infrastructure support
Service Level Agreements (SLA) usually stipulate the details of these packages. These service agreements note the type of services you receive. It also includes the frequency and extent of these offerings and even the guaranteed response time for each service they offer.
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How Much Do Managed IT Services Cost?
In 2021, tech think tank Gartner placed the global spending for IT services at about 1.1 billion dollars. That is further broken down to a cost per user or device per month, varying from $10 to $250 for managed IT services. That depends on the features and the company.
Understanding the particular services you need can help you assess your requirements as well as align and allocate resources. Pricing for managed IT services varies greatly depending on many factors.
A Simplified Managed IT Services Pricing Guide
Most MSPs offer a quotation-based approach to pricing, with the lack of standardization allowing for a wide range of services. Generally, outsourced IT services can be divided into the following tiers:
- Break-fix Services
Under this arrangement, your IT support provider only offers services as needed. In the event of downtime or a security breach, technicians from the vendor will offer the necessary repair or restoration service.
Usually, vendors offering break-fix services charge your company based on an agreed-upon hourly rate.
- Per User/Per Device
Some companies have an in-house IT infrastructure. Their additional IT needs can be met with a per-user or per-device arrangement. Usually, the cloud or on-site support services are priced based on the number of devices or users using them, with a fixed rate for every device or every user per month.
However, this is only recommended for companies with a rigid structure. Since their number of users or devices is less likely to fluctuate, they can enjoy a steadier monthly fee.
- Managed IT Services
If you’re looking to outsource the entire IT process to a third-party vendor, this arrangement is for you. Pricing varies, with both parties setting a per-month price baseline. It also usually outlines conditions for extra services and charges.
Generally, managed IT services cover services from the first two set-ups and more. Companies without in-house IT capabilities or those looking to entrust entire processes must let experts handle their IT needs. Doing so can result in greater cost savings over time.
The SLA also stipulates the managed IT services rates and other additional costs such as additional overhead based on the number of users. These rates are negotiable and can be adjusted after a predetermined period.
Credits: Tima Miroshnichenko
Factors to Consider in Finding an MSP
Note that different managed services pricing schemes apply. Yet, your search for an MSP can start with the three questions:
- Identifying your budget and resources
Understanding your capabilities can save you time looking for providers and assessing the associated managed IT services cost.
However, it is also important to recognize that finding a service package within your budget isn’t dealing in absolutes. Instead of disregarding services and features that are not within your budget, you can divide your digitization strategy into phases.
You can meet your urgent demands by staggering your enrollment into managed IT services. Optimize the managed IT services ROI you expect within a time frame.
By keeping the projected managed IT costs within your means, you can prevent overextending your company resources. You can invest it in other parts of the business or use it to immediately realign and recover in case something doesn’t play out well.
- Listing down the services you need
This is another indispensable concern, whether at a small business or a large company. Some companies have in-house IT teams that handle certain core functionalities such as server upkeep or cybersecurity features. In this scenario, they can tick off their in-house services in their prospective managed IT services price list.
For small businesses, however, it becomes a matter of prioritization. Here is where a robust digital transformation roadmap is necessary. Since most MSPs offer flexible remote support packages, they can easily upscale their plans depending on factors such as revenue or the projected number of users.
- Assessing the risks involved
Since digitalization efforts are often considered major investments, a poorly executed MSP subscription can cause serious drawbacks for the company.
Remember, the US Bureau of Labor Statistics notes that about 20% of businesses fail in the first two years, 45% in five years, and about 65% in the first ten years—with faulty infrastructure and investments.
By pondering the financial, technical, and possibly legal risks, you can be more prudent in making decisions. It can also help assess whether you’re equipped to shoulder risks, often proportionate with the promised returns.
In assessing the risks, using a managed IT services calculator can help. More importantly, some MSPs provide you with a clearer picture through a managed IT services ROI calculator, which gives insight into how long it would take to recoup your investment.
At its root, managed IT services should be treated with the same diligence as any other major investment. When done correctly, you can be assured of accelerated growth as you transition further into a digitized environment.
That is why choosing the right partner is of utmost importance.
You can enjoy increased uptime and productivity without worrying about downtime and external attacks by providing reasonably-priced services at arrangements that are amenable to everyone involved. Contact OSG today, and let’s discuss the services you need without breaking the bank.
Featured Photo Credits: Christina Morillo