One of the major benefits of using managed IT services is force count management. Having more employees than you really need is expensive. This is particularly true in professional fields like IT where expertise is valuable – and costly. Staff salaries are just the beginning. Just a handful of unneeded staff members could cost almost a million dollars a year when totaling all the associated costs such as:
- Benefits and 401k Matching
- FICA and Medicare taxes
- Training and Certifications
- Administration (HR, payroll)
The options that most managed IT service providers offer lets different organizations take a staffing approach that works best for them. It could be a robust staff to handle certain key operations where expertise is desired in-house while using managed IT services for certain IT operational facets and projects. It could also mean having a bare-bones staff in place and using managed IT to the fullest. Every business is different and each one can find the balance that improves IT performance while cutting employee costs.
Beyond saving on employee salaries, benefits, and taxes, there are also advantages and cost reductions in developing level, consistent staffing that using managed IT services allows. The total administrative costs related to hiring, matriculation/training, as well as handling layoffs when needed are difficult to calculate, but are certainly significant. Plus, lay-offs can increase a state’s unemployment insurance premiums and impact employee moral. Developing long term continuity with an expert staff while using outside resources to for peak staffing, project management/expertise, or even for more mundane or low priority activities can be good for cost and capability.
Managed services can also fill gaps in areas of expertise like security or compliance where a full time staff member isn’t required or where gaining a needed certification may be expensive. There is also the advantage of immediate availability with managed IT providers while the hiring process could take months. Then you pay for the services you need and use. There is no waste associated with an underutilized staff.