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Finding a Technology Integrator, Managed Services Providers, Pricing, Tech Talk / October 2, 2019

How Much Does a Managed IT Service Plan Cost? Costs and Outsourcing IT Considerations

Managed IT as a Business Strategy

Utilizing managed IT services is now a proven, time-tested strategy for businesses that prefer to outsource their IT so that they can focus on their core business.

But for managed IT companies themselves, like TSAChoice, there are still lots of ways in which these services can be priced and delivered to customers most effectively.

We have spent years working with peer groups, doing lots of research, and listening to customers as we search for the right ingredients to make managed services an excellent decision for North Carolina and South Carolina area businesses.

We see generally see businesses using the Complete IT Managed Service Plan in two circumstances:

  1. To provide IT support for companies that don’t require a full-time IT Administrator.
  2. Businesses that have an IT Administrator but still need a deeper bench to support day-to-day items, monitor the network, and provide support to end-users when the IT Administrator isn’t readily available.

View the TSAChoice Complete IT Plan

Questions that Determine Costs of an Outsourced IT Team

Here are some of the questions TSAChoice IT professionals ask when pricing “Complete IT” contracts:

-How many user workstations are there?
-How many servers are on the network?
-How many physical sites (locations) does the business operate?
-Is Office 365 utilized?
-Which spam filtering methods are currently employed? What is needed?
-What kind of network security features are required?
-Is mobile device management a necessity?
-How are passwords assigned and managed with users?
-What flavor of back-up and recovery options are needed?

How Much Should You Expect to Pay for Managed IT Support?

Typically, we’ve found that depending on the answers to these questions, pricing (per user, based on about 20 total users) can range from $150 to $285 for a single location. Pricing can also vary based on the service level requested: Is 24/7 management a necessity? Or just during business hours?

Comparing the Cost of Hiring Versus Outsourcing IT Support

Of course, we realize that not all companies may benefit from third-party management of IT, but far and away we have seen that MOST companies do save money (and indeed time) in the long run by using TSAChoice to manage their IT.

If you consider our local averages for hiring IT people, considering experience and expertise a business should expect to pay an employee anywhere from $34,000.00 to $76,000.  In addition to those costs, your business incurs a burden rate covering items like insurance, social security, and unemployment, using a burden rate of 30% of the business cost increases to an average between $44,200 to $98,800 per employee hired.

For comparison purposes, we are going to use the 20 user example number as listed above, depending on your business needs the yearly cost would be between $36,000 and $68,400.  Utilizing outsourced IT also provides your business with a full team of IT engineers that carry diverse technology expertise, network monitoring, back-up testing, and patches.

If you would like to run the numbers for your business, give us a call, or click here to have a consultant contact you.

Click here to read more about what you should expect from a Managed Services Plan and when to choose that route.

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Filed Under: Finding a Technology Integrator, Managed Services Providers, Pricing, Tech Talk

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Corporate Headquarters
108 Asheville Commerce Pkwy.
Candler, NC 28715
828.254.4464

Greenville Office
25 Woods Lake Rd.
Suite 207
Greenville, SC 29607
864.288.4764

About Us

With offices in Asheville, NC, and Greenville, SC, TSAChoice has over 60 skilled professionals to provide customers a single source for a full spectrum of voice, IT, audio/visual, security and cabling solutions.

Learn more about us.

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