According to poll results, almost half of businesses that use professionally managed IT services see a drop of 25% in their IT expenses. Of these, a further 13% reduced their IT costs by 50% or more. Considering that organizations can spend up to 11% of revenue on IT, this can translate into some serious savings.GET STARTEDStats like these are compelling. But how are these savings possible, and will they translate to your organization?
If you want to find out exactly how professional IT services can benefit your bottom line, keep reading as we dive into 7 unexpected ways outsourcing IT can save you money.
1. Proactive Measures
One of the big differentiating factors between IT professional services and in-house IT is that outsourced solutions tend to be more proactive.
When you hire a professional IT service, it is their job to analyze your IT systems. They are responsible for future-proofing them and ensuring that upgrades will be compatible with other systems and solutions for as long as possible.
After this, a good MSP will take continued proactive care of your systems through remote monitoring.
An IT department, on the other hand, typically operates on what's known as the break/fix model. This means waiting until something breaks or is non-functional until implementing a fix. This approach can lead to increased levels of downtime, compromised security, inefficient systems, and increased costs.
2. Access to Cheaper Solutions
When you utilize professional IT services, you'll be able to take advantage of economies of scale you wouldn't likely be able to access on your own.
Managed service providers can secure scale related discounts on IT-centric tools and solutions. These savings generally filter down to their clients as well.
3. Your Variable Costs Will Go Down
Another perk of professional IT services that'll make any business owner or IT manager happy is reduced variable costs.
IT spending is typically not cheap, and variable costs can often throw an IT budget way off track, thereby impacting other areas of operation.
With professional IT services, you can enjoy the benefits of fixed costs, which are far easier to budget for.
4. More Deductible Expenses
While professional IT services can significantly reduce expenses, they also increase deductible expenses come tax time.
When it comes to IT spending, a lot of hardware outlays are classified as capital expenditure. The components become assets of the business, and a certain portion of their value can be written off each year as a depreciation expense.
Accurately keeping track and accounting for IT-related depreciation can become tricky, especially when it comes to intangible assets such as software.
On the other hand, if you engage professional IT services, the cost of this falls as an expense. It can simply be written off against your profits, giving you reliable and simple tax savings.
5. Fewer Staff Overheads and On-Boarding Costs
Another impactful way professional IT services cut on costs is in regard to staff overheads and onboarding costs.
The SBA estimates that staff cost companies between 1.25 to 1.4 times their net salary once employment taxes and benefits are factored in. Besides this, every employee also triggers a number of onboarding expenses as well as hidden costs such as office space, cleaning expenses, etc.
By outsourcing some or all of your IT functions, you can significantly save on these sneaky areas of expense, as well as training costs.
6. You Never Have to Pay Overtime
Depending on the nature of your business, you might need to have an "always-on" approach to IT roles. System downtime can result in significant losses and can impact productivity heavily.
If you have an IT issue, IT staff may need to work around the clock to resolve it. This can then lead to overtime costs.
With managed IT services, you can avoid this as most reputable services will supply 24/7 support. Besides negating the need for overtime costs, 24-hour support also means that issues can be fixed a lot faster. Professional IT services can dedicate entire teams to your issue, ensuring that you can get back online in a minimum amount of time.
7. Professional IT Services Guard You From Expensive Security Breaches
Security breaches are an all too common threat, which isn't likely to get less any time soon. Besides being highly inconvenient and stressful, security breaches are also expensive. In fact, so expensive that 60% of businesses are forced to close within six months after an attack.
This is actually not all that surprising. According to research, cyberattacks now cost SMBs an average of $200,000. What's more, 43% of attacks are directed at small businesses, and only 14% are prepared to defend themselves.
Cybersecurity is an ever-evolving field and one which you need to keep tabs on if you want to implement a thorough defense. Professional IT services are equipped to handle all areas of security and can render you almost impregnable to attack. It's their job to stay on top of current developments and solutions, and a good MSP will have extensive experience in comprehensively tightening up cybersecurity.