Business Finances

The Cost of Outsourcing IT Support: Five Factors You Need to Know

5 min read

Outsourcing IT support to a Managed Service Provider (MSP) can provide significant business benefits, but understanding the cost implications is essential. In this guide, we’ll break down five variables that can affect your expenses.

Variable #1: Support Needs

Pay-As-You-Go vs. Prepaid Plans

Choosing a pay-as-you-go model means lower upfront costs but potentially higher hourly rates. This reactive approach activates only when issues arise, which can lead to higher costs, especially if emergencies turn out to be false alarms. In contrast, a prepaid support package provides options like blocks of hours or unlimited support. The key is to assess your consumption rate with an expert—whether it will be gradual or rapid—to determine the best fit for your needs.

Here’s an overview of different prepaid IT support cost options, each with its own unique benefits and considerations:

Service Level Agreements (SLAs)

The urgency with which you need issues addressed—captured in your SLA—can swing costs dramatically. The type of SLA you choose also directly influences staffing requirements for your MSP, affecting overall service costs. Generally speaking, the more immediate help you need, the more costs you can expect.

Legacy Systems and Specialized Equipment

The complexity of your network, especially with legacy systems or specialized equipment, can complicate support coverage. Many MSPs require additional service contracts for such cases, which can exclude them from unlimited plans or increase costs. To ensure seamless support and predictable expenses, keeping your systems and software up-to-date and under active service agreements is crucial.

Variable #2: The Scale of Device Management

Similar to bulk purchasing, the more devices a single MSP manages, the lower your per-device rate becomes. By consolidating all components—firewalls, switches, servers, desktops, and software subscriptions—under one provider, your MSP can ensure seamless operations, prevent disruptions and maintain a secure, interconnected network.

This approach also eliminates the inefficiencies and higher costs associated with having multiple companies manage different parts of your network. While specialization can be beneficial, it often leads to communication gaps and reduced integration, driving up overall expenses.

Variable #3: Bundled vs. À La Carte Services

Choosing between bundled and à la carte IT services depends on your business’s unique needs, priorities and desired level of control. Bundled services are often more cost-effective and simplify decision-making by consolidating your security needs into one package. However, they can also include unnecessary extras that inflate costs. While some providers may present these packages as inseparable, the right IT partner will deconstruct them to fit your actual needs.

On the other hand, à la carte options allow you to choose precisely what your business needs, giving you full control over IT spending and ensuring you only pay for what you’ll use. While this approach is empowering, transparent and customizable, it can expose you to price fluctuations based on an MSP’s priorities, vendor discounts and management overheads. Again, having the right partner can help mitigate these concerns.

Variable #4: The Location of Support

The location of your IT support team can significantly impact your service experience. Each option comes with distinct benefits and cost implications.

Local Support

Local support has the advantage of familiarity, with the person on the phone often being the same one who visits your site. While local MSPs may have higher rates to retain cybersecurity experts, many companies find the trust and personalized service well worth it.

Remote Stateside Support

Remote stateside support offers a balance between cost and familiarity. While not local, your support team remains within the country, reducing costs compared to local support. This model works well for businesses with a national presence or those comfortable with virtual interactions.

Offshore Support

Offshoring can significantly cut costs by leveraging skilled labor in countries like India. However, it comes with challenges like time zone differences and potential communication barriers. Additionally, businesses with strict regulatory requirements might face compliance issues with offshore support.

Variable #5: Risk Management

Businesses often expect their MSPs to manage most of the risk, assuming comprehensive IT protection. However, some MSPs may point out that their contractual obligations cover only a portion of the risk. Effective risk management requires partnering with an MSP that understands your unique needs and helps you proactively address potential threats.

For backup and disaster recovery, businesses typically choose between a hot site—a fully operational backup ready to take over instantly, minimizing disruption but at a higher cost—or a cold site, which is more affordable but takes longer to activate. We offer a balanced approach, carefully weighing both risks and costs to deliver a solution tailored to your needs.

Elevate Your IT Experience with Adoverse IT

Choosing the right partner is crucial for turning IT services into a strategic asset for your business’s growth and security. With our foundational bundle, you can custom-build a package of top-tier, transparently priced support, all backed by our US-based expertise and tailored to your needs.

Have questions? We’re here to help. Get started by requesting your free consultation today.