Businesses have a choice when it comes to their IT support. Employ a talented IT professional and keep things in-house, or outsource the support to a specialist company. If you choose the former, what are the costs you need to consider?
The average salary for an IT manager in the UK is currently in excess of the £38,000 per annum. And that’s before you consider the ‘hidden costs’:
- National insurance
- Sick pay
- Pension contributions
All of which have to be paid regardless of how busy he or she may be at any given time. Contrast this with using outsourcing your IT support where you have control of paying for only the services you require without additional hidden costs.
Recruitment & Staff Turnover
An ACAS report from 2014 suggested that recruiting a new employee can cost upwards of £30,000. This comprises:
- Recruitment agency fees
- Internal HR expenses
- Induction Programmes
And then there’s always the prospect that your IT expert may decide to move on, meaning you need to go through the process again.
However talented your IT expert(s) may be, technology advances at a rapid pace and there’s a need to keep up or get left behind. Investing in on-going training of your staff to remain up-to-speed is an additional hidden cost, which, according to Investopedia can be upwards of £800 per annum, not including additional software licences.
The Cost of Absences
Staff absences cost UK businesses in excess of £29Bn per annum. If you’re a small business with one in-house IT manager providing all the support, what happens if he or she gets sick or goes on leave? Having contingency support in place to cope with absences – e.g. hiring a temp – is going to add to the cost of the operation. Again, with outsourced IT support, absences are never an issue as there’s always someone in place to assist.
Have you hired the right person?
You want to get a talented professional on-board to support all of your IT needs, but are you and your HR team suitably versed to ensure you have the right candidate? Unfortunately, as in all recruitment, there’s the risk of hiring a recruit who may interview well but then fails to cope with the demands of the job. Which can be costly. A 2015 report suggested that on average, hiring the wrong person can cost more than £8,200. If you work with outsourced IT Support that aren’t up to scratch, as long as you’re not tied in to long term agreements,you have to power to easily switch supplier without major costs.
Coping with multiple tasks / issues
You may have an IT technician in-house who’s as good as they come in the industry. However, what happens when multiple issues arise all at once. Any glitches or downtime within a system are going to come at a cost, at an average revenue loss of 37%. Your internal IT may have to prioritise which issue to solve first meaning other potentially costly issues having to wait their turn.
Should there be an unforeseen event, a move to a new premises, overhaul and roll-out of new technology or a disaster scenario (from which an estimated 30% of business NEVER recover), is your IT professional able to deliver? Or is this a service beyond their contractual remit?
Restriction of service through job description
There’s always the possibility that the role of your IT pro may not cover your additional needs. This might bring additional costs in terms of:
- New training
- Contract re-negotiation.
Using a quality outsourced supplier can provide tailored IT solutions specific to all tasks in the business, with a suitably trained professional on-hand to deliver expert support. Which analysts suggest can lead to savings of up to 40% in IT support over a 3 year period.