It may seem strange to say up front, but we think that having a singular objective of reducing costs when engaging a managed service provider is a mistake.
An internal full-time IT support resource will cost in the region of £30k per year in salary, which after adding standard costs (NI, training, office costs, travel, computer, pension etc) gets towards a total cost of nearly £4k/month.
On average that IT person will look after between 50 and 80 end-users, which equates to roughly £60 per end-user, per month. Let’s say a highly efficient resource could cost nearer £50 per end-user, per month.
A managed service provider could cost you £40 per end-user, per month – which is a direct cost saving of 20%.
But that’s not the total picture.
For example: Your IT person is operating to his/her full capacity and will be in the office 230 days of the year, 7.5 hours per day. In comparison, a managed service provider is available 260 days of the year for 10 hours a day. That’s a 50% increase in hours covered and that’s a lot more satisfied internal users!!
If that’s not enough, don’t forget the additional value you get from a managed service:
- Delivery of a high level, consistent support level agreement (SLA)
- Supports all the services you need
- Able to flex as you grow
- Can support your future state not just your current state
- Frees up your team to focus on digital transformation and real business value
So, if you are considering a managed services contract, start with a budgetary figure of £40 per end-user per month in your head as a guide.
But we think you’ll agree that the real benefits are much more than a direct cost saving on your current state. That’s why a conversation at an early stage to go into the details is always helpful.
Save money. Improve your service. Focus your resource on delivering business value.