How Much Should You be Spending On IT Support?
How Much Should You be Spending On IT Support?
We can all agree, these are dynamic and unparalleled times. Each of our organizations are having to evolve to streamline efficiencies but also enhance value. One great place to start reviewing your business strategy is in your company’s IT infrastructure and support services.
With IT being a business-critical function, it can be a daunting idea to hand the management over to a third party. How do you know the provider you choose is not only capable but also providing the comprehensive IT services you need at a good value?
How to Calculate the Right IT Budget For Your Business
If your company has been looking to outsource some or all of the current IT / computer network and helpdesk support you may have found that there are a multitude of IT support companies but finding the right fit for your organization is often more complicated than most people expect. And how do you calculate the IT budget that is right for your business’ unique requirements?
Have clear goals outlined
When considering making this adjustment, the first step is to have clear goals outlined on what you’re hoping to achieve with the technology in your business. What are the most important factors for you in the short term and the long term?
The IT support provider’s job is to then work with you to meet those goals while minimizing downtime across the company. There isn’t a magic number, but what’s most important is to know where the organization is headed and the priorities that are most critical to meet the business needs.
Understand the average IT industry costs
So how much does IT outsourcing actually cost? That will depend a lot on the industry that you are in and also the investments that have been made to build and maintain the current network. If pennies were pinched and corners were cut to set up the IT systems, then maintaining them will end up creating more frustration for employees and more money spent by management in finding ways to keep the systems patched and working together.
Banks typically spend around 7% of revenue on IT
For technology and telecommunication companies, this goes down to around 4%
Construction companies typically spend the least on IT, at around 2% of revenue
Don’t be surprised by typical recurring expenses
There are various recurring expenses that will arise as well.
License fees for subscriptions and software
·Domain registrations and security certificates
Programs that require continual updates like email spam filtering, antivirus and backup software
· WiFi systems
Make a plan to prioritize your hardware spend
Some good baseline planning on prioritized spending will help in the long term as well. Technology is changing and advancing all the time and doesn’t it seem that as soon as you get the latest phone or computer there is already another model being released to replace it?
Three things to consider as you plan on investing in IT hardware.
It may be more of an initial investment but plan to buy as a recent and good quality computer/printer/smartphone/etc. as you can afford. It will be supported by the manufacturer, be current specs and configured to manage the higher demands for processing speeds and storage, and it will take longer to need replacing.
Computers and printers and network hardware do not last forever. A good rule of thumb is to estimate roughly 4-5 years of use.
Chat with Zypes or your current IT provider on potential ways to move to cloud-based platforms that remove the need for your business to manage and maintain servers onsite.
Ask the right questions
If you already have an outsourced IT vendor, have you recently looked at the invoices for the expenses on services you’re contracted to receive?
Does your technical support vendor even show you the details of what you are paying for?
Do they track their performance and show what services that your business has utilized in each time period so you can see the value-added for yourself?
This is exactly the spot where the Zypes Managed Service model stands out and thrives the most.
The type of technology and dollar investments required can vary quite dramatically by industry. Optimizing the IT network backbone for your specific business is a balance of understanding and implementing best practices but more importantly, aligning with the strategic goals of the organization’s leadership team.
It could be necessary to adjust the IT budget and maintain the current equipment or shift the current infrastructure and applications to the cloud.
Technology initiatives that modernize workflows or automate systems can improve business capabilities and overall performance. Making this change requires skillful execution with minimal downtime or noticeable change for the employee end-users relying on their computers and programs.
Get Next-Level IT Support
We understand! Computer issues are some of the most frustrating and perplexing roadblocks that employees face in their day to day work roles.
We say it right up front in our tag line, Zypes is your IT solutions provider. Our company started off almost 20 years ago working with non-profit organizations in western Washington to determine the most cost-effective solutions for their IT infrastructures, from servers to cell phones. Our agreements are a-la-carte with services specifically selected to match the needs of each of our individual customers.
Zypes’ technical labor fees do not change depending on the work that is being done, whether it is configuring a firewall or phone system, server or router. There are no hidden costs.
If you are considering making a change or would like to know the IT support options that are out there for your organization, then give us a call today for a free network consultation and quote for services, 425-212-2244.