Have you considered the IT costs in your business? As an Owner or Finance Leader, costs are an important factor in managing and scaling your business. You are tasked with the delicate dance of budgeting for internal resources and understanding when it makes sense to partner with outside experts. Let’s break down the numbers and create a cost-benefit analysis for the IT function in your business. Specifically, partnering with an IT Service Provider vs hiring in-house IT.
First, let’s understand the roles and responsibilities of each IT function in your business.
IT Roles & Responsibilities
- Director of IT
- On-site Presence
- IT Environment Ownership
- Quarterly Business Reviews
- Budget Planning
- Project Planning
- Resolution Management with 3rd Party Vendors
- Business Workflow Analysis
- Professional Services
- Product Procurement for Projects
- Design IT Projects
- Deploy IT Projects
- Network Administrator
- High-level IT tickets
- IT Infrastructure Essentials
- IT Tools Management
- Deploy IT Solutions
- Service Desk
- Technical Support
- New Product Procurement
- IT Documentation
Cost per IT Role
Next, let’s take a look at the average salaries and burden for IT roles to understand the yearly cost of an in-house resource. We’ve calculated a 30% burden to the company for taxes, insurance, and benefits.
Introducing Limetree Labs IT Pods
At Limetree Labs, we’ve structured our IT service teams into pods. An IT pod can service up to 1000 users. Due to the team nature of a pod, the expertise level is at a 10. Now, you can finally sleep at night. A minimum of four IT individuals are monitoring, optimizing, and securing your IT environment for less than the cost of an in-house IT team. Let’s take a look at the numbers.
As you can see, there are two tipping points in our cost-benefit analysis. Here’s an overview:
1st tipping point: 150 users
(Comparable cost for one Director of IT)
If you compare the two charts above, you’ll notice that right around 150 users is where you’ll start investing almost the cost of one Director of IT resource. However, by hiring an IT Pod, you’ll not only get the Director of IT; you’ll also benefit from the Professional Services, Network Administrator, and Service Desk roles. The entire IT pod for less than the cost of one high-level IT resource.
2nd tipping point: 360 users
(Comparable cost for a full IT Service Partner Pod)
Comparing the two charts above, you’ll see that once you reach 360 users, your IT investment will start nearing the cost of hiring each of the IT Pod roles in-house. Even though the costs are comparable, there are a few things to consider.
Take into consideration:
- Hiring time and effort
- Paying recruitment firms
- Finding qualified candidates
- Employee onboarding
- Employee churn
- Exposure and risk
Because of these factors, many businesses over 360 users still choose to work with an IT Service Partner. In turn, this mitigates dealing with the administrative headache in-house.
Another option for companies over 360 users is using an IT Service Partner for a portion of your IT needs. At this level, it makes sense—both in value and the bottom line—to bring on a partner for IT projects and support.
The Bottom Line
In conclusion, for any business with 360 users or less, the answer is clear. Find an IT Partner to manage your IT Infrastructure. Not only is the cost considerably lower, but the value is clearly evident. Access to an entire IT team or pod will ensure your IT environment is performing at its best. Your business downtime is minimal or non-existent. Your staff is happy and productive. And your bottom line is protected.
For organizations over 360 users, partner with an outside IT expert for projects and support. Your in-house IT, should you choose to go that route, can manage the high-level IT infrastructure and day-to-day maintenance.
The cherry on top is the ability to scale. You can’t hire 1/2 of an IT resource or eek by on 1/3 of a Director of IT. Managed IT services scale with you, so that you’re not paying more than you need—with the full value of an IT team.
If you’re ready to leave the hassle of managing IT behind, give us a call at 208-901-3350 or email hello@limetreelabs.com. We have an IT Pod ready to serve you and your business!
