In-house IT support was definitely a very sexy idea in the 80’s and 90’s when having an IT guy on board made good sense. Back then it was probably cheaper and easier to have someone sitting in the office waiting for a call. The reality is that changes have occurred in the IT landscape and managed external support is making more and more sense strategically and from a cost perspective. We explore some of the issues to help you make a better business and resource decision.
So what does poor in-house IT support look like?
- Provides reactive support rather than proactive. Waiting to react to tech problems or having to wait for outside consulting beyond the depth of the in-house IT department can cripple a business.
- According to the Internal Data Corporation “remote management capabilities have demonstrated as much as a 92% decrease in labour costs”
- No ticketing system
- No prioritization
- Support methods are not cost-efficient.
- They are not effective information technology investment, troubleshooting, or administration options.
- It’s estimated that office staff understand less than 20% of the available features in the software applications they use. That means 80% of the features, time-saving capabilities, and cost-reducing functions remain unused.
- Gross inefficiencies result; Many processes — including repetitive data entry, complicated calculations, and automated data selection and reporting — are completed manually, which introduces a greater likelihood of errors entering the process.
So what are the advantages of a flat rate Managed Service?
- The major advantages of using an outsourced IT company with a Flat Rate business model is the consistency in costs, budget-friendly expenses, dependability of services, and unlimited help for end users.
- No pay rises, you don’t have to give pay rises to your IT provider
- This incentivizes the provider to resolve client issues, streamline processes and eliminate complex and sub-standard practices.
- Organizations that try to do all IT Services in-house themselves can have much higher research, development, and implementation time, all of which increase costs that are ultimately passed on to customers.
- According to a 2013 case study, “businesses switching from in-house IT to Managed Services experienced a three-year Return on Investment (ROI) of 224%
- Working with an IT consultant can also lead to leveraging vendor relationships and reduce costs/negotiate more attractive pricing for software and hardware.
Avoiding the implementation of incorrect technologies
- Outside consultants who make a living selling hardware and software will often push unnecessary changes to further their bottom line.
- The advantage of having an outsourced IT department (whose business model is not based around hardware/software sales) is receiving an honest opinion on what tech options are suited for the company.
- The decisions will be made based on what integrations create efficiencies and promote standardization.
Creating an IT Strategy
- Managed Services will continue to trend upward in the next few years.
- This is fueled primarily by smaller companies looking to compete with slow moving ‘giants’, because most small businesses can’t afford to match the in-house support services that larger companies maintain.
- Outsourcing can help small companies act ‘big’ by giving them access to the similar technology and expertise that large companies enjoy.
- An independent, third party managed-cost structure and economy of scale can give your company a competitive advantage.
- The amount of time and effort it takes to hire and train IT personnel, solve outages and everything in between is on the service provider.
- Since data backups are so critical to an organization’s livelihood, small businesses should work with proficient IT consultants or technology partners to ensure the right data is being backed up and that it’s being backed up as frequently as required.
- Consultants can work with small businesses to determine what data, files, and information should be backed up, how often to create the data sets, where to locate the backups, and how often to test the sets’ integrity.
- Consultants also prove invaluable in updating backup routines when software upgrades, migrations, and other updates change critical file locations.
Small businesses can overcome common issues by:
- Working with trusted technology partners who are proficient with current technologies and willing to help learn their industry’s operations requirements.
- Once a qualified technology expert is familiar with a client’s needs, appropriate services and solutions can be recommended and deployed.
- The result is almost always more cost-effective, more efficient, more profitable operations for the client.
It is worth a phone call to us at Lindentech today on 1300 85 77 45 or visit our website at www.lindentech.com.au to see how we can help you with your IT services.