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The ROI of IT Outsourcing

Munds Park RV Resor

 September 24, 2024

 

When we encounter a new prospect who hasn’t previously worked with an MSP, we are often asked to explain how using an outsourced IT solution can save them money.   For many business owners or decision makers, an important factor in going forward with outsourced IT is calculating the actual ROI on using an MSP vs a DIY solution.

Below are a few factors to consider in measuring the benefits of working with an MSP, to ensure it delivers value for your organization and is cost-effective.  

1. Savings on IT Infrastructure and Staffing

One of the most immediate and tangible returns from IT outsourcing is the cost savings related to hardware, software, and IT personnel. Maintaining an in-house IT department can be expensive, with costs including:

  • Salaries, benefits, and ongoing training for IT staff
  • Purchase and maintenance of servers, networking equipment, and software
  • Licenses, subscriptions, and other recurring technology expense

How MSPs provide ROI:

  • Predictable Monthly Costs: MSPs typically work on a subscription-based model, offering predictable, fixed monthly costs for comprehensive IT services.
  • Lower Hardware and Software Expenses: By using cloud-based solutions or
    leveraging their own infrastructure, MSPs eliminate the need for expensive
    in-house servers and software.
  • Reduction in Labor Costs: Instead of hiring full-time staff, businesses can rely
    on an MSP’s team of experts, often reducing labor costs by up to 30-40%.
 

2. Scalability and Flexibility

As businesses grow or their needs change, scaling IT resources can be both challenging and costly. An MSP allows businesses to scale their IT infrastructure up or down as needed, without major capital investments.

ROI in scalability:

  • On-Demand Resources: Whether you need more bandwidth, cloud storage, or
    additional user licenses, MSPs offer the flexibility to scale IT services according to your needs.
  • Reduced Capital Expenditures: Instead of buying new servers or equipment as
    your business grows, an MSP provides access to the latest technologies
    without requiring large upfront investments.
  • Future-Proofing: MSPs stay updated on the latest IT trends and innovations, allowing your business to quickly adopt new technologies without the cost of constant upgrades.

3. Access to Expertise and Innovation

Hiring in-house IT experts with specialized skills can be cost-prohibitive for many businesses, but another unspoken cost is the training required to keep that expertise current and relevant.  To ensure skill sets do not deteriorate, in-house IT professionals must pursue rigorous training and constant educational opportunities.   In small companies, since they don’t have access to the collaborative problem-solving culture baked into a typical MSP team, in-house staff must be diligent in staying connected to the latest trends and technologies and get exposure to a wide range of tech-related topics, such as cloud computing, cybersecurity, and network management. The educational and cultural structure of an MSP is not easily duplicated in a small business, therefore requiring extensive training and constant up skilling.

Measuring ROI through expertise:

  • Expert Advice and Consulting: MSPs, by their very nature, are exposed to many new technologies and can act as strategic partners, advising
    businesses on the latest technology trends, ensuring that your IT strategy
    aligns with your long-term goals.
  • Innovative Solutions: MSPs can introduce new technologies that improve business operations, such as cloud migration, artificial intelligence, and
    automation. These innovations help businesses stay competitive and agile
    in rapidly changing markets.

Conclusion

The ROI of IT outsourcing can be substantial, especially when businesses partner with a reliable Managed Service Provider. By reducing costs, minimizing downtime, improving security, and providing access to cutting-edge technology, MSPs help businesses streamline their IT operations and focus on core business objectives. When properly measured, the return on investment in outsourcing IT functions can lead to long-term financial gains and a stronger, more resilient organization.

If you’re considering outsourcing your IT, we can assist you with evaluating these  ROI factors so you can make an informed decision and ensure that your MSP partnership delivers value.

 Investing in NTS is easy

NTS provides comprehensive Managed IT Services. Our customers receive a proactive, effective solution through high-quality tools employed by a team of experts with a broad and deep skill set. We provide foundational systems support that significantly maximizes network performance and uptime, while reducing risk of cyberattacks and malicious actions, allowing our clients to focus on their operations and customers. Schedule a consultation with NTS today!

 

Below are a few factors to consider in measuring the benefits of working with an MS

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