Salaried IT Person vs. Outsourcing

Work dynamics have completely changed, and while in the past you had to hire in-house IT support, currently you can outsource your entire department. In fact, it’s estimated that Canadian businesses and the government will spend around $15 billion on outsourcing technology in 2021.

As a small firm in Vancouver, however, before deciding whether to hire a salaried IT expert or outsourcing support, there are several factors you need to consider. The key determinant is the costs you’ll incur. Here’s a complete guide to the financial implications of in-house IT vs Outsourced IT support.

In-House IT Support Vs. Outsourced IT Support in Vancouver: Which One Is More Expensive?

Contrary to what you may think, the answer is not really straightforward. Most businesses choose to handle their IT operations in-house under the assumption that it must be cheaper. That’s not necessarily true. You’re probably just considering the salary you’ll pay for your internal IT support, but there are a number of other expenses, including costs incurred during the recruitment process.

What Is the True Cost of Internal IT Support in Vancouver?

IT support technicians in Vancouver are relatively pricey, and according to PayScale, their base hourly rate is C$20.36, which translates to C$48,435. This amount increases based on how experienced the expert is, their job description, certifications, etc. Keep in mind that this figure only considers the base salary and doesn’t factor in other costs associated with salaried employees such as sick pay, health benefits, vacation time, cost of initial and ongoing training, work resources, and annual payroll tax.

You also have to consider the expenses you incur to recruit, train, and onboard the employee as well as manage them every day. According to the Society for Human Resource Management, employers incur about C$5,166 and take an average of 42 days to recruit.

There are also instances where you have to pay for educational resources so that they can stay up to date with the latest technologies. Most of the time, if your firm is just in its nascent stage and has a limited budget, you have to hire entry-level personnel who often only have basic capabilities. This means that when you need advanced IT services, you have to outsource.

Don’t forget that your in-house hires work on an 8 am to 5 pm schedule. You may have to hire another expert to take over the night shift.

Simply put, the true cost of hiring an employee may sometimes outweigh the benefits of having in-house support.

Is Outsourcing IT Support in Vancouver Cost-Effective?

There are 2 main ways you can outsource IT services in Vancouver; on an hourly rate or monthly basis. Working with an IT service provider that charges you by the hour would be a costly mistake because sometimes IT support goes deep into the night. This means that you’ll be receiving inflated bills that make the entire arrangement unsustainable. In such cases, it’s more cost-effective to hire an in-house IT expert, so ensure you go for IT services providers that allow monthly contracts.

Outsourced IT pricing works on 2 main models;

  1. Per-user pricing: The cost you incur is based on how many users you need to be monitored. This includes employees that use laptops, PC, mobile devices, Mac, or any device that requires IT support. Per-user pricing is the most common model in Vancouver.
  2. Per device pricing: in this model, instead of being charged based on the people that use technology in your company, you are charged based on how many devices you have.

The total price you incur varies, but it’s often determined by the size of your firm and the scope of IT services that you require.

Outsourcing gives you access to a pool of IT experts with different specialties & qualifications and also have the capabilities required to provide advanced services beyond basic system maintenance and monitoring. You also receive IT support around the clock and don’t have to invest in the required technologies. The best part is that all this is covered in your monthly flat rate.

Most internal hires often have limited skills, and you may have to hire several experts, but with outsourced IT services, your organization is exposed to a team with diverse skills.  Most of the companies that offer managed IT services in Vancouver invest in their employees, which means that they continually receive training and certifications.

Perhaps one of the most underrated benefits of outsourcing your IT support is that they are used to handling a wide range of IT problems. This makes them fully equipped to handle all the IT challenges that you face and will even give you new solutions that are more effective. Most managed IT service providers also provide preventive services which reduce the number of disruptions you experience.

Outsourcing your IT support ultimately saves you money and gives you access to diverse solutions. For instance, you don’t have to buy the systems required for IT support, you won’t incur any training expenses, and most service providers are flexible enough to work with your budget. IT service providers are also reliable and can provide your business with more capacity than a single IT expert.

Should you Hire In-House IT Support or Outsource IT Services?

All factors considered, outsourcing your IT needs is more cost-effective. It eliminates the stress, time, and money associated with recruiting and onboarding a salaried IT expert. IT service providers also have the infrastructure, software, and human resource required to provide advanced IT services and often have flexible rate cards.

Since most service producers are backed by extensive resources, they provide their employees with the training required to keep them on top of the current IT trends. They also offer round-the-clock support, give you access to a wide pool of experts, and are highly reliable. This ultimately enhances business continuity by reducing the amount of downtime you experience. Simply put, by outsourcing your IT services, you’ll be paying less for more.

Are you looking for a reliable IT support provider? Contact the Compunet team today for the best IT services in Vancouver.