IT Services Provider vs. Hiring an IT Staff – Detailed Cost Comparison

The Cost of Outsourcing an IT Services Provider vs. Hiring an IT Staff

When it comes to the bottom line, outsourcing an IT services provider instead of hiring an in-house IT staff will save your organization tens of thousands of dollars every year.

Have you ever wondered what costs more, outsourcing an IT services provider or hiring an IT staff?

In today’s digital age we use technology for just about everything. With significant technological advancements, every organization needs a professional or team of professionals to handle, manage, maintain, and optimize IT.

When it comes to the bottom line, outsourcing an IT services provider instead of hiring an in-house IT staff will save your organization tens of thousands of dollars every year. It all comes down to understanding which option yields the best outcomes and by understanding the difference between IT support fees and hiring someone.

Cost Comparison

There are many factors to consider when weighing out the cost comparison between outsourcing an IT services provider and hiring in-house IT professionals. The location of your organization and the type of IT professionals you need to hire plays a huge role in determining the salary of each professional.

Based on the 2021 salary calculator from the Robert Half Technology website, the following list includes annual salary figures specific to the Chief Information Officer (CIO) in various cities and states:

• Trenton, NJ: $219,901 – $376,213
• New York, NY: $246,578 – $421,851
• Philadelphia, PA: $201,825 – $345,288
• Atlanta, GA: $186,030 – $318,265
• Charlotte, NC: $181,642 – $310,759
• Columbus, OH: $171,990 – $294,245

On the other end of the IT spectrum, the following list of annual salary figures are specific to the Help Desk Tier 1 position within an IT department:

• Trenton, NJ: $44,168 – $71,734
• New York, NY: $49,526 – $80,436
• Philadelphia, PA: $40,538 – $65,838
• Atlanta, GA: $37,365 – $60,685
• Charlotte, NC: $36,484 – $59,254
• Columbus, OH: $34,545 – $56,105

All figures above represent the starting salary in the 25th percentile and the 95th percentile. These figures do not include bonuses, incentives, benefits, training, or other employee related expenses which you should consider as well.

Now keep in mind, it will take more than one IT professional to work within your organization. The larger your enterprise, the larger your IT staff will need to be. If you add the salary of a CIO with the salary of a Help Desk Tier 1 employee, you will get an idea of what only two IT staff members will cost you each year.

On the flip side of this unbelievable and accurate data, if your organization decides to outsource your IT department to a highly experienced, educated, and reliable company, like Atlantic-IT, your annual IT costs will drastically reduce.

For example, let’s say your organization has 30 employees who are not IT professionals. If Atlantic-IT were to charge you a ballpark figure of $150 per employee each month, your monthly IT services will cost you $4,500 which equates to only $54,000 per year. Based on the data above, that’s approximately 25% of what two in-house IT professionals will cost you.

Top Benefits of Outsourcing an IT Services Provider

There are many benefits of outsourcing an IT services provider over hiring an in-house IT staff. Some of the top benefits are:

• Low Additional Overhead – As shown above, the annual cost of outsourcing IT is significantly less than hiring an in-house IT staff.
• Tax Deductions – When you hire employees you take on additional tax liability, whereas outsourcing will create tax deductions.
• No Employee Training Required – Outsourcing an IT services provider delivers fully trained and capable professionals which means you won’t have to spend money on keeping your internal staff trained on new standards, software, hardware, cybersecurity advancements, and more.
• Avoid IT Nightmares – New employees can make costly mistakes, especially if they haven’t received up-to-date training, but an IT services provider has the experience your organization needs to execute comprehensive IT strategies.
• Eliminate Single Points of Failure – Relying on in-house IT professionals will put your organization at risk when it comes to sick leaves, vacations, terminations, and resignations.
• Hire What You Need – By outsourcing IT, you will only pay for the services you specifically need, not what you don’t.
• Save Time and Money – IT services providers take a proactive approach to IT, which means training, research, and development are already included to prevent issues from occurring, whereas an in-house IT staff has a break/fix mentality in which they take care of an issue after it occurs.

Save on IT Costs with Atlantic-IT’s Managed IT Services

Atlantic-IT is a trusted Managed IT Services company for large to emerging companies in New Jersey, New York, Philadelphia, Atlanta, North Carolina, and Ohio. Our team of expert managed IT services engineers and IT specialists fulfill many unique needs in a business setting.

Whether you need a full IT solution or just need an additional helping hand for your IT department, we are ready to help. Atlantic-IT’s hybrid management model offers scalable, flexible solutions that are tailored to your business objectives.

Our IT Consulting and Managed IT Services include:

• Cloud Services
• Security Solutions and Services
• Proactive Support and Monitoring
• Help Desk
• Compliance
• Backup and Recovery
• IT Planning and Forecasting
• And more

For more information on how we can help your organization, while saving you time and money, reach out to our experts today by calling (877) 936-3328.