The Cost of Managed IT Services: A Detailed Guide

Digital maturity is responsible for close to 45% growth in net revenue among American companies. Today, American companies with high maturity levels in their digital transformation journey are leading the pack when it comes to achieving higher net profit margins. 

However, managing this digital transformation journey is never easy. Most enterprises opt to consider outsourced managed IT as a solution to the predicament. 

Managed IT services present a myriad of advantages to your business. Once you outsource the responsibility of maintaining all or part of your function, it becomes easy for you to focus on your core business. Even so, most companies don’t know the actual cost of managed IT services. 

Until today, this has been one of the most guarded secrets among managed IT service providers. So, what are the actual prices of managed IT? Read on for a comprehensive breakdown. 

What Is Managed IT 

Before we delve into the cost of managed IT, let’s define managed IT services. Managed IT refers to the decision to outsource part or the entire portion of the business IT process to a third-party specialist. Companies that focus on outsourcing part or the whole IT process to professionals often derive impressive results. 

However, even when focusing on the benefits of managed IT, it’s essential to consider the cost you must pay to enjoy the benefits of working with managed IT companies. 

The Cost of Managed IT

The current going rate of managed IT services is between $100-$150 per person per month. If you are in the United States and hope to get a professional to manage your IT functions and operations, this is the minimum you might need to pay to get the best services. 

The going rate changes depending on several other related factors. When dealing with a managed services provider, the billing may differ, depending on whether they are charging a flat rate. This, however, depends on the following factors. 

Size of the Company     

When looking for managed IT services, the cost depends on the size of your company. Companies with a smaller number of employees will have fewer expenses to deal with when sourcing for managed services. Today, the standing charge for managed service is between $100 to $150 per person. 

This means that the more the number of employees in your organization, the higher the managed services’ fixed cost. The size of the company also depends on the number of departments in the company. It also means that the current price of managed IT services will change as your business grows. 

It’s important to consider IT management services from a provider with the capacity to scale up with you as your business grows. Growing with the same provider can help minimize your costs in a significant way. 

Technological Complexity 

The process of managing IT services is different from one company to the next. Part of this difference depends on the level of technological complexity in a given company. If your company uses sophisticated technology, then the process of managing such functions and operations may be higher. 

The security and information technology system and structures often determine how much you get charged when sourcing for managed IT services. So before consulting a managed IT service provider, it would be imperative to consider the kind of technology in your organization. 

If the technical support needs in your organization demand advanced information system management, then you might need to pay more. As such, it’s essential to be candid about the extent of technological complexity you expect in the management of your IT services. This will ensure that you get an accurate quotation when it comes to pricing. 

Number of Internal Staff Devoted to the Process

When considering the cost of managed IT services, it’s essential to factor in staffing. If you have a few members of your staff who will be part of managing the information systems, you might pay less. Most organizations prefer to have a few of their team as part of the devoted IT staff. 

The approach means that the managed IT provider will incur fewer labor costs than in a situation where the entire process is in the hands of a devoted team. In such cases, the cost of managed IT services will reduce. 

Full-Time Managed IT Services Cost More    

When sourcing for managed IT services, you need to know whether you are searching for full-time or part-time managed IT services. If your company is searching for a provider who offers a full package of managed IT services, you must be ready to pay more for such services. 

Full-time managed IT services include consulting, monitoring, technical support, telecommunication, and other related services. A business that sources such services often has to pay much more than companies that need partial managed IT services. 

When sourcing for managed IT services, the level and nature of delivery often counts for something. As such, always understand what you need from a managed IT provider before committing. This will help you know in advance how much you’ll need to pay. 

Your Geography             

What most people don’t realize is that location matters when looking for managed IT service providers. Ultimately, the eventual cost billed to you will depend on whether you are a single location business. If you have several locations around your city, then the cost of managed IT services will be higher. 

Other factors, such as having a traditional office space, vis-à-vis a remote working setting, also affect the cost of managed IT services. If your company is set in a secluded setting with outdated internet infrastructure, you might have to dig deeper when sourcing for a managed IT services provider. 

Other Factors

Most managed IT service providers will focus on other important factors when determining the cost of their service. Set-up is among the most important additional factors that affect the price. The more sophistication in your set-up, the higher the cost of managed IT. 

System integration, the models, and versions needed for your IT systems also matter. These factors often play a momentous role in determining the actual cost of managed IT services. 

This Is How Much Managed IT Services Cost 

When focusing on managed IT services, the cost is often the most critical factor you can’t overlook. Unless you understand the cost dynamics, you might end up paying for services you know little about. 

Before you commit to a provider, it would also help to consider other factors such as full-time versus partial managed IT services. Each of these factors can cause the actual cost of managed IT services to be higher or lower. 

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