How much does IT outsourcing really cost?

It's like having a car

Today, there are not many people that don’t own a car. If you don't give it the regular servicing it needs to operate, there's a good chance that sooner or later your car will experience a serious breakdown or the cost of servicing it will be higher than it should be. Of course, you should put your car in the hands of a professional to make sure that your next drive will be safe and trouble-free. We see a parallel here with IT systems, which also require professional and regular maintenance. If this doesn’t happen, complications arise, making the whole operation more expensive.

How outsourcing affects costs

Since the rule of efficiency applies in IT outsourcing, the cost is in the range of 25% to 50% versus an in-house employee. This is a major financial advantage where we are assured that the company has several experts at its disposal.

The point of outsourcing is that we only pay for what we need. It is more cost effective. Our firm can adhere to a contractually agreed response time, and we can of course do that 24 hours a day, 7 days a week, 365 days a year. We see it as another big advantage of IT outsourcing.

What are the possibilities

When it comes to finance, there are several options. Services can be billed via a monthly flat rate, which means that management is not limited by the number of hours. However, as part of the implementation, the tasks are priced separately. We can agree with customers on hourly rates or a combination of a flat rate, which the customer pays to guarantee response times, and an hourly rate for specific tasks.

-  When we choose a flat rate, the customer always pays the same amount and it doesn't matter whether we spend an hour or ten hours on the problem. We aim to    resolve the problem in the shortest possible time so that our customers can get back to their activities as soon as possible. It's a win-win situation.
- The hourly rate is preferred by smaller companies that only encounter IT problems from time to time, or companies that don't need a guaranteed response time if something goes wrong, because they can work with the problem for a day or two. The flat rate is most beneficial for companies that have a lot of IT equipment and 100% functionality is a necessity for them.

Financial benefits of IT outsourcing

- Accurate costing
- Flexibility in the type of contracts
- Savings of 50% to 75% of the cost per internal employee
- Efficient management – IT systems are kept in perfect condition, the customer does not pay for service hours

So IT outsourcing is more efficient and cheaper overall than an in-house IT team, but it also saves on service costs as it keeps IT systems in perfect condition. Expenses are transparent and there are more options. It all depends on the company’s specific requirements.