Numata Blog

Can SMEs Afford Managed IT Services?

Written by Numata Business IT | Feb 15, 2022 13:17 PM

Many small-to-medium business owners struggle with managing a limited budget with a growing need for IT services. Since COVID-19 digital transformation has accelerated, and now more than ever, businesses of every size need to prioritise IT. Many SME owners and managers believe that it’s more affordable to manage IT in-house than to outsource it, but that’s not necessarily the case.

Here are a few areas worth considering as you face the decision:

Ever-changing technology

Technology is developing faster than ever before, and it’s hard to know where to invest and how. With a limited budget, SMEs need expert advice, but hiring an expert can be pricey. There may not be room in the budget for hiring a senior or executive-level IT person in your budget, and it’s also hard for one person to have a handle on every new development. This brings us to the next point…

Staffing an internal IT department

While larger corporations generally have the required budget to build and support an internal IT department to provide expertise and support for the technology used by the company, smaller organisations may not.

Attracting, recruiting and retaining top-notch people is an expensive endeavour, particularly within the in-demand IT field.

Break/fix IT issues

Many smaller businesses choose to address IT only when it becomes a problem. This is called the break/fix model. While this sounds like a way to save money, the truth is that it’s the opposite. First off, there’s nobody planning out your IT strategy, which means you’re reacting only to problems, rather than proactively using IT as a tool for business growth.

Secondly, you’re not top of the IT company’s priority list – you get served when they can squeeze you in, limiting the availability of IT resources for your business. Plus, you’re likely running a patchwork of technology, which is not going to help you optimise your business processes or get ahead of your competition. You might not even be aware of the IT you could have in place to help your company get to the next level.

Plus, if/when things go really wrong, you’re facing a major, unexpected cost.

When you partner with a managed services provider (MSP), on the other hand, you know exactly what you’re paying for upfront, and what it will cost you.

Some of the services provided by MSPs like Numata include computer and server support, data backup and disaster recovery, network security, custom software solutions, remote network monitoring and technology evaluation and planning.

Numata has accessed several salary surveys and done a comparative analysis of what it will cost to employ an MSP (based on an average of 30 users), compared to an IT manager, and the numbers speak for themselves:

Country Managed IT Services (Yearly) IT Manager Salary (Yearly)

 United Kingdom

 $ 24 202.80

 $ 59 798.40

 Ireland

 $ 24 137.42

 $ 81 885.80

 South Africa

 $ 11 598.03

 $ 30 782.95

 

Find out more about our pricing guides in the regions we serve:

Get in touch to find out how Numata Business IT can help to take your SME to the next level. Your initial consultation is free.