How Much Should I Pay For IT Support?

How Much Should I Pay For IT Support?

The cost of IT support for your small business depends on your needs, current infrastructure, and several other factors specific to your company but typically ranges from £50 to £150 per user, per month.

Scenario

You’re a small business owner juggling various aspects of your business to keep it running smoothly. From marketing to finances, there's always something on your plate. You know that IT support is an essential part of any successful business. However, you find it confusing. Especially when it comes to pricing. And besides the obvious question of “How much should I pay?”, there are other price-related questions to consider;

1. Which support option should I choose?
2. Should I hire an IT company or a “one-man band” IT freelancer?
3. Should I hire an overseas provider?
4. TLDR

This article will address these questions.

Which Support Option Should I Choose?

You should choose the support option that best matches your budget, needs, and circumstances. The common support options are:

• Hourly rate: This is sometimes called “time and materials” or, even more descriptively, “break-fix”. Essentially, it means you contact IT support as and when you need it, usually only when something goes wrong, and you pay for the issue(s) to be resolved on an hourly basis. This option is good for small companies with less demanding infrastructures.
  
  
• Monthly retainer: Under this arrangement, you’d pay your IT company or freelancer an agreed monthly fee (usually paid in advance) in exchange for a specific set of services or a set amount of hours. This option offers predictable budgeting.
  
  
• Managed service: This is the most comprehensive option and usually offers services like proactive maintenance, network/server monitoring, cybersecurity, and ongoing support. This option is great can be great for companies of all sizes because it’s usually priced per device, per user, or a combination of both, so it scales with the size of your company.

Should I Hire An IT Company Or a “One-Man Band” IT Freelancer?

The best answer I can give you to this question is to hire the provider in whom you have the most confidence, whether they’re a freelance IT professional or a larger IT company.

In terms of price, the freelancer will almost certainly be less expensive due to having fewer overheads. And if they provide their services to several clients, then you should expect their fees to be significantly lower than if you were hiring them as a full-time employee.

However, as always, price isn’t the only factor you should consider when making this decision. Each option comes with pros and cons.

Hiring a Freelancer

Pros

• Cost-Effective: Freelancers often offer competitive hourly rates or project-based fees, potentially saving you money.
  
  
• Flexibility: Freelancers can often tailor their schedule and services to meet your specific needs and budget.
  
  
• Specialised Skills: You can find freelancers with highly specialised expertise relevant to your specific industry or software.

Cons

• Single Point of Failure: Relies on the availability and expertise of one person. If they are unavailable or a complex issue arises beyond their skill set, you might face delays.
  
  
• Limited Scope: Freelancers may not have the capacity to handle a wide range of IT needs, potentially requiring you to hire additional freelancers for specific tasks.

Hiring an IT Company

Pros

• Teamwork and Expertise: Access to a pool of IT professionals with diverse skill sets, ensuring they can tackle complex issues beyond one person's expertise.
  
  
• Scalability: Their team can adapt to your growing IT needs as your business expands.
  
  
• Standardised Processes: Established procedures ensure consistent service quality and clear communication.
  
  
• Account Management: Dedicated point of contact for all your IT needs.

Cons

• Cost: IT companies typically have higher overhead costs, translating to potentially higher service fees compared to freelancers.
  
  
• Flexibility: May have less flexibility in scheduling or adapting to specific needs compared to a freelancer.

Should I Hire an Overseas Provider?

Hiring an overseas IT company (i.e. from Asia) can often work out to be far less expensive than a local or national one. However, price shouldn’t be your only consideration here. You should also take into account the following:

• Language: This is an obvious downside. Communication issues may have a significant impact on the effectiveness of the service you receive. Even if your provider speaks proficient English, they may not be familiar with the nuances of your vernacular or dialect, which could lead to misunderstandings.
  
  
• Time zone: Having a provider that’s based in a different time zone is a potential problem if you require support outside of their working hours. This might be negated if they provide a 24-hour service, but that would most likely increase your costs significantly.
  
  
• Legal complications: If the relationship with your overseas provider breaks down, you might find yourself with little legal recourse should you need to pursue litigation, as your provider isn’t bound to comply with your country’s laws.
  
  
• On-site support: Obviously, an overseas provider won’t be able to turn up at your office at a moment’s notice when something’s not working. Having said that, it’s a growing trend for IT companies with overseas clients to have agreements in place with local providers who do the onsite support for them. However, such an arrangement might inflate the cost of their service, which would defeat the purpose of having an overseas provider in the first place.

At first, the low cost of outsourcing your IT support to an overseas provider may be an attractive option but when you consider the potential cons, it would probably be more cost-effective to hire a local freelancer or company who could provide the same level of service. However, depending on where your company is located, you may find it more expensive to hire an IT provider from your local area. IT costs are usually more expensive in large cities and national capitals. So, if that’s where you’re based, it might be a good idea to look for a provider just outside of your city.

TLDR

1. Common support options are hourly rate, monthly retainer, and managed service. Choose the best one for your budget, needs, and circumstances.
   
   
2. Hiring a freelancer will almost certainly be less expensive than hiring an IT company but that doesn’t necessarily mean it’s the best option.
   
   
3. Outsourcing overseas might look cheaper in the short term, but could end up being more expensive in the long term.