Cost Comparison Chart
|Support Staff:||Staff:||Annual Cost:|
|In-House IT||Single Support Person||$85,953* incl. FTE Cost|
|MNI IT||Staff of 18||$45,600 per year**|
|* FTE cost are calculated at the National average of 30% of salary and inlcudes benefits, payroll taxes, workman’s compensation, vacation time and sick time.|
|** Based on 30 users, 3 servers and additional services offered by MNI.|
This example is for comparison purposes only. To read the case study of this cost comparison CLICK HERE. Actual cost to support your network will vary.
Common fears of Outsourcing:
- No one on site all the time
- The unknown
Commonly asked questions by business owners:
Question: Why Outsource?
Answer: Marcus Networking is surprisingly affordable and we can provide 24/7 support whereas an employee only works a certain shift like 8 a.m. to 5 p.m. Outsourcing to Marcus Networking means you are getting more than just a single person who manages your network. You are a getting a team of experienced technicians who can handle all areas of telecommunications and technology.
Cost Comparison Case Study:
Here is an excerpt from a recent discussion with a business owner about outsourcing with Marcus Networking. This client’s environment is 30 users, 30 computers, 3 servers, database software, Microsoft Exchange email, and other business applications.
1. Overcoming the fear of not having a person on site all the time:
Owner: Well, one reason I wouldn’t outsource is that I won’t have anyone on site all the time.
MNI: We have the ability to connect remotely to most computers and take control of the user’s session and see what it is the user is trying to do. This allows us to provide hands-on support without being onsite. This gives us the same “feel” as being seated at the user’s desk and most issues are resolved within 15 minutes.
2. Discussing what happens when something breaks physically:
Owner: What if there is something physically wrong that requires actual hands on?
MNI: We find that most business of your size do not stock spare parts or equipment. Diagnosing the issue is generally the easy part, whether it is a power supply, video card, hard disk failure, etc., which we can do remotely. Once diagnosed, we can generally purchase a replacement component and be on-site and have the issue fixed within an hour or two of the diagnosis. Often we stock spare hard disk and power supplies, the two most common components that fail.
3. Discussing the Owner’s perspective that his single staff member could resolve a hands on issue quicker.
Owner: Well since I have a person on staff, wouldn’t I be able to do that faster and more efficiently?
MNI: Not necessarily. Suppose your single staff employee is already busy with another IT issue or doing their “other” job that they are actually hired for. Having him/her pulled away from that issue or job to come look at the physical problem, now delays the fixing of the first issue or keeps them from performing their “other” job function, so that’s less efficient and less productive. Once diagnosed, this single staff person or another employee must now leave the premises to go purchase the replacement component, leaving both issues now unresolved and more importantly, any new issues that arise while this person is out must wait until he/she returns. With MNI, our staff would be fixing the original issue remotely, while simultaneously sending another technician to go purchase the required component for the second issue and arrive on site to fix the hands on problem.
Owner: Good point, well okay, what does it cost?
MNI: For your environment and the services that we will provide, about 45% less than the total cost of your full time employee.
MNI: Do you know what your cost is of your full time employee that is supporting your network now, when you consider, benefits, payroll taxes, mandatory workman’s compensation, vacation days, sick days and any 401K or bonus plan compensation? By the way, the National average for these FTE expenses is about 30% on top of their salary.
Owner: Yes, [pause] I guess I know what that cost is. Really? 30% additional for a full time employee?
MNI: Yes, 30%. Ok, well from the number that your FTE is costing you, eliminate the 30% for benefits, payroll taxes, mandatory workman’s compensation, vacation days, sick days and any 401K or bonus plan compensation.
Owner: Wait, how can you say 45% when you don’t know how much I’m paying my IT person?
MNI: Consider this: Finding a single individual that has the skill set to provide day-to-day support and possess the technical knowledge necessary to troubleshoot major server or workstation operating issues and all the intricacies related to the technology you have in your environment would cost you, just in salary alone, around $90,000.00 per year. Now add in benefits, payroll taxes, etc., etc., but in reality the chances are, you’re not going to find that one single individual that can know all of that, but suppose you have and if we add in the 30% additional FTE costs, the total cost to your business is around $117,000.00 per year.
Owner: [Laughing] Hold on, I don’t pay this person close to $90,000.00 and my network is running fine.
MNI: I’m sure it is in your opinion; but one of two things is going to happen if what you stated is true. Either he/she is one day going to realize they are underpaid if they have all that knowledge and leave your company; or if they don’t have all that knowledge when you have a major issue, say a server crash, that he/she can’t fix, you’ll then be spending additional dollars finding resources to fix it. We won’t even talk about lost revenue for your business coming to a halt until the major issue is resolved. We’ll just consider that a given.
MNI: What do you do when your IT person takes vacation or is out sick?
Owner: We get by. We’ll either try to fix it ourselves or what until he gets back.
MNI: Ok, back to our analysis. With your environment, and the services we will provide, including the intangible services, some of which you don’t have right now like spam filtering for email, offsite backup for disaster recovery, regular systems maintenance on servers, 24/7 help desk support, after hours support, and unlimited CIO level Consulting, the fixed monthly cost to you is about $3,800.00 per month. $45,600.00 annualized. So are you paying your IT person, just in salary around $66,120.00 per year or 5,510.00 per month? Now add in the 30% FTE cost and the real cost to your business is $85,956.00 per year or $7,163.00 per month. Based on these numbers, our $45,600.00 compared to your $85,956.00, our savings is $40,356.00 per year or 46%.
MNI: At worst case, even if you are paying your IT person the same as we would charge you on a monthly basis, $3,800.00 per month, your gaining a team of technicians and additional services that you aren’t currently getting now for the same price you currently pay. Oh and you would be saving the 30% FTE costs.
Owner: When can you start?
Summary: This owner realized that having a team of technician’s available to them to support their issues, 24/7 helpdesk support, afterhours support and a slew of services provided to them that they don’t currently have for less than what they are paying one single individual to handle it all, made since to them and signed on for our Monthly Managed Network Infrastructure Service (MMNIS). Imagine the cost savings if there is more than one IT staff or if additional people get pulled away to handle simultaneous issues.
Outsourcing makes good business productivity sense and good business financial sense.
Call today for your own business analysis and let us show you how you can save immediate dollars and increase your IT support at the same time. (602) 427.5027.