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4 In-House IT Costs We Forget About

4 In-House IT Costs We Forget About

Information technology costs have risen over the last two decades as tools and systems have gotten more expensive and more necessary for business. It’s easy to understand why when we ask businesses what the cost of their in-house IT team is, they don’t know. They might take a good guess, but we find every time, they are way underestimating the price tag they are paying to have their technology managed solely by their own team.

Here’s the top 4 costs that are often overlooked:

Employment costs

While most employers can quantify the number that they pay each of their staff, it’s often the additionals that they forget they are also paying for in order to employ people.

As far as salary, don’t forget:

  • Health care: if your company provides healthcare, chances are a portion of that is coming out of your budget.
  • 401K employer matches
  • Employment taxes
  • Other benefits to employee and their family

Downtime

How do you quantify downtime? Is it by the loss of sales in that time period? Is it by the amount of clients you lose because your technology doesn’t keep up? Or is it the cost of the salaries for all the people who can’t work because your system is down?

It hardly matters beyond knowing that every minute you are down, it is costing you money. If people aren’t able to do their jobs and be effective, it is all money without any productivity at the end of it. Having outside cloud providers support you means they work round the clock and reduce the downtime of your team.

Ineffective support

Unless you are an IT expert yourself, hiring one that is effective can feel like pulling the arm of a slot machine. You may get someone who really knows what they are doing or you may get someone who knows how to sound like they know what they are doing. What’s more, you can find the exact right person, but they don’t necessarily all the systems you run or are new at others.

When you use cloud service providers, they are experts at that very system and you usually have access to experts you couldn’t afford or wouldn’t make sense to hire on your own team due to cost. You’ll have the best on each of your systems without having to pay one person or team to know it all.

Replacing IT

Just like every other employee, finding new IT support is expensive. The time, energy, ads and interviewing interrupts day to day business. Then there is the onboarding and training which can mean thousands of dollars in pay, additional tools, additional outside training to get up to speed on your systems and so much more for IT positions. Just to train a new person for a position can add huge costs to your overall IT budget and possibly slow down the people who need that support the most.

In-house IT departments can be extensive and expensive.

This is why small businesses are moving to the cloud. Even in environments where the full cloud is not available due to HIPPA or restrictive data requirements, many companies are embracing a ‘hybrid’ cloud. A ‘hyrbid’ cloud environment means a lot of things have moved, but not everything. This allows small business to reduce the load on their in-house IT and IT budget overall, while improving data-accessibility and company productivity.

In short, make your business work smoother with a bigger impact on the bottom line with cloud technology.

Contact us to learn more about the cloud and what the best solution for your business is.

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