Internal IT cost

by | Dec 5, 2012 | Business

For larger small businesses (25 to 100 computers/employees), the IT labour requirements of their computer network can be significant enough that consideration is given to hiring a full time employee to dedicate to the IT Support roles. The alternatives are having an in-house employee support the organization on a part time basis, while also serving other significant roles. Or a company can outsource their IT support to companies like Smart Dolphins. There are a number of considerations here, many of which are often overlooked. I will be sharing some of these considerations through a series of six blogs over the coming weeks. Here is the second.

Last week I discussed how a small business has the challenge of finding the appropriate scale and focus with an IT support employee. This week I will be discussing the total costs of hiring a full time person.

For companies that have 50 to 100 computers, generally speaking, the cost of outsourcing may appear to be similar to the cost of having a full time employee. A full time, experienced IT person will be paid between $40,000 and $100,000+.

Perhaps outsourcing your IT has been quoted at a similar number. If so, do both options cost the same?

You may think you can hire a full-time person for the same cost as outsourcing your IT, but make sure you do all the math.

Most business professionals know that an employee that is paid $60,000 per year, costs a lot more than $60K per year. Let’s go through some of the extra costs:

  • Extra direct payroll costs and benefits.
  • Every employee needs a desk, a phone, a computer, a bunch of software… and more!
  • There are costs associated with hiring a new employee and too often there are costs to firing the wrong hires and rehiring.
  • There is the cost of training, which is particular important with a technology employee if you are going to support their technology evolution and certification. Technology evolves quickly. This will likely involve travel expenses.
  • A successful in-house tech will also need tools such as a trouble ticketing system, troubleshooting assets, remote management software and a myriad of other possible tools.
  • Let’s not forget that all employees need the precious time of the company’s leaders and management. They should be spending a lot of time with this IT employee if technology is an important area in the business.
  • The IT person will also need to be able to take time away for sickness and vacation and they will need to cross train with others.

Can we agree that a $60k wage isn’t a $60K cost to the company? It’s probably at least $80K and maybe a whole lot more, depending on how you cost out certain things in the list above. Regardless of the numbers, the point is to make sure you’re doing all the math when assessing the costs of your options.

Feel free to send me an email if you’d like some help in assessing your options.

Next week I will be discussing IT leadership and the other proactive roles needed in the organization.