Do You Know How Much Your SMB Spends on IT?
IT is a critical component of business, and companies are devoting a large portion of their budgets toward it. This trend is expected to grow as we become increasingly reliant on technology in the workplace. This anticipated growth is not limited to large companies—a new update of the Worldwide Semi-annual Small and Medium Business Spending Guide from International Data Corporation (IDC) forecasts that total IT spending by small- and medium-sized businesses (SMBs) will approach $568 billion during 2017. Moreover, this number will increase by more than $100 billion to exceed $676 billion by 2021. These statistics show that SMBs recognize the value of IT, with hardware, software, and services helping to improve productivity and keep up with the competition.
However, unlike larger corporations, many smaller organizations simply don’t have the room in their budgets to keep these IT expenditures in-house. That’s why SMBs are increasingly outsourcing the management of their IT environments to Managed Services Providers (MSPs). In addition to benefits such as access to a team of trained IT professionals, partnering with an MSP will save your SMB money. Here’s how:
Reduce your IT overhead – By partnering with an MSP and outsourcing the management of your IT, you’re no longer responsible for the financial burden of paying for hardware, software, or network connectivity. You’ll eliminate expenses such as servers, storage devices, and even network cabling. Your staff members can devote their time to value-adding tasks rather than time-consuming chores such as software updates.
Lower energy costs – Without the need for servers, routers, storage devices, and other hardware in your building, you’ll be spared the energy, network, and HVAC usage required to operate and keep them cool to prevent overheating. This seemingly benign technology requires a good deal of power to run and to ensure it keeps running. Those energy costs are assumed by your MSP, as this hardware will be located in their facility, not yours.
Decrease payroll – Without an in-house IT staff of your own, your payroll will not be bloated with the salaries of these well-paid employees. In addition to salaries, employing your own IT team requires thousands of dollars in ongoing training to keep their competencies up-to-date. This is why most SMBs elect to outsource their IT environment—it makes economic sense.
If your SMB is struggling under the weight of a costly in-house IT staff or unable to afford the IT resources you need to keep up with your competitors, outsourcing the management of your IT environment to an MSP could be the answer to your technology problems. Contact us today to learn more about our Managed Services solution!
