How much does IT Support Cost for a Small Business? What is the going rate for IT services?
The cost of IT services can vary from state to state, and every IT company has its own set of guidelines to pricing their services. However, you should budget around $150 dollars per user per month for a good Managed IT Services Plan.
However, this price is a generalization, and IT Services prices number can change depending on the type of services and size of your business.
Let me explain the factors which will influence the price of your IT services.
I recently wrote a detailed article on “Areas of IT that you can Outsource and Should”. The article will explain areas, you as a business owner, should consider outsourcing and this post will teach you how much does IT support costs for small businesses. You can read that article here.
If you are researching the costs of IT Services, likely, you have also considered the costs of hiring an in-house IT person. For small businesses, is not easy to hire an IT person considering the cost of an IT employee can be in the $50k to $100k range. Most small companies can’t afford or have the budget to hire an IT employee.
For this reason, many small businesses turn to the IT company market to try and find a good and reliable IT company. If you are interested in getting more information on IT Services, you can send us your questions using the contact page here.
What is the going rate for IT Services? What’s the cost of IT Support?
The average hourly rate for IT services can vary but it is common to pay anywhere from $60 to $150 dollars per hour. While a part-time tech might only charge anywhere between $60 to $70 dollars an hour a professional and experienced IT company will likely charge more in the range of $80 to $150. These hourly rates are more applicable to computer repair and break and fix services. The cost of it support can vary from state to state but overall these numbers
How much should you pay for IT Services?
You will pay about $80 to $150 dollars per hour for “Break and Fix” services and about $150 dollars per user for fully Managed IT Services.
There are two main pricing models widely used by Information Technology companies. One model is called “Break and Fix” and the other model is called Managed IT Services. Managed IT Services are generally preferred by businesses since you can save money and Managed Services are cost-effective.
There are significant differences between break and fix and Managed IT Services. Break and Fix is when you call an IT company when you are having issues. Although a Break and Fix might seem like a cost-saving service model, it has its drawbacks. First, you can end up spending way more than you think using the break-fix approach. You will not be able to budget or predict your IT costs, and you will not have any ongoing monitoring or protection for your systems.
Let say your business is a Dental Practice with 10 employees. You call an IT company a few times a week to fix ongoing small computer issues and maybe one big problem weekly. Let’s also say that for the week, you consumed about 23 hours of support and break and fix services. Using the average hourly rate of $100 dollars per hour, you are looking at a total bill of $2300 dollar invoices for just one week.
Again, this is to fix systems that break and do not include any other type of services.
The average cost of IT outsourcing services
Now let’s look at the Managed IT Services approach. We will use the same Dental Office with 10 employees with about the same amount of computers. The average cost for Managed IT Services is about $150 dollars per user at your office. The managed services approach is excellent because you pay the same monthly bill every month. This service model is great for budgeting and forecasting your operating costs.
An office with 10 employees will likely pay 1,500 dollars every month for Managed Services. In our case, our company offers the following services in every Managed IT Plan:
- Unlimited support for your office staff, one monthly fee
- Proactive maintenance for your computers – full time
- Monitoring of your network and computers – saves time and money
- Managed Security for your services and computers
- Managed Backups ( Disaster Recovery )
As you can see, there are advantages to having this type of ongoing service. Although you might think that paying for IT services only when you need something fixed is a good idea, think again!
Buy using the “Break and Fix” model
Not only are you missing on the protection and proactive maintenance benefits of a full IT management plan, but you will spend more money over time since constant repairs can quickly add up.
My goal in this article is to give you an idea of how much you should pay for IT services. However, it is essential you know the difference between the two most common types of service models. It is also crucial to know which will cost you more because some IT Support companies will not educate you on these options.
There are also services you not should pay for. Be aware of the extra services that will cost you but will not add value to your business. For example, some IT companies will charge more for reports, quarterly reviews, and onsite support. Corporate Shields service plans are “all-inclusive”! However, it is important to you receive some reports showing you the work being performed with your network and devices.
It is also essential to read IT companies’ contracts
Make sure you are comfortable with the type of commitment being asked from your part. Many It companies will require a three-year contract while companies like Corporate Shields stand behind our services and offer all our services without a contract. Always ask what type of services are included and ask for some money-back guarantee. Any reputable IT company will back up their services and work hard to earn your trust.
The most important thing to remember from this article is that you should consider building a partnership with a good IT company. Also, remember not to sign long term contracts, a good IT company will want to earn your business and not lock you into a long term deal. Here are a few contract tips from Nolo.com
Lastly, do your homework. Try to talk to a few IT companies before making a decision. Don’t fall for company size numbers or sales tactics. The bottom line is you don’t need a 50 people company to receive high-quality services. A smaller IT company might offer you better service because they need and want to keep your business.