If you’re trying to run a business with more than 50 employees AND manage your IT, it’s time to consider outsourcing the latter. Here is why...
These days, IT-related downtime can have a devastating impact on the revenue and reputation of businesses, especially for ones who have made it to the 51-200 employee size. When you were less that 50 employees managing IT was a part-time necessity. Why? Because for most companies of that size your affinity for IT is very light, and basic. Now that you have grown to the next level you have become what is know as IT Dependent.
"Getting to the next level of growth will require you to become IT Strategic."
IT Affinity By Employee Size:
- 1-10 Employees = IT Light
- 11-50 Employees = IT Basic
- 51-200 Employees = IT Dependant
- 200+ Employees = IT Strategic
How IT Dependency Impacts Growth:
Ask yourself this question? When IT is down or does not work right, does my business slow down or maybe even come to a grinding halt? For most of us, the answer to that question is yes. Slow revenue or halted revenue means your company is not growing!
So what do you do? You could hire a full time, W2, IT person or maybe even a team. But IT staff is not cheap. The average annual salary for an entry level IT engineer in the U.S. is about $65,000. But for a mid-level engineer who has the experience and skill sets to effectiely manage email, servers, network, security, backup and recovery, desktops, etc., you are looking at a minimum of $95,000 to $120,000 per year - per engineer. That is a direct hit to your bottom line profitability and limits your access to cash to fuel growth.
How IT Outsourcing Fuels Growth:
Here is the Headwaters Group managed services example: We have 65 engineers on staff who have years of experience managing IT environments from the desktop to the data center for Fortune 1000 companies as well as small 20 person small business firms. This gives us "and you" economies of scale. To be more direct, what you can achieve with one full time IT person for $65,000 a year, we can do for $40,000 per year. And do a better job, because our engineers have more technical depth and more hands than yours.
"Unless you sell IT for a living, any time, energy or resources spent on managing your day-to-day IT environment takes away from your core focus - running your business and driving revenue!"
There are many items to consider if you’re thinking about outsourcing your IT, so we’ve attached an eBook below that summarizes the key factors for this decision.
Remember to subscribe to our blog as next week we will discuss how to extract value from IT at the strategic level.