it service pricing

It's not easy for businesses today to decide if managing IT services in-house is worth the investment or if it's a better idea to outsource IT services to a professional network management service. At the root of this debate is one big problem: understanding IT service pricing. Here's a quick guide about what many people get wrong about IT service pricing, and a few things to keep in mind when you're assessing the benefit of a managed IT service for your business:

Myths About IT Service Pricing:

    1. Myth: It's impossible to accurately price cloud computing services
      While it's true that cloud computing services are getting more complicated by the day, but it's still possible to price effectively. You need to consider factors such as storage space, traffic allotments, and data backup services.


    1. Myth: Managing high-risk IT tasks in-house is more secure than outsourcing
      Think of it this way: when you give employees the keys to your most valuable information, they're able to walk out the door with all that info if they really want to do some damage. It's definitely safer to have outsourced management teams handling sensitive information about your business's security network.


  1. Myth: Outsourcing IT work per project is more cost-effective than outsourcing everything to a managed service
    When you outsource your IT work by the project, you aren't likely to have a solid estimate of what it will actually cost. Many services will charge hourly rates of anywhere between $125-$175 per hour -- but they won't always tell you how many hours a project will likely take. With a managed service, you'll pay a flat fee (usually monthly) and you have the reassurance of getting good-quality services every single time, regardless of how long a project takes.


Factors in IT Service Pricing:

The biggest factor you'll have to consider with pricing IT services is cost; when everything is said and done, it all boils down to the cost effectiveness of outsourcing your IT services. More specifically, you'll have to consider the following questions:

    1. Do you already own equipment or will you have to purchase it?


    1. Can your business really afford the cost of this equipment up-front?


    1. If your business is growing quickly, do you have the resources to make sure that your IT department grows as well?


    1. Can you easily recover important information if a disaster occurs, and without jeopardizing your network security?


  1. Are you willing to pay for ongoing software and hardware updates, as well as ongoing staff training?


It's important not to let the confusion of IT service pricing keep you from using a managed IT service. Whether you rely on cloud computing programs (as four out of five businesses do), or you need to upgrade your cyber security defense (there were over 82,000 new malware threats per day in 2013), or if you simply need to boost your visibility online with SEO services -- a managed service can provide it all.