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Maximizing Returns: The ROI of Outsourcing IT and Security Services for Businesses

In today’s rapidly evolving business landscape, organizations face numerous challenges when it comes to managing IT infrastructure and ensuring the security of sensitive data. As technology advances and cyber threats become more sophisticated, businesses must find effective solutions that not only protect their assets but also maximize their returns on investment (ROI).

In this article, we will explore the various benefits and potential ROI of outsourcing IT and security services, and how it is helping businesses make informed decisions that can drive growth, enhance productivity, and safeguard their digital assets.

Understanding the benefits of outsourcing IT and security services

Outsourcing IT allows businesses to focus on their core competencies. Instead of having to divert valuable time and resources towards managing complex IT infrastructure or dealing with security threats, businesses can allocate their energies towards their main business objectives. By entrusting General Informatics with the intricate tasks of managing IT infrastructure, your company will notice increased operational efficiency and effectiveness.

Outsourcing also provides businesses with access to the latest technologies and industry best practices. At General Informatics, we stay up to date with the ever-evolving technologies and state-of-the-art tools so that you don’t have to. This ensures that your business can benefit from cutting-edge solutions, advanced security measures and reliable infrastructure, ultimately enhancing your businesses’ overall performance.

As your business grows, your IT and security needs evolve. Outsourcing allows for easy scalability, ensuring that your business can adapt to changing requirements without the hassle of recruiting and training new staff or investing in additional infrastructure. In summary, outsourcing IT and security services can bring numerous benefits to businesses.

Cost savings and ROI in Summary

One of the key advantages of outsourcing IT for businesses is the significant cost savings and return on investment (ROI) that can be achieved. When businesses outsource their IT and security needs, they can reduce the costs associated with in-house teams, as well as the expenses related to equipment, software, and infrastructure. Furthermore, outsourcing allows businesses to benefit from economies of scale. Service providers often work with multiple clients, which means they can spread the cost of investments in technology and expertise across their customer base.

Outsourcing to specialized providers such as General Informatics ensures access to advanced security technologies that may be cost-prohibitive for businesses to implement on their own. This is where outsourcing IT and security services comes into play. By delegating these critical functions to specialized third-party providers such as General Informatics, businesses can tap into a wealth of expertise, game-changing technologies, and cost-effective solutions.

Running the Numbers

An IT Staff of 5
 

Salaries: The average salary for an IT professional can vary widely depending on experience and the role. For the sake of this comparison, let’s assume an average salary of $60,000 for each IT staff member.

Total for staff of 5: $60,000 x 5 = $300,000

Benefits: This typically includes health insurance, retirement contributions, and other perks. It’s common for benefits to cost an additional 20-30% of the base salary.

Total for staff of 5: $300,000 x 25% (average) = $75,000

Training and Development: IT staff need to be updated with the latest technologies, which requires regular training. Let’s assume an annual training budget of $2,000 per staff member.

Total for staff of 5: $2,000 x 5 = $10,000

Overhead Costs: This includes office space, utilities, equipment, software licenses, etc. Assuming an overhead cost of $10,000 per staff member per year.

Using a Managed Services Provider
 

Monthly Fee: MSPs typically charge a monthly fee based on the services provided. This fee can vary widely, but for the sake of this comparison, let’s assume a monthly fee of $8,000.

Annual cost: $8,000 x 12 = $96,000

Setup or Onboarding: Some MSPs might charge a one-time setup or onboarding fee. Let’s assume this fee is $5,000

Additional Costs: There might be additional costs for projects, services, or overages. Let’s budget $10,000 per year for these costs.

Comparison & Savings:

 

An IT Staff of 5: $435,000

Managed Services Provider: $111,000

Difference: $435,000 – $111,000 = $324,000 in savings

In Conclusion…

 

Based on these illustrative figures, using an MSP could result in savings of $324,000 annually compared to hiring an IT staff of 5 people. However, it’s essential to note that the actual costs can vary based on the specific needs, region, and other factors. It’s also crucial to consider the quality of service, response times, and other non-monetary factors when making a final decision.

The benefits of outsourcing your IT can be substantial, especially for small and medium sized businesses. Outsourced IT providers often operate on a subscription or contract basis, allowing businesses to have a predictable and manageable budget, without unexpected costly expenses. Reach out to our experienced professionals here at General Informatics today to discover how we can enhance your operational efficiency, reduce costs, and ultimately contribute to improving your bottom line.

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Meet Our CEO & President

Don Monistere

Don Monistere is an Entrepreneur, Published Author and Accomplished Executive.

Monistere is the CEO and President of General Informatics. Monistere joined the General Informatics team in 2020 and has been actively growing its reach since. General Informatics is one of the fastest growing IT services providers in the Southeast and is considered the leading IT partner for businesses, schools, government agencies, and for the financial and maritime industry.

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Maximizing Returns: The ROI of Outsourcing IT and Security Services for Businesses

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