The True Cost of Your IT Managed Service Provider: 5 Common Mistakes

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What should I pay for IT Support? At first, this seems like a very straightforward question, but it becomes very complicated.

The cost should be the amount of the invoice your IT managed service provider sends you, but as always, we encounter the problems that the word ‘should’ entails; we often end up paying more than we should, for worse service than we should get.

This is the mistake most people make when looking at what they pay for IT support. To calculate the true cost, one must factor any performance issues that might be sapping the users or the organization as a whole.

When you factor in these indirect costs, your total spend for technology may skyrocket above that invoice amount. The best way to break it down is to separate it into 5 different categories.

The 5 most commonly overlooked indirect costs:

  1. Operator Issues. Any time an operator has a problem, multiply that time by 3 and then apply it to your payroll burden. The 3 factors we must look at are; calculating the time of the problem, losing productivity before getting back on track, and time spent trying to find a resolution.
  2. Downtime. When systems fail, you have to consider their purpose and impact. If it’s the shipment labeling system, what’s the cost of the labor spent fixing the problem? Furthermore, what's the cost of delays in shipment? Your mail system might delay users from working on projects or communicating with clients.
  3. Business System Issues. If your main line of business system has problems such as printing, downtime, and user interruptions – your operation could come to a complete stop. Time spent resolving these issues and lost worker productivity rack up fast and the time spent fixing these problems can never be recovered.
  4. Viruses/Malware. Anytime a user detects a virus, there is going to be a significant impact. In the best case, the virus is limited to that user, but often times it turns out to be something far worse; it could be a bot that shuts down parts, or even all of your network. Expect it to take hours to recover back to normal operation. Want more information about Malware? Here’s how to protect yourself.
  5. Personal Use. Most businesses want the employees working when they are at work. Yet, a majority of users will use their work systems to conduct personal business. Facebook, Amazon, etc. These time wasters can be limited or prevented.

What’s the big deal?

Many organizations trying to maximize profits and reduce costs will erroneously manage a support relationship based on the direct cost of the support.

They end up paying too little for support thinking they are getting a good deal, but due to the poor quality of support they bought, they have much higher indirect costs. The organization suffers even though they think they are saving that hard earned cash.

Slow Computer Cost Calculator

Have you ever considered how much technology issues cost your company? How much time your team spends staring at a spinning color wheel? It adds up!

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