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Small Business IT Support Pricing Explained

What is the average cost of IT support services for small businesses? You’ll find out in this informative article that breaks down the costs and different IT support pricing models.

Every entrepreneur feels the pinch of unforeseen expenses, especially when it comes to IT-related disruptions. But what if there was a strategy to minimize or even sidestep these costs?

A study by Orange Matter revealed that the average cost of an unexpected IT disruption can range from as little as $427 to as much as $9,000 per minute. When you do the math, an hour of downtime could cost you between $25,620 and $540,000.

The real cost of IT support isn’t just about the financial aspect,” explains Jason Harlam, Business Development Manager at Technology Advisory Group, “It’s about having a robust and tested business continuity plan that allows you to resume normal operations faster.”

Given the plethora of service packages and pricing structures, pinpointing the average cost of IT support services can be a challenge. In this article, we’ll explore small business IT support pricing to guide you in making an informed decision for your business.

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Why More Companies Opt for Outsourced IT Support Over In-House Teams

Two main factors drive the trend towards IT outsourcing: cost and complexity.

Maintaining an internal IT crew demands substantial resources, from salaries and benefits to continuous training.

With IT salaries often exceeding six figures, sustaining an in-house IT team is becoming increasingly untenable for businesses of all sizes. And that’s without factoring in the frequent turnover due to job dissatisfaction.

The evolving complexity of IT systems, covering areas like cybersecurity, cloud solutions, and data analytics, often necessitates specialized knowledge. This makes it tough for small to mid-sized businesses to keep an in-house IT team that’s both versatile and updated.

Further complicating this situation is the fact that there is presently a 76% talent shortage in the IT and technology industry. To that extent, 97% of IT departments in mid-market organizations stated that they faced hiring challenges over the past year as a result.

Opting for managed IT services offers a more adaptable solution. Businesses can outsource IT support and only pay for the services they need, leading to substantial savings, especially for those on a tight budget.

A Dynamic IT Support Market

The IT support sector is evolving rapidly and is poised for sustained growth. In 2022, the global professional services market was worth $821.58 billion, with a projected compound annual growth rate (CAGR) of 7% from 2023 to 2030.

This growth is fueled by changing customer preferences, such as the desire for personalized pricing models and enhanced customer service experiences. The COVID-19 pandemic also played a role, pushing the industry to adapt to remote work and modify their strategies.

Determinants of IT Support Costs

Types of Services

Whether you’re seeking on-site assistance or remote support, your service needs will directly impact the cost. Consider your requirements: During standard business hours, or do you need more?

Technical Expertise

The average cost of IT support services can fluctuate based on the provider’s proficiency. Specialized assistance might come at a higher price, but the peace of mind and service quality can justify the cost.

IT Infrastructure Size and Complexity

The intricacy of your IT setup, from the number of devices to specific software requirements, can impact your IT support costs.

Making Sense of IT Support Pricing Models

A Comparison of the Different Types of IT Support Pricing

Pricing Model Pros Cons Best Choice For
Per Hour / Incident (Break-Fix) -Pay only when you need support

-No monthly commitments

-Can be more expensive in the long run
-Unpredictable costs -Might not prioritize preventive measures
Businesses with infrequent IT issues or those with a tight budget for IT support.
Monthly Retainer -Predictable costs

-Guaranteed support for a set number of hours/incidents

-Can be more cost-effective than break-fix

-Might have to pay for unused hours

-Less flexibility if needs change mid-contract

-Can be reactive rather than proactive

Businesses that require regular IT support but don’t have extensive or complex IT needs.
Managed IT Services -Comprehensive support

-Proactive maintenance and monitoring

-Predictable monthly costs

-Might be more expensive for very small businesses

-Might have to pay for unutilized services

Businesses with complex IT setups or those that prefer an all-inclusive approach to IT management.

Now that you have a good understanding of the factors that can impact IT support pricing, let’s examine some of the pricing models commonly used by IT support providers.

Per Hour or Incident

Also known as break-fix, you pay only when assistance is needed. While cost-effective for some businesses, the average cost for IT support per hour might be steeper compared to other models. Typically, break-fix costs range from $135 to $350 per hour.

Monthly or Yearly Retainers

Here, you pay a fixed monthly fee for a designated number of hours or incidents, providing predictability in expenses. On average, retainers start at about $1,500 monthly, covering approximately 8-10 hours of support. The hourly rate usually lies between $125 and $250, sometimes with a one or two-hour minimum.

Managed IT Services

This all-inclusive model charges a flat rate for all IT requirements and often covers remote monitoring and proactive maintenance. Billing is usually per user, device, or server, with rates between $100 and $150. All-inclusive managed IT services can range from $150 to $300.

Potential Additional Expenses

Apart from the primary support services, there might be other costs to consider, including:

Training and Integration

Introducing a new support team might have its associated expenses in terms of time and resources. Research shows that the average cost of onboarding new hires is approximately $4,100 per employee.

Specialized Tools

Some tools might be part of your service package, while others could incur additional costs, especially if multiple licenses are needed. Be sure to get clarification on this from your provider.

The Value of Investing in Dependable IT Support

It’s important to reflect on the potential expenses of inadequate IT support, from lost sales due to website issues to the immeasurable expenses of data breaches.

Investing in top-quality IT support not only guarantees smooth day-to-day operations but also equips you for dealing with unexpected challenges.

Interested in learning more about IT support services? Check out these blogs:

 

Optimize Your IT Support Costs With Technology Advisory Group

Making sense of the average cost of IT support for small business is vital for budgeting and ensuring optimal value. With the digital realm continually evolving, having access to dependable IT support has become more indispensable than ever before.

Technology Advisory Group is a premier IT support provider, dedicated to rapid resolutions for businesses of all sizes. Backed by more than 25 years of expertise and the trust of over 75 active clients, our services can resolve over 98% of issues remotely.

Don’t let recurring IT challenges drain your resources. Contact us today for more insight on our IT support pricing and to schedule a free consultation.

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