Saving Money with an MSP
Posted 21 Nov at 8:15 pm in Productivity
While it may sound like it, an MSP promising to save you money really isn’t too unlikely. As technology advances, so do companies’ tech stacks. The cost of business, employment, keeping up with tech and infrastructure advancements, etc., can all become very expensive very fast. Today we’re discussing how companies find themselves saving money with an MSP on a number of fronts.
Understanding the Financial Benefits of MSPs
Direct Cost Savings
One of the most immediate benefits of working with an MSP is the direct cost savings. Statistics show that 56% of companies report significant cost savings from having an MSP. This is because MSPs offer a range of services, from routine maintenance to advanced cybersecurity measures, at a fraction of the cost of maintaining an internal IT team. By outsourcing to MSPs, businesses typically see cost savings of 30–40% compared to managing IT services internally.
Reduction in Overheads and Hidden Costs
Beyond direct cost savings, MSPs help businesses reduce overhead and hidden costs. This includes soft cost savings like a 10% reduction in overall workforce management administrative expenses. MSPs achieve this by streamlining processes such as procurement, HR, and management activities, which often consume significant resources in businesses.
MSPs help reduce employment-related costs by lowering turnover rates and overtime expenses through better management of contingent resources. This means businesses can allocate their human and financial resources more effectively, focusing on core business activities while the MSP handles IT-related tasks.
Saving money with an MSP goes far beyond just the salary of a full-time IT employee. For instance, companies will find savings through:
- There are no IT team taxes, benefits, or insurance to pay.
- No need for extra training; you are hiring experts
- Reduced downtime means more money for you. How does an MSP reduce downtime, you may ask? Well, on the chance that an in-house resource is capable of handling all aspects of your company’s technological needs, they cannot be in all places at once, serving multiple employees at a time.
- MSPs work closely with tech vendors, which will open you up to a world of discounts from them through us (the MSP)
- Reduced cost-to-hire and time-to-hire. Hiring an IT professional can take time, and recruiting costs can quickly become pricey. With an MSP, the recruiting has already been done for you.
- An MSP won’t quit on you; generally, MSPs will not leave a contract—that is up to the client.
Access to Expertise and Advanced Technologies
MSPs bring a wealth of expertise and access to advanced technologies that many businesses wouldn’t have otherwise. This access ensures that companies remain up-to-date with the latest IT trends and practices, giving them an edge in a technologically driven market. All of this comes at a similar cost to what one full-time employee may cost.
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