IT ROI Analysis: How Managed IT Services Can Generate Better ROI for business owners?
Digital is disrupting the way we do business and information technology budgets are merely adjusting to the demands of the organizations.
However, when operational costs are soaring, and IT trends on the run, your IT department can seem more like a cost center rather than an investment. A catastrophe would be to raise your IT spends blindly without proper planning and consultation. As a result, you’re left fending with losses.
IT ROI Analysis Reveals How Managed IT Can Maximize Your IT Spend
When outsourcing your IT, the obvious question in mind – if your Managed Service Provider (MSP) can help you increase your return on investment (ROI) or not?
Let’s expound on different scenarios when Managed IT Services can provide more than savings, essentially a higher ROI –
Curbing Revenue Loss from Downtime
Delta airlines had to cancel 280 flights due to an outage in 2017. The loss from a single outage incident was over 150 million.
Delta Airlines computer outage is a prime example of how downtime can cause great loss.
You can figure out the number of hours each month your email, internet, servers, desktop or any other IT devices were non-functional and again calculate average employee salary at a location impacted by downtime.
To calculate Cost of Downtime –
“Lost Revenue + Lost Productivity + Recovery Costs + Intangible Costs”
Downtime can significantly impact your revenue if you have a highly specialized organization such as law or finance firm. This means that your most valuable assets are sitting idle.
Here is how MSPs can minimize downtime –
• Greater accessibility with a range of cloud services
• Dedicated experts who monitor and maintain your IT systems 24/7
• A proactive approach to threat detection and prevention
• Working with familiar IT infrastructure
• Redundant data backups to recover any data lost
Better IT Vendor Management
You might be dealing with a different number of vendors for your company’s IT needs. With most small businesses, IT vendor management is taken by one or more employees as a secondary role.
Your organization can determine current and predicted annual productivity loss faced due to time spend on managing vendors.
Review the number of IT vendors and consult the primary people dealing with the vendors. Talking to your employees will give you an idea of average hours spent working with each vendor each month. Multiply with the average hourly wage of this person and you’ll get an essential vendor management cost.
Employing an MSP for vendor management can help –
• Your employees focus more on customers and other business processes.
• With detailed metrics for each vendor
• Analyze data and produce meaningful results
• Responsible supplier management services to improve vendor performance
Most managed IT supports have already been doing business with several companies and have an existing working/contractual relationship with multiple vendors, which help expedite the vendor management process.
Balancing Staff Spends on IT Functions
Your staff could be spending more time dealing or performing IT functions. Determining the hours, your team spend performing IT functions and multiplying them by the average hourly rate of the people performing these tasks will give you an approximate staff spend on IT functions.
Your MSP gives you the same benefit as a dedicated onsite team, streamlining your processes to improve work quality and reduce the time cycle.
It makes more sense for small and medium enterprises to hire a dedicated MSP in comparison to an exclusive IT staff. This way, you can have a whole lot of IT support starting from help desk staff to network and security administrators to database administrators.
Here are some highlights of how an MSP can help you maintain spend on IT functions –
• Fixed fee per month for all required services
• New expertise at negotiated costs with minimal delays
• The better calculation for human component in ROI
• Save on the value of hiring, training, administration and fees which go along with IT staff payroll
Collaborate with Discovernet
At Discovernet, we provide Managed IT support and IT solutions for business owners that helps them improve their workflow and generate higher ROI on their IT spends. We help you improve your market position through greater efficiency, transparency and reduced operational costs. We have a proven track record of providing organizations with IT stability and round-the-clock Help Desk support. We believe that technology should not be a burden on your business, preferably a medium to grow, helping you do what you’re best.