As a small business owner in Houston, Texas, you are always looking for ways to save money and improve efficiency. One area where many small businesses overlook potential savings is IT support for small businesses.
With the growing focus on cybersecurity and data analytics, outsourcing IT support has become a strategic necessity. In fact, a recent study in the Deloitte 2023 Global Outsourcing Survey mentioned that 81% of executives turn to third-party vendors for cybersecurity.
Here we have a breakdown of the general cost of hiring an in-house IT team and outsourcing IT support in Houston.
The Costs of Maintaining an In-House IT Staff
Having an in-house IT team means there will be several costs involved that can quickly add up. We have a general breakdown of the typical expenses:
1. Salaries
Paying salaries for IT professionals can be one of the biggest expenses, especially for small businesses. In Houston, the average salary for an IT specialist can be somewhere around $60,000 to $90,000 per year. This also depends on the experience and skill level.
These salary ranges can be hard to defend for a small business that often has little funding, particularly if there is not enough daily IT work to support a full-time position.
2. Benefits and Taxes
On top of salaries, you will need to factor in benefits like health insurance, paid time off, and retirement contributions. You can count these benefits as an additional 20-30% on top of an employee’s salary.
For example, if your in-house IT professional makes $70,000 a year, you could be paying an additional $14,000 to $21,000 for benefits.
3. Training and Development
Technology changes fast, and keeping your IT staff updated with the latest certifications and training is essential. Whether it is training on the newest software or upgrading skills to keep These initiatives, which address cybersecurity risks, can cost $1,000 to $5,000 annually per employee.
If you have multiple IT staff members, this cost can multiply quickly and become a significant financial commitment for a small business.
4. Hardware, Software, and Tools
To keep your IT team running efficiently, you will need to provide them with the necessary hardware, software, and tools. This includes servers, computers, security software, backup systems, and monitoring tools. For example:
- Servers and Networking Hardware (can cost between $5,000 and $50,000)
- Software Licenses (can cost somewhere around $1,000 to $10,000)
- Additional Tools like network monitoring software, antivirus solutions, and system management platforms.
Hidden Costs of In-House IT Teams
1. Recruitment and Retention
Finding skilled IT professionals isn’t easy. In a city like Houston, where competition for top tech talent is fierce, recruitment can be costly and time-consuming. Small businesses often don’t have the resources to compete with large corporations offering higher salaries, which means they might struggle to attract and retain the right talent.
Recruitment costs can include advertising, staffing agency fees, interview processes, and hiring events. After hiring, there are expenses for training and onboarding to bring the new employee up to speed.
2. Turnover and Lost Productivity
Employee turnover in IT roles can be especially costly. If your in-house IT team member leaves, there are additional costs to recruit, hire, and train a replacement. During the transition period, productivity could drop as systems are left unmonitored or technical issues go unresolved.
This downtime and reduced productivity can be detrimental to small businesses, especially those operating with tight budgets.
3. Unexpected IT Failures
IT problems rarely come with a warning. When issues do arise, an in-house team might not always be available, leading to expensive emergency repairs. Outsourcing IT support, on the other hand, allows you to get immediate assistance without having to deal with these surprise costs.
Why Outsourcing IT Support for Small Businesses Is the Smarter Option
Now that we have broken down the costs of an in-house IT team, let us take a look at why many Houston companies are outsourcing IT support in Houston and why it is a much more cost-effective choice for small businesses in Houston.
1. Lower Overhead Costs
Outsourcing IT support for small businesses removes the need for expensive hiring, benefits, training, and salaries. Instead, you pay a fixed monthly fee for IT support based on your business’s needs.
Also, the same study by Deloitte mentioned above shows that that businesses that outsource their IT services saves up to 30% on their savings compared to what they would if they hired an in-house management
2. Access to Expertise
Outsourcing gives you access to a group of highly qualified IT specialists with a variety of specialties. An outsourced IT provider has the know-how and resources to help with any system administration, network management, or cybersecurity issues you may have. This level of expertise is often hard to find within the budget of a small business in Houston.
3. Scalability
Outsourced IT support can easily scale with your business. As your company grows, your IT needs evolve, and an external provider can adjust services to meet those needs without the burden of hiring additional staff.
4. Focus on Core Business Activities
You can free up your team’s time to concentrate on what they do best, which is managing and expanding the company, by outsourcing IT support. You won’t need to waste time troubleshooting tech issues or managing hardware, which ultimately boosts productivity.
The Bottom Line
So, outsourcing IT support for small businesses can simply help save money. Budget, especially for small-sized businesses and startups, is often an issue. Therefore, outsourcing IT support services to a professional IT support team for small businesses in Houston seems to be the best deal.
For IT support for small businesses in Houston, get in touch with IT Cloud Global right now.