Pricing has always been painful for Chief Information Officers (CIOs), business owners, and decision-makers. Many focus on saving on IT costs and expenses rather than recognising the value it brings to organisations. Cost is just one piece of the puzzle. That’s where managed IT support creates an affordable pricing package that can enhance operational efficiency.
Each organisation has distinct infrastructures that influence the complexity and cost of their IT. It’s essential to look beyond the initial costs presented by a managed IT service calculator and work closely with the right partners to assess multiple factors, such as industry-specific requirements, size and scope of the infrastructure, the level of support required, and future growth potential.
Having IT is not an option anymore but a necessity. But as operations become more intertwined with systems and infrastructures, organisations struggle with escalating costs. If not handled correctly, it can quickly go haywire. IT service packages are a strategic solution to this dilemma. Managed Service Providers (MSPs) offer this to organisations to help them harness advanced IT support without burning their pockets.
From our time providing managed IT services to over 900 clients in Perth, Melbourne, Sydney, and the USA, we’ve solidified our service offerings to fit industry standards. Observing our client's needs, budgets, and larger objectives has allowed our team to gain a comprehensive understanding of the most popular and necessary managed IT service packages and market pricing. Now, we share that knowledge with you, exploring the ins and outs of IT service packages including types of managed it service packages, their price, and how to select the right one for you.
What are Managed IT Services?
Managed IT services refer to a strategic approach to IT management wherein organisations partner with Managed Service Providers (MSPs) to handle their technological needs. By outsourcing essential functions to specialised third-party vendors, organisations can access cutting-edge technologies and expertise without the overhead costs of hiring an in-house IT team.
While IT service providers foster your complex IT challenges, you can focus on cultivating innovation and growth. This approach can help organisations, especially disadvantageous SMBs, due to the lack of a dedicated IT team.
What is an example of a managed IT service?
One great example of a managed IT service is when an organisation requires assistance with their cloud-based solutions. Managed services enable organisations to delegate their complex IT operations to specialised providers who oversee the monitoring, management, and maintenance of their systems.
Ultimately, this provides access to advanced technologies and expertise without the need for a significant investment in infrastructure or personnel to handle these resources internally.
What should be included in IT-managed services?
If you’re looking for what is included in managed IT services that will support your team during technical glitches, and times of cyber security threats and also enhance the efficiency of your work then you’ll require:
- IT support – to ensure that technical glitches get resolved swiftly
- Cyber security – to protect your data from evolving threats
- Cloud computing – providing enhanced flexibility, scalability, and productivity.
Another critical IT service is the virtual Chief Information Officer (vCIO), which bridges the gap between technology and strategy, followed by IT projects, which help project design and implementation be a breeze, and communications for unifying teams with business-grade connections and phones.
The ultimate goal of hiring an MSP is to unlock the potential of your internal teams. With external experts managing day-to-day IT functions you can redirect more time and resources towards innovation and growth initiatives.
Common Types of Managed IT Service Packages and Pricing
When looking at IT service packages, you may encounter several prices that cater to different needs and budgets. We’ll cover two of the most typical models and the ones we offer here at Office Solutions IT:
Essentials
Essentials IT Support – also known as the break-fix model – is a pricing model that allows organisations to pay only for services as needed. This model lets organisations allocate resources more effectively and avoid committing to monthly subscription fees.
The Essentials service package is particularly beneficial for SMBs with low or limited budgets or who require IT support for the occasional tech glitches. You can think of this as the firefighters to put out an IT-related incident and manage your challenges.
So rather than shelling out fixed monthly fees for services that you (may or) may not fully utilise, you can only pay for the support you need when an issue comes. One downside is the price for this managed IT service package can be predictable as costs can depend on the level of support you need.
Managed IT
If your organisation is looking for predictable pricing, then IT service packages may be the right option for you. Unlike traditional billing models, which can change every month based on usage and incidents, a managed IT flat fee rate will allow you to budget more effectively.
When you hire an MSP, they are in charge of maintaining and optimising your entire IT ecosystem. Due to this, you can enhance your system’s reliability and swiftly adapt to emerging technologies and threats. Although, take note of all the services and add-ons in your Service Level Agreement (SLA) to cover all that needs attention.
Managed IT service packages are a game changer. On top of eliminating cost uncertainties, it simplifies your budgeting and financial planning so you can better strategise your growth initiatives without the sudden spikes in your IT expenditures.
Ultimately, this is not all about reducing cost, but using technology as a strategic asset for your organisation.
Factors That Influence Managed IT Service Package Pricing
Several factors can shape the pricing of your IT service packages. Weighing these factors can help you invest in the right IT solutions that maximise benefits and budget.
Service Demands
What kind of IT services does your organisation need?
If you’re in a fast-paced industry, you’ll need to assess staff capability and response times, and with that. You’ll need a 24/7 support model that ensures help is available around the clock. However, this level of constant availability usually comes with a higher price tag than more limited service options.
It’s fundamental to align your chosen managed IT service package with your unique requirements so you’re paying for services that you’ll use. Conduct a thorough IT infrastructure and operations audit to uncover undiscovered needs that can drive your business forward. Analyse your existing systems, functions, and workflows to gain insights on which needs more investment.
Number of users
Almost all businesses now require IT. The more users you have, the more you spend on your managed IT support. And that cost will only escalate as your business grows. Managed Service Providers (MSPs) offer an average of AUD 70 to AUD 150 per user on primary support.
If you have a remote team, take note of the price difference in IT service packages compared to on-site teams. They incorporate higher costs associated with secure connection setups, software licenses, and support systems that can handle diverse home office setups.
Number of devices
Another factor that affects managed IT service packages is the number of devices you use. Similar to the number of users, the number of devices you have (especially those that need ongoing support, maintenance, and security) can significantly affect total expenses and the complexity of ensuring all systems function cohesively.
Complexity & Standards
Organisations that only require first-level support and maintenance can expect a reasonably low IT cost. However, more complex IT systems require a higher calibre of support, as experts are often required to troubleshoot significant issues and implement solutions.
Industry standards can also affect your IT’s overall complexity, especially in sectors like finance and healthcare, where regulatory compliance is critical. MSPs will typically create IT service packages tailored to specific industries, which can come at a premium price due to the added services required.
This factor is critical as it’s a non-negotiable component wherein you can reduce operational risks and acquire long-term benefits like minimised downtime, enhanced data protection, and increased team productivity.
Service Level Agreement (SLA)
You get an SLA when you outsource your managed IT support services to an IT service provider.
An SLA is a roadmap that outlines expectations, responsibilities, and expected outcomes between your organisation and the outsourced IT team. It includes (but is not limited to) outlining and aligning an MSP’s services with your organisation’s requirements to ensure all parties are on the same page regarding service quality and performance.
SLA requirements are essential in your managed IT service package and pricing. Because higher SLA requirements often lead to increased premium costs. Although it can be tempting to lower your SLA, it can jeopardise your business continuity and service reliability. Yes, SLAs can be costly if they include all the services you need, but they can serve as your defence against potential disruptions and enhance operations.
Tips for Selecting the Right Managed IT Service Package
Managed Services Providers (MSP) can make all the difference in sustaining productivity and innovation within your organisation, but only if you find the right one. Here’s how to find them:
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Assess your business needs
When you take the time to assess your business needs, you streamline the process of looking for suitable IT services packages. This approach will help you clarify what you genuinely need and pinpoint gaps in your current systems to your MSP.
A proactive IT service provider should introduce a step-by-step process when assessing your business needs so you can prioritise the services that can address your immediate needs while laying the groundwork for future enhancements. With this approach, you can choose the right IT package and pricing.
Moreover, this continuously lets you monitor the ROI from managed IT support. Because you can assess performance metrics and get insights on what works best as you roll out each phase and strategically allocate your resources to services that can stimulate growth across your organisation. -
Consider Scalability Options
Always look into how your outsourced IT support team will help you scale and how their managed IT service package offers align with your organisation’s future trajectory.
As technology evolves every year, IT service providers should adapt their services to help you keep up with demands and competition. Explore how their packages include flexible solutions, such as cloud-based or automated solutions, which can scale according to demands without disrupting operations. -
Review Pricing Structures (and any hidden costs)
Understand how your MSP calculates the cost of your IT to avoid any unexpected charges that may disrupt your budget.
We’ve seen many organisations – especially SMBs – fall into the trap of assuming their IT services packages come with straightforward pricing only to see hidden charges for various reasons. No one wants that. Even we don’t want that.
That’s why you and your Outsourced IT team need to build a transparent partnership. Ensure that your outsourced IT support explicitly outlines cost variables so you can make informed decisions and financial plans. -
Always Look at the Value, Not the Price!
Yes, managed IT service packages can be costly. Even we find them expensive. But think about the value it brings to your organisation. Many make the mistake of solely focusing on costs and neglecting the benefits, making them lose out on opportunities from cost-effective solutions to enhanced operations.
If you’re on a tight budget and want the extra precaution, you can always compare IT service packages between providers to see which partnership can propel your business forward. -
Check Support Availability
Aside from the price of your managed IT service package, dive into your IT service provider's specific offerings and assets and how they align with your organisational needs.
Not all MSPs are the same, as some excel in cyber security while others thrive in cloud solutions. So, during the initial consultations, ask about their experiences and strategies in your industry – this is where you can figure out if they understand your organisation and can adapt to your dynamic challenges. -
Analyse Security Measures Provided
Cyber security is a non-negotiable IT service for organisations of all types and sizes. In this fast-paced world of evolving cyber threats, a robust disaster recovery plan is essential to keep things up and running even during a cyber attack.
When assessing a IT service package, check if it includes comprehensive disaster recovery efforts, as it will safeguard your operations against the unpredictable nature of today’s business and cyber landscape.
Looking for Reasonably Priced Managed IT Service Packages?
No two organisations are alike. Each has unique challenges and opportunities requiring tailored IT solutions. IT is never just an operational cost. It’s a strategic advantage that can bring you to new heights (if done the right way).
Your IT should work for you, not against you. That’s why in Office Solutions IT, we offer managed IT service packages designed with flexibility and cost-effectiveness. We tailor each package to align with your requirements and provide the tools you need to harness your full potential without worrying about how much it will hurt your pockets.
Think of it as having the benefits of having an in-house IT team and a Managed Service Provider. We consider your IT an extension of our own and understand your unique challenges and aspirations. Our managed IT services can seamlessly merge with your existing operations so you can focus on what you do best – growing your business.
Get started by filling out our managed IT support service calculator and get an estimate of how much your IT needs will cost based on your specifications.
