How Much Does an Internal IT Department Really Cost?

Posted: June 9, 2022

ROI—return on investment—is an important metric to measure for every aspect of your business. This includes the costs that maintaining your business technology accrues beyond the cost of acquisition and ownership. Let’s go over how you can examine your own IT costs and determine if your approach is the most financially feasible one for your needs.

To begin, let’s examine how the average IT department’s costs total up.

How Can You Calculate the Cost of Your IT Department?

Let’s assume that, for the sake of our example, you have one or two employees charged with maintaining your company’s IT. The first aspect you need to consider as you total up your IT department’s costs is the payroll that is spent on time committed to your business’ IT directly.

For instance, if you have two employees who each earn a salary of $65,000 per year and spend three-quarters of their time directly managing your business’ IT, you’re indirectly committing $97,500 to IT. With a dedicated team, you can count 100 percent of their compensation as IT costs. Be sure to take benefits and everything else into consideration, too.

Of course, the costs don’t stop here. In order to properly do their jobs, your IT staff members will need to continue their education to pick up on new best practices and techniques. These training sessions and class subscriptions should factor into your cost analysis, as should any travel your team partakes in—-either using a company vehicle or reimbursing them for the use of their own.

There are also the costs associated with maintaining various compliance standards, depending on your industry or security requirements, that need to be factored in as well.

All in all, this boosts the $97.5k payroll investment significantly… and that’s before you even take the other IT costs into account. You also have to supply your staff with the requisite equipment—computers and mobile devices—while also maintaining them. Any cloud subscriptions and software licenses are also considered IT costs and need to be factored in.

This is a lot to juggle, especially for a small or medium-sized business.

Consider Leaning on Us for IT Assistance

While we don’t want to discourage you from hiring additional IT team members, turning to a managed service provider like Digital Sky Solutions is an alternative that can prove more cost-effective for you in the short and long term. With a comprehensive collection of IT services and management provided in exchange for a predetermined monthly service charge, we’ll be able to make your use of your business’ IT that much more effective.

We’re actually pretty unique, as far as other IT companies in the Victoria area. We don’t base our entire business on swooping in and taking over for your internal IT department. We’re not out for your IT departments’ jobs. We can come in, help with a pain point, and provide whatever specific type of support or assistance your organization needs.

We’re really good at handling complex migrations and other projects that your internal department might have a lack of experience or time to tackle appropriately, or we can handle the day-to-day maintenance and support while your team takes on a complicated project.

Give us a call at (250) 483-5623 to learn more.

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