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To outsource or not outsource IT? For Los Angeles small businesses, that often is the question.

Of course, the answer is not so simple. On one hand, having an in-house specialist (or multiple specialists) offers a certain peace of mind. If there’s a problem with your IT, someone down the hall is available to fix the problem. On the other hand, turning to a managed service provider (MSP) delivers small businesses a level of convenience and a different peace of mind in knowing that they won’t be flying blind with their technology.

An objection to using a managed services provider might be pricing. The cost can seem unreasonable for small businesses wondering if having someone in-house is a better alternative. Examining the costs of an MSP versus hiring a dedicated IT person is important to determine which truly is the more cost-efficient option. The results may surprise you.

What Should You Spend on IT?

Naturally, a small business’s IT budget depends on plenty of factors, including number of employees, e-commerce capabilities, the nature of the business’s product or service, and so on. There is no magic number or percentage that works for every organization. However, research has shown that small businesses tend to spend a greater percentage of their overall revenue on IT than their midsized and large counterparts. This could suggest that technology impacts small businesses more (and is thus more expensive), and it also could suggest that these organizations are spending too much to secure the IT they require. You must budget enough so that your IT works for you and your customers, but be careful not to spend too much and cut into your bottom line.

Ask Yourself Some Questions

Assessing your IT requirements is imperative to establishing a budget and determining if the pricing of a managed services provider fits your game plan. Some questions to ask yourself include:

  • How much computing power do you require to effectively run the business?
  • How much do your customers interact with your technology?
  • Do you engage in e-commerce to sell your product?
  • If your systems suddenly went down, how much business would be lost in the downtime?
  • Do many of your employees work remotely?
  • How often are your systems targeted by cyberattacks?
  • Is anyone currently on staff capable of handling an IT crisis?

Answering these questions can give you a better idea of what you need to spend on IT—and whether a managed service provider is worth the price.

Location Matters

Small businesses in small towns face a challenge: The amount of IT talent in their regions might be limited, so hiring in-house can be difficult. Alternately, IT experts in tech-heavy areas such as San Francisco or Austin can be challenging to hire—you may not have the budget to pay what these specialists can command. Fortunately, Los Angeles doesn’t encounter either scenario, though as a big city, you will still need to provide a decent salary to hire in-house. That said, LA tech talent is strong, and whether you outsource or put someone on payroll, you can find the expertise you seek.

The Showdown: MSPs vs. In-House IT

Here is the MSP/in-house comparison this post has been building up to—and this is where the surprises start rolling in. These comparisons show the cost-effectiveness of managed services provider pricing:

  • Technical support: If something goes wrong with your IT, yes, your salaried tech may be able to fix the problem during office hours, but what happens if your computer melts down when your business is on the clock but your IT person isn’t? Or what if your tech is on vacation? The downtime can be costly—but it’s avoidable if an MSP is just a phone call away.
  • Technology development: Few individual IT specialists are experts in everything. If you want to expand your technology into an area your salaried tech isn’t proficient, the process will be slow and costly, or you’ll be paying a third party to do the job on top of what you already pay your in-house person. MSPs are experts in multiple disciplines (and constantly updating their skills) so that however you want to expand, your partner will be up to the task.
  • Turnover: What happens when your in-house IT person—who holds all the knowledge of your technology workings—moves on to the next stage of his or her career? Not only will you need to hire a replacement, but you also must replace the established IT intelligence specific to your business. With an MSP, you don’t run that risk.
  • Total costs: Hiring someone in-house involves more than just a salary. You must also consider health insurance, 401(k), vacation time, overtime, hiring costs, training, development, and so on. These costs add up—and often might be more than working with an MSP.
  • Expertise: The person you hire might be an expert in some areas and not as proficient in others. As already stated, any knowledge gaps may lead to hiring a third party anyway, or you can assemble a team of techs and watch your IT budget balloon. An MSP delivers that team, but for a reasonable cost.

Finding the IT Knowledge You Need

Another challenge for small businesses with IT talent is that, not knowing much about technology, they don’t know what to look for when evaluating someone for an in-house position. Hire the wrong person, and costs can skyrocket. The best managed service providers deliver experience without a lot of sweat on your part. This gives you the confidence that your IT will be handled the right way and frees you up to concentrate on what you do best: running and growing a successful business.

26 thoughts on “Los Angeles Managed Services Provider Pricing vs. Hiring In-House IT

  1. In my opinion I think proper Los Angeles IT Consulting should be done before settling on whether to go with an MSP or handle things in-house. It’s a pretty delicate process.

  2. IT Outsourcing in Los Angeles is a very cost effective ways for small business to have some good IT support. Sometimes doing it in-house is just too expensive.

  3. Enlisting the services of a Los Angeles Managed Service Provider is one of the best decisions any company can make. It frees them up to focus on the more important aspects of their business.

  4. Outsourcing is a very convenient way for less able companies to get access to reliable IT Service & Support. The advantages of outsourcing over having an in-house solution are quite clear cut as detailed in the article.

  5. The best way to access IT services in the LA area is to do it through outsourcing. Sometimes a company just doesn’t have enough money to afford a dedicated IT team.

  6. As for me more often than not IT Services should be in house. If a business is small for example hiring outside could mean additional cost. Why should I hire if I can just train my staff. It is very beneficial in the long run.

  7. In today’s competitive corporate world, IT services are necessary to be on top level. I think outsourcing is a smart choice.

  8. Managed Service Provider gives you the confidence that your IT will be handled the right way and frees you up to concentrate on what you do best: running and growing a successful business. The best managed service providers deliver experience without a lot of sweat on your part. Thanks for sharing💯

  9. I think that MSP IT Service is better in terms that you have professionals work on it for you but you do not have to pay them on a monthly salary and benefits. I think it is a good choice for small business owners also.

  10. Why not I believe outsourcing to Managed Service Provider will do a business a world of good. One will be expressly leaving the business in the hands of professionals which I believe will uplift any business.

  11. This question has an easy answer..its a no brainer..your in house tech guy can’t be vast in everything..outsourcing your technical department to a Reliable computer company that has different professionals that are vast in different areas is the wise thing to do..

  12. Well from my personal experience outsourcing IT Services to those that have knowledge of it,is always better.And an outsider will want to impress clients than in-house workers.

  13. The questions on what and what should you Spend on IT is the most concern when it gets to most small businesses. But thanks to Los Angeles Computer Company for this detailed briefing.

  14. Los Angeles IT Consulting can go a long way in ensuring that a business makes the right decision on whether to go the outsourcing way or do things in-house. Every business is unique in its own way and what works for one may not necessarily work for another.

  15. Outsourcing IT Service & Support has many advantages over having an in-house solution. The most obvious one is the cost savings.

  16. Los Angeles IT Outsourcing is a very good way to ensure efficiency while at the same time saving a lot of money. Outsourcing just gives a business some peace of mind.

  17. IT services in the LA area are quickly being outsourced by the day. Many companies are waking up to the fact that outsourcing is much better even in the long run.

  18. A good Los Angeles Managed Service Provider can really help a business realize its full potential. This is because the organization can leave the IT work to the MSP and focus on the more important aspects of its business.

  19. With IT Services on the rise today companies are facing this question. As for me. I am open to outsourcing but it has to have a valid reason or must be the last course of action. I am not against it but propagation of a homegrown talent comes first and should be a priority for me.

  20. The best bet, in this case, is using a Reliable computer company to find out using their managed services and find out the budget to be certain the budget can be handled conveniently by your business.

  21. A good IT Service & Support structure should be able to soundly advice its company on the best route to take when it comes to outsourcing some IT services. Of course there are merits and demerits to such a decision.

  22. Before settling on any decision it’s always advisable to do some thorough Los Angeles IT Consulting. A lot of information can be obtained this way to help make an informed decision.

  23. Los Angeles IT Outsourcing can help an organization save a lot of money. In my view outsourcing is much more effective than having an in-House IT especially for small businesses.

  24. IT services in the LA area encompass a very wide array of services. Small companies should take advantage of this and outsource some of their IT work.

  25. IT Outsourcing in Los Angeles can help to save a lot of costs. An in-house solution a lot of times may be very expensive and not as effective.

  26. I agree IT Outsourcing is a good choice but I think you should jump on it these first chance you get. If you are a small entity then you must think long haul as suppose to a huge one where hiring more people comes very easy.

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