Small to medium-sized businesses (SMBs) like yours usually operate on tight budgets, but skimping on IT support spending will only hurt your organization, not help it. IT downtime is costly, so cutting corners on tech support often ends up being more expensive than the savings it promises.
While you can’t avoid spending on IT support if you want to succeed, you can get an idea of what you should be spending based on your circumstances. In this article, we explore the key factors influencing your IT expenses and provide an overview of the average costs of popular IT support models for small businesses.
What factors contribute to your SMB’s IT costs?
Not every business will be spending the same amount on IT support; every business is different, with unique needs and infrastructure setups. However, your IT costs will typically be determined by a general range of factors, including:
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- In-house vs. outsourced IT: Maintaining IT support staff on the payroll guarantees immediate assistance when issues arise, but the salary, benefits, and training costs are often more than an SMB can afford. Outsourced managed IT services provide a more affordable alternative, enabling smaller companies to access top talent for a fraction of the price.
- Break-fix vs. managed IT services: Will you be paying for support only when something goes wrong (break-fix), or setting aside a fixed fee for unlimited monthly support (managed IT services)? Traditional break-fix IT support models can be cheaper, but the expenses fluctuate wildly from month to month.
- Hybrid vs. remote-only support: While remote-only support is more cost-effective, certain technical issues demand hands-on expertise. If your business frequently encounters complex tech challenges, the savings from remote support may not outweigh the potential costs of unresolved problems that need on-site assistance.
- Service level agreement (SLA): The cost of services rises as your SLA expectations and requirements increase. For instance, opting for 24/7 IT support instead of standard business hours will naturally come with a higher price tag.
- Cybersecurity and compliance needs: If you handle sensitive data or work in an industry with strict cybersecurity regulations (e.g., PIPEDA, PCI DSS, etc.), you may require specialized compliance expertise, which often comes at a higher cost.
- Business size: As the number of employees and systems requiring support increases, so do your costs.
What are the average IT support costs for SMBs per service model?
Several factors, including your location and industry, can influence your IT support costs. It's important to note that the figures provided below represent average ranges. With this in mind, let’s explore the typical costs associated with the most common IT support service models.
In-house IT support
As the cost of living continues to rise, so too do expected salaries. If you are looking to hire in-house IT support personnel, expect to pay anywhere from CAD 50,000 to 65,000 per year — and that’s just the salary for a basic technician. Factor in training and the IT support tools they’ll need, and your costs go up even more.
Hourly break-fix IT support
With a break-fix model, you can expect to pay between CAD 100 and 300 per hour. This may initially appear to be a cheaper solution, but the expenses can quickly rise under certain circumstances. Specialized support, such as configuring specific software, addressing complex technical issues, or operating in urban areas, often comes with higher costs. Additionally, recurring problems can significantly inflate your expenses over time.
Another drawback of the hourly model is the lack of incentive for technicians to perform preventative maintenance, which can lead to more complications in the future.
Managed IT services
Managed IT services are a top choice for SMBs due to their reliable service quality and predictable, cost-effective pricing. As a model operating on a fixed monthly fee based on the number of users, it offers unlimited support no matter how many IT issues arise. Pricing typically ranges from CAD 100 to 250 per user per month, making it a practical and straightforward solution for businesses.
And because these services are offered by an outsourced provider, you get the benefits of working with a full team of experienced professionals without having to pay a premium as you would if they were on the payroll.
Maximize your returns on IT support expenses with XBASE Technologies
Need cost-effective IT support that keeps you productive and profitable without breaking the bank? Contact Canada's top business technology provider: XBASE Technologies. We offer comprehensive managed IT services that let you benefit from IT support delivered by a veteran provider with over 35 years of experience. Get in touch with us now for tailored IT solutions that fit your budget.