Download the 2024 Managed IT Services Pricing Guide
From one-off project work to recurring jobs, understand 2024 pricing trends for managed services and on-site support
For many companies, managed service providers (MSPs) boost or replace the need for an in-house IT department. MSPs may be attractive for organizations with a network of remote sites, but there are other options. Staff augmentation or working with a specialty technology partner are alternatives that may provide greater bang for the buck. We’ll walk you through IT services pricing models so you can match your company’s needs with the best fit for your organization.
What are Managed IT Services?
MSPs are external experts that take the place of some or all of an organization’s IT needs. Depending on an organization’s needs, an MSP may provide comprehensive care. But, for larger organizations, MSPs may have a more supportive role for complex issues or routine tasks. Additionally, MSPs are often remote, working from an organization’s headquarters rather than on-site at satellite offices and work locations.
Techmate, in the very strictest sense, is an MSP. However, Techmate operates in a supportive role, offering staff augmentation and other services to internal teams as well as MSPs. This operating model allows Techmate to provide on-site, highly specialized services at as-needed pricing, regardless of the work location.
Evaluating Your 2024 IT Needs
Understanding where your IT department or current MSP is struggling can help you make the best choice. Answer these questions before hiring a new IT services provider:
- Can you afford to neglect these issues? Small, routine tasks that get deprioritized today can escalate into IT problems tomorrow. Does your company struggle with common IT issues, or are there bigger challenges?
- Is it in the budget? Whether you look into an MSP or custom-tailored staff augmentation, know what’s within your budget. Have two numbers in mind: What you can comfortably afford and what you will pay if you have to.
- What type of service model works best? An MSP might be a good fit if a breadth of services is most important whereas an in-house team with staff augmentation pairs industry expertise with targeted help where you need it.
Some MSPs build in the cost of certain services and software. If your company already pays for those services, as part of the IT department or with another provider, you’re wasting money on services you don’t need.
Managed IT Services Pricing at a Glance
Now that you understand your IT needs, what’s in the budget, and the best service model for both, it’s time to look at the costs associated with managed service providers.
The one-size-fits-all approach of an MSP may solve some or most of the IT issues and problems within an organization, but it isn’t a custom, tailored approach. That’s what differentiates staff augmentation services from MSPs: highly specialized IT services when and where you need them. Techmate takes a simple yet flexible approach with an IT services pricing model of dedicated hours each month to cover the services you need and the ability to scale up (or down).
MSP Pricing
| Service Type | Benefit | MSP Prices |
|---|---|---|
| Comprehensive Managed Services | 24/7 coverage, predictable pricing, comprehensive coverage, and experts on hand | $125-$175/user, monthly on avg. |
| Per Device | 24/7 coverage with a predictable pricing structure and control over coverage | $35-$250/device, monthly on avg. |
| Break/Fix | Pay as you go, only use as-needed | A single price, or an hourly rate |
Techmate Pricing
| Plan | Monthly Price | Annual Price |
|---|---|---|
| 10 hours/month | $135/hr | $110/hr |
| 20 hours/month | $125/hr | $100/hr |
| 30 hours/month | $110/hr | $90/hr |
When evaluating any pricing model, be sure to ask:
- Whether there is an on-site fee for deploying a technician to the site.
- What the IT service provider does to learn about an organization’s unique needs.
- When an IT provider promotes all-inclusive service, request a breakdown of what that entails.
Factors Affecting IT Support Pricing
Numerous factors can impact how much IT support costs. Certain factors are determined by the provider independent of their client, such as the IT support model, industry, turnaround time, and experience. Other factors, like the ones listed below, are more situational and will vary.
- Complexity of a project. Complex projects that involve more expertise, time, and equipment can cost more overall.
- Type of support. On-site, help desk, and remote support can all have different price points depending on the project, support model, and the infrastructure of your organization.
- Licensing. Licensing fees for certain software is often determined by the number of users. Some applications will only be needed by some users, which will help mitigate the cost.
- Size of the organization. The number of users, sites, and devices all contribute to the size of an organization when considering IT support. Fewer devices, users, and sites are easier to manage and thus less expensive.
- Infrastructure. IT support for the infrastructure of an organization is dependent on the services needed, age, complexity, and server (on-site vs cloud), all of which factor into the price.
Offerings Provided by IT Services
Whether you augment your current staff or leverage an MSP, understanding what services are available to you is vital to a successful partnership with your IT services provider.
On-Site Support
For larger organizations with complex needs, on-site support is vital to keep remote sites operational. While remote help desks play an important role, on-site support provides a “boots on the ground” approach, which helps to minimize downtime and resolve network connectivity problems, not to mention the numerous other issues that can impact functions at different sites.
Many MSPs avoid on-site support because building a network of nationwide field technicians can be costly and time-consuming. They would rather focus on virtual or related networks and cloud support from their home office.
For companies like Techmate, on-site deskside and network support is a core competency. With more than 7,000 specialists centered in business hubs throughout North America, Europe, and England, Techmate can provide the tailored, specialized support on-site that organizations need.
Case study: MSP vs. Techmate
Your time, resources, and staff are valuable. Here’s an example of where a service like Techmate may provide more value than a managed service provider.
A law firm based in New York City has satellite offices in Los Angeles, Houston, and Atlanta. While the main office based in New York City has dedicated IT staff, smaller satellite offices do not, necessitating supplemental IT support. Some of these satellite offices could have anywhere from a few to 100 or more people who will inevitably need on-site help but won’t receive it when they need it most. They might have to settle for annual or periodic visits whenever their IT department can travel to their location.
Here’s what happens:
| Scenario 1: IT Service from an MSP | Scenario 2: Staff Augmentation |
|---|---|
| Administrative assistants, paralegals, or other staff spend an hour+ of troubleshooting with an IT professional over the phone. | An experienced IT technician is deployed to the location. Office staff continue to perform tasks that support the law firm up to and throughout the service visit. |
Data Backup and Disaster Recovery
Natural disasters, or needed upgrades, can cause significant downtime and data loss when organizations don’t plan. These “what if” situations are often deprioritized by overtaxed IT departments in favor of performing other essential tasks that keep the business going rather than minimizing damage proactively. It’s essential to make sure your IT services can perform these routine tasks in the background, in addition to their other contributions to the real-time operations of an organization.
When considering the benefits and drawbacks of securing your data or exploring cloud-managed services pricing models, consider that these services aren’t infallible.
Server Virtualization
Server virtualization is when a physical server is divided into multiple servers, each unique and isolated. When an unexpected outage occurs, server virtualization allows these isolated servers to kick in, reducing or eliminating downtime and data recovery. Make sure it’s a service offered by any MSP you’re considering, or you’ll need to invest time and money into your own plan.
Software and Hardware
For many MSPs, software and hardware offerings are an additional cost or come as part of their service, regardless of need. Many established IT departments already utilize these services, so when they’re baked into IT services pricing models, organizations spend money on a service they don’t need and won’t utilize.
Why Specialty IT Partnerships are Essential for Larger Organizations
For smaller businesses, managed IT services may be a good fit. For midsize to enterprise organizations with multiple sites across a region, continent, or the world, supplemental IT partners are necessary for the challenges IT teams face today. Here are some of the top IT problems that supplemental support services, like Techmate, can address for IT teams.
- Compliance. Utilizing technicians in your location ensures that they are aware of and adhere to the regulations in their area.
- Support at all hours. While remote help desks are often 24/7, on-site support should provide the same level of support in the event of emergencies and other unexpected events.
- Cost-effective options. Compare the costs of an MSP with those of a supplemental partner, including any hidden fees like surge or after-hours pricing, mileage, or software charges you don’t need.
Frequently Asked Questions
How much should IT management cost?
Generally speaking, managed IT services can cost from around $100/month, to $350/user/month, depending on an organization’s needs, the MSP’s pricing model, and expertise.
What is a managed service fee?
Managed service fees are payment processing fees that cover the cost of processing a payment. This allows MSPs to keep 100% of the payment rather than losing a portion.
How do you charge for IT support services?
There are numerous pricing models for IT services, but one popular choice is to charge per device or per user. The price will often vary according to the pricing model — remote monitoring and cyber security can be as little as $50/month for a workstation, while per user may be $100/month or more.
How much do IT companies charge per hour?
This is largely based on the IT company, service agreement, services offered, and the size of an organization. Smaller companies that specialize in start-ups and smaller firms may charge an hourly rate between $75-$175/hour. Larger consultants who can work with governments and multiple industries provide a high level of expertise and can help with complex projects. In this case, the fee may be as much as $850/hour.
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