It may seem strange to say up front, but we think that having a singular objective of reducing costs when engaging a managed service provider is a mistake.

An internal full-time IT support resource will cost in the region of £30k per year in salary, which after adding standard costs (NI, training, office costs, travel, computer, pension etc) gets towards a total cost of nearly £4k/month.

On average that IT person will look after between 50 and 80 end-users, which equates to roughly £60 per end-user, per month. Let’s say a highly efficient resource could cost nearer £50 per end-user, per month.

A managed service provider could cost you £40 per end-user, per month – which is a direct cost saving of 20%.

But that’s not the total picture.

For example: Your IT person is operating to his/her full capacity and will be in the office 230 days of the year, 7.5 hours per day. In comparison, a managed service provider is available 260 days of the year for 10 hours a day. That’s a 50% increase in hours covered and that’s a lot more satisfied internal users!

If that’s not enough, don’t forget the additional value you get from a managed service:

  • Delivery of a high level, consistent support level agreement (SLA)
  • Supports all the services you need
  • Able to flex as you grow
  • Can support your future state not just your current state
  • Frees up your team to focus on digital transformation and real business value

So, if you are considering a managed services contract, start with a budgetary figure of £40 per end-user per month in your head as a guide.

But we think you’ll agree that the real benefits are much more than a direct cost saving on your current state. That’s why a conversation at an early stage to go into the details is always helpful.

Save money. Improve your service. Focus your resource on delivering business value.


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