Take a few seconds to think of all the responsibilities you handle every day.
If you’re like many professional service organization leaders, that list is fairly lengthy. Delegating any of the tasks that take away from your primary job function is sure to relieve some stress.
If your technology is on that list, managed IT services could be an excellent option for your business.
You can read about all of the reasons in our article, “3 Reasons Professional Service Organizations Should Use Managed IT Services.” In a nutshell, managed IT services maintain your technology, so you seldom have to think about it.
Sounds great, right? However, you still have one question.
How much is this going to cost?
When it comes to estimating the cost of your managed IT services contract, there are many price variables. The best way for you to estimate how much you’ll spend on your contract is by looking at the following categories:
- Initial retainer
- Recurring expenses
- Add-on services
You may also find our articles “5 Hidden Fees in a Managed IT Services Contract” and “How to Budget for Managed IT Services” helpful when thinking about prices and budgets. However, they apply to all the industries we serve, while this article focuses on professional service organizations.
Managed IT Services Contract Retainer
Once your MSP has reviewed your IT environment and created a contract for your organization, they’ll require you to pay a retainer before launching their services.
Typically, this is equal to one month of services. (We’ll review how monthly fees are calculated in the next section.)
If you decide you don’t want to continue with a managed IT services contract during the no-obligation, introductory phase – first 60 days – you won’t be refunded your retainer.
However, if you complete the contract, your MSP will apply the retainer to the final month of service.
Recurring Expenses for Managed IT Services
This is the meat and potatoes of your managed IT services bill; it covers the cost of each user’s subscription services, helpdesk support, and remote monitoring.
If your MSP has an all-inclusive contract where they send you a single bill for all services, your recurring expenses will also include security software, backup solutions, and leased hardware.
Of course, you’ll have a slightly higher per-user, per-month fee – generally between $200 and $250. However, you’ll be eliminating individual bills for tech services by bringing them under the umbrella of your MSP’s services.
Managed Services Contract Add-Ons
Your MSP will have carefully designed their service to meet the needs of most their clients. However, there are always exceptions.
As a professional service organization, you may require additional software or integrations. You might want to bring other technology under your contract, such as phone systems or cloud-storage. Your MSP would adjust their monthly rates to reflect the cost of those solutions.
Another common add-on professional service companies incorporate into their contracts are extra devices.
For example, perhaps your users each have their own workstations, but you also have a handful of laptops in the lobby for clients to use to register for your services.
The per-user, per-month fee only covers one workstation per user, and each additional devices would cost around $15 every month.
Are Managed IT Services Worth the Price?
At this point you should start to understand why managed IT services are a great fit for your professional service organizations.
There is a low up-front cost to access the solutions and devices needed to get started with creating an effective and efficient IT environment.
Plus, the monthly recurring fees are predictable and incorporate all the technology and support you consume from your MSP. And if you want to include other solutions outside of your MSP’s general footprint, most providers will work with you to do so.
Ultimately, managed IT services are an excellent way to delegate the responsibility of your IT environment to experts who can simplify your IT experience.
Of course, you’ll have to pay for the services, but managed services offer several benefits that can quickly reap dividends for your organization while having a straightforward billing structure that’s simple to accommodate into your budget.
If you still have questions or want more information on pricing and other components of a managed IT services contract, check out our free e-guide. It contains all the information you need to feel confident signing a managed services contract.
