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Cost of IT Services for Small Businesses

By Janselle M.

Updated on June 4, 2024

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The Cost of IT Services for Small Business

Technology is a must for every business to operate and expand. On-site and cloud-based services are both provided by managed IT service providers. They give their client companies access to cutting-edge technology. By ensuring the safety of the hardware and software, they relieve them of the burden of maintaining technological infrastructure.

Lack of funding for IT is one of the significant issues that many small businesses have. Of course, SME spending is always subject to a cost-benefit analysis. This is because they always prioritize expenses with the highest returns.

How much would outsourcing Information Technology (IT) services for small businesses cost? Are there other charges than the ones you see online?

Outsourced IT Services for Small Businesses – Meaning

Outsourced IT is sometimes called a Managed Service Provider (MSP), IT Consultant, or IT Services Provider. It’s the efficient delivery of application services, solutions, and business processes.

You can choose from a wide range of service packages from a provider, ranging from an ad hoc hourly support team to monthly recurring service contracts. This includes everything from help desk services to network monitoring and administration.

Outsourced IT services for small businesses are rampant nowadays. That is why selecting an IT service provider you believe can be a great partner to your company is crucial! 

Furthermore, below is the difference between an Outsourced IT and an In-House:





  • Accomplishes projects quickly and more efficiently. Flexibility is another advantage
  • Strategy meetings & continuous planning
  • 24/7 availability (support & help desk)
  • Can handle your hardware & pay unforeseen costs
  • It is much cheaper than hiring in-house IT staff
  • Lacks specialized and necessary skills
  • Staff are drained and burned out with only basic support
  • Utilizes a small team to handle daily issues & problems
  • You are responsible for the payment of damaged hardware 
  • It is more costly compared to outsourcing IT tasks to an IT provider


Why Outsource Your IT Support?

Many outsource their IT services to small businesses to save time, money, and resources. 

However, deciding whether to entrust IT services for small businesses to a third party can be difficult. But it is a smart one! Why? Here are factors on why you should make a switch.

Increase Your Employees’ Efficiency and Productivity

A great IT service provider nowadays is proactive. They’ll work hard to avoid problems whenever possible and will advise you on ways to increase your productivity.

Bringing a reputable IT provider on board is one way to get two things done simultaneously. With such assistance, you may easily concentrate on enhancing your data networks and system design.

Concentrate on Your Core Tasks

Outsourced IT assistance will provide you with complete peace of mind. It eliminates the burden associated with handling your technological requirements. Also, it enables you to concentrate on managing your company since you have a tech support team to manage all your resources.

Small Business Owners Can Compete with the Big Ones 

Small businesses appear to be facing unfair odds. Maintaining every part of your IT system design costs a lot of time and money. Long-term design and development efforts are required for every new roll-out. 

Your business may concentrate on using every advantage as they compete in the major leagues by outsourcing such issues.

Reduced Costs

Recruiting and keeping a large in-house IT staff is difficult and expensive. It costs money to hire database architects and systems integration experts. 

However, skipping out on these services could cause problems. Fortunately, you can quickly get IT support from BPO firms.

Contracting your partner IT services specializing in small business operations may cut costs. Most often, you will only pay for the services you use. Also, BPOs can consolidate all your expenses into a single, manageable monthly payment.

Security and Compliance

Technology has simplified business operations. Unfortunately, this also opens up an issue of company vulnerability. Cyber nuisances such as ransomware attacks, data breaches, malware, and viruses can happen anytime.

Its daily duty is to protect you from these infiltrations. In addition, you have access to knowledgeable professionals in compliance with governmental and commercial regulations.

You can be confident that your systems are regularly monitored when you work with an outsourced IT provider, enabling you to spot and address possible problems before they impact your company. This ensures that downtime is minimized.

Utilize Cutting-edge Products and Services

Professional services, project management, end-to-end managed business intelligence, communications, and cyber security are all offered to you.

24/7 Support Staff and Technical Support

With an external IT support team, you can be sure that there will always be someone to respond to your calls. A professional who can offer solutions to help your internal section

You can be sure that there’s a team monitoring your system. In addition, you have free access to a pool of experts anytime you need them. Twenty-four hours a day, seven days a week.


Cost of Outsourcing IT Services

Before we start, let’s get something clear. IT service pricing is not a one-size-fits-all affair. There is no fixed amount.

Most of the time, quality of service dictates the price for managed IT services for small businesses. Specialists with a lot of expertise will charge more, but they will also deliver higher-quality services.

Although, you don’t need the best all the time. It would be best to have someone who can deliver your desired result.

Furthermore, other factors, such as technology, location, services, and seats, affect the price. Let’s try to break it down to give you an estimate. 


The flat-rate, all-inclusive charging method is often the most popular way of estimation. The typical monthly fee for users of this system by IT firms ranges from US$ 200 to US$ 500. Moreover, rates can still be higher than US$ 500, depending on the devices and other factors. 

IT providers bill by standard hourly rates, often. Some companies charge between US$ 20 and even US$ 40 per hour. In some Western countries, the price could get even higher — US$ 50 per hour.

It is common for managed IT service providers to charge more, especially when their consumer and line-of-business applications are more integrated.

Always keep in mind that you get what you pay for.


Extra and Hidden Costs of Outsourcing Your IT Support

Sometimes, IT firms charge more for their managed IT services for small businesses.

Remember that there are a lot of factors that can affect pricing. And such factors may have extra fees. Like in some BPOs, the spending is for documentation and paperwork. 

 Is an option. The best way to counter this is to set a budget. With a leeway, you can brace for various expenses that may arise. It also pays off if you are transparent with your chosen IT provider partner.


Our Final Advice for Business Looking for IT Support

You can determine what you’re paying for by monitoring your account’s spending.

Although outsourced IT support services for small businesses require careful planning and budgeting, companies can benefit from them in several ways. You may direct your resources to duties more focused on generating money by collaborating with a managed service provider.

Your bottom line depends on how well your business can adjust to technological advances. Furthermore, IT contributes to the satisfaction of your current client, attracting more customers.

Work with reputable managed IT services for small business providers. Why? Because it will provide your business with a competitive edge! While also delivering the finest service at the lowest cost.

Magellan Solutions Offers Quality Services for Businesses Looking for IT Support

Are you still searching for “IT services for small businesses near me” on Google? You can stop looking now!

Outsourcing your IT tasks to us is an excellent move for your business’s growth. At a competitive cost, Magellan Solutions will do what it can to help you with your company’s demands and goals.

We take great pride in providing quality call center services throughout our 18 years of experience in the industry. On top of that, we are an ISO-certified and HIPAA-compliant outsourcing firm.

Give us a call, and let us help with your business goals.

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      Cost of IT Services for Small Businesses

      Janselle M.

      As a content writer at Magellan Solutions Outsourcing Inc, Janselle creates captivating stories that connect with SMEs. With a passion for storytelling and a sharp eye for detail, she focuses on crafting engaging content to boost their digital marketing. She is driven by excellence, aiming to deliver messages that make their brand stand out.

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