Calculating costs of IT services
As mentioned in the ‘determine the price of solutions’ FAQ, every MSP works differently, but the rule of thumb is, there are project-based, subscription-based and open-ended (SLA) agreements, and each is a separate engagement. At Nmore Group, a typical WordPress AMP website development agreement is €4,000 for 5 web pages, this includes the work of a Project Manager, UIUX analyst, Graphic Designer, Content Manager, SEO Specialist, Front-End and Back-End Developers, this makes calculating the cost of the project difficult. A great way to calculate preliminary expenses is to understand the project cost, the average cost per hour, the number of people engaged and the hours spent developing. i.e €4,000 divided by an average of €80 is equal to 50 hours divided by 7 people makes it an average of 7.14 hours spent per person, now you can calculate how much an in-house team would cost to produce the same quality. In brief 7 people at an average salary of €1,750 (billed for 2 working weeks at roughly €840 per person) would bring the total of the project (not accounting for domain, hosting and infrastructure) to €5,880. This means that you are potentially saving more than €1,880.