Understanding cost

By calculating the avoidable in-house costs, by determining the total outsourcing cost and by measuring the difference, you can determine the difference.

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.