By calculating the avoidable in-house costs (include equipment, salaries, software and more), by determining the total outsourcing cost and by measuring the difference, you can determine opportunity cost.
Calculating IT outsourcing costs
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. SLA can include the latter under a major contract, and therefore makes calculating costs difficult. At Nmore Group, a typical support subscription is €850, this includes 10 hours of monthly support (at €85 per hour) 5 hours remote 5 hours on-site, every additional hour is €60 to €70 depending on whether it is remote or on-site, this is what is determined in the SLA. This model provides clients with flexibility – at a fraction of the cost of hiring such a full-time over-qualified employee, you get to hire a team of experienced specialists with a broad range of knowledge. This is to say that the pros and cons of quality, efficiency and health need to be accounted for. A good method of projecting costs is . i.e you need 20 hours of support per month from Nmore, this means that with a 5% discount that you manage to get you will pay €1,480 for a team of specialists who would easily manage teams up to (25) users, so long hours are accounted for. To hire such a multi-disciplined experienced individual would cost double that.