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Reliable technology is essential for all businesses to succeed in today’s global market. From business-essential platforms to cybersecurity, hardware, software, backups, and beyond, there is a significant demand for secure tech and technology support staff for every organization.  

Recovering from the pandemic has put many organizations, especially small businesses (SMBs), in a unique position.  They have to consider the return on investment (ROI) for every technology purchase. Despite economic uncertainty though, organizations are planning to forge ahead with technological investments throughout 2023. Fluctuations in forecasting models are expected, but estimates for IT spending are at an all time high. It will be a constant balancing act between strategic investment and cost-saving measures for many organizations.  

Hiring an Internal Tech Team vs. Outsourcing Technology

While balancing increases in the cost of technology, SMBs may be faced with tough choices – scaling back on their workforce spending or cutting strategic investments in their technology. The investment in skilled labor is certainly no small thing, as described in CompTIA’s IT Industry Outlook for 2023.  

Recruitment costs add up to more than an organization might expect. Benchmarking data from the Society for Human Resource Management (SHRM) suggests “the average cost per hire was nearly $4,700” in 2022. The founder of E.L. Goldberg and Associates, and the SHRM Foundation chair-elect, further believe the estimated total cost to hire can be three to four times a position’s salary (2022 talent acquisition article from SHRM).  

When recruiting an internal IT team, especially if you are an SMB, the costs can be even higher once you consider the vast competition and the price for “lost candidates” during the recruitment process. Despite large tech company layoffs all over the news, jobs in tech have been plentiful. According to CompTIA, unemployment in the industry has only shifted from 1.5% to 2.4%, still significantly below the national unemployment rate. Skilled IT labor will continue to have several jobs to pick from.  

IT specialists will be drawn to positions at organizations that offer higher salaries, better benefit packages, more life-work balance, and growth opportunities. The American workforce is still looking for more flexible jobs and career development opportunities after the Great Resignation in 2021. Check out this thought leadership article by our Vice President of Human Resources for more information. 

Advantages of Outsourcing Technology Roles

Hiring a Managed Service Provider (MSP) could be the answer for many organizations to overcome these challenges and costs. MSPs provide ongoing partnerships and offer technical support at lower prices with more flexibility and scalability. These strategic partnerships can offer businesses a chance to invest their already tight budgets in necessary products and services or competitive new technologies rather than a small internal team of IT professionals. Partnering with an MSP also allows businesses to avoid the prohibitive costs surrounding recruitment, salaries, and additional benefits while still gaining full access to top technical talent and solutions support.   

In fact, the average salary across the United States for an IT Consultant averages between $74,000 and $95,000 a year. Consultants come with many different titles, but their “responsibility remains the same – keep the organization ahead of all things IT related,” and it is important to have IT leadership within your organization. Additionally, while consultants can keep a business competitive and help organizational leaders find and implement the latest and greatest technology, additional team members and equipment need to be acquired to successfully handle internal IT needs. 

Other key members of an internal IT team, such as a help desk engineer, system administrator, and Chief Technology Officer (CTO) could cost anywhere from $45,000 – $200,000 in base pay. MSPs like GadellNet seek out top talent in the field of Information Technology and offer competitive salaries and benefits so SMBs, for a lower cost than hiring a small internal team, can put their money towards an ideal IT strategic partnership and have access to an entire team with dedicated specialists.  

Outsourcing Technology Roles with GadellNet

While other companies faced uncertainty during and after the Great Resignation, GadellNet maintained an 86% retention rate in 2022 and continues to grow as a company with strong cultural values. We are a team of exceptional IT specialists dedicated to powering partner missions, and we offer IT support services, strategic consulting, and Cybersecurity solutions.  

It is important when evaluating and comparing Managed Service Providers for organizations to focus on what is important in the short-term and the long-term and who will help them invest strategically in technology during times of uncertainty. In fact, with the right provider, who will answer even the toughest questions, “you can focus on your daily tasks without even considering your IT” and grow as a business without worrying about the cost of adding IT staff.  

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