Are you aware of the Hidden Costs and pitfalls of in-house IT?

5 Hidden Costs of Full-Time IT

While there are several compelling reasons to not keep the overhead of Full-time IT staff, companies are not always aware of the biggest reasons their Full-Time IT is hurting their bottom line and performance. Here are a list of the top reasons you may want to fire your Full-Time IT person:

  • Inefficient Hiring Practices: - When companies hire IT staff, they often hire to the highest level of expertise. When hiring a candidate, they search for the hardest-to-find skills that they need to work on the network systems. For example, a company may say: "we have Microsoft Exchange, SQL databases, Cisco routers, Linux and Unix web servers, etc." "Therefore we need an individual with all of these skills". And then they proceed to hire the individual at a pay rate that really does not justify the job. Over the years, this IT individual will likely spend 80% of their time setting up computers and performing desktop support tasks that a much less-skilled technician could perform. The other 20% of upgrades, new technology implementations, and advanced troubleshooting (where necessary) could have been performed by IT consultants at a great savings to the company.

  • Liability: - Surprisingly, several businesses rely exclusively on the expertise of a single computer support person. With today’s complex computer systems it is unreasonable for a business owner to expect their computer support person to know everything. Most business owners cannot afford to send their support person to continuing education and it is unlikely they have the systems and expertise needed to manage technical resources. Also, what happens when the IT support is out sick or leaves the company? It is never a good idea to have all of your eggs in one basket. When you hire Locke Systems to be your IT Dept, you get your entire network setup and systems documented and supported by a help-desk service, on site technicians, and a full team of Network Engineers and consultants.

  • Outdated Expertise - Business owners rarely realize that the computer technologies they implement are largely limited by the expertise of their IT staff if they don't utilize outside vendors or help. Full-time IT staff have very little incentive to obtain training on their own time, so unless the company has paid to keep skills up-to-date (very costly), chances are that their networks and technology are already behind the times. In many instances the only thing holding these companies back are actually the in-house IT staff who do not feel confident or comfortable in newer technologies that would otherwise propel the company forward. Who wants to work themselves out of a job or implement their replacement? Several times we have found networks that are setup in the most inefficient ways or utilizing old defunct technologies to administer and run the network. The reason: "that's what the IT guy liked and he knew it well." Unfortunately, many IT technologies are chosen for selfish reasons. By contrast, outsourced IT firms can offer greater depth in their expertise and make a living by keeping their skills up to date for their customers.

  • Lower HR Costs - Probably the most obvious cost of having Full-Time IT staff is the overhead of salaries, paid time-off, health insurance, benefits, training, lunches and breaks, L&I, unemployment, federal tax matching, etc. Some less-obvious HR costs may include office space, tools such as laptops and cell phones, and employees wasting their time in general doing non-work related activities (a recent survey indicates that employees waste 20% of their time on the job. IT staff often sit and wait for things to break and sometimes waste even more.)

  • Pricing and Acquisitions - When it comes to researching, pricing, and purchasing IT equipment, many companies end up paying through the nose in several ways. Valuable time is spent researching and reviewing bids and when it comes to pricing, companies are often at the mercy of a single vendor. Locke Systems has the ability to offer customers lower pricing through vendors such as Dell, Symantec, HP, Microsoft, Cisco, and many others. This is because we have several customers who purchase through our reseller channels and the combined volume of our "technology co-op" motivates vendors to offer lower pricing and incentives. Also, it may not make sense for a single company to stock items for emergencies such as servers, computers, hard drives, etc. But in the interest of many customers, Locke Systems always keeps an inventory of these items for your new IT team to deploy if necessary.