Outsource or In-House?
Let’s start with a breakdown of the costs that the firm is currently incurring. The Salary for the Network Administrator is based on the average figures from salary.com. Figures where current as of May 5, 2007, click here for the salary.com findings
| Benefit | Median Amount | % of Total |
|---|---|---|
| Base Salary | $79,976 | 70% |
| Bonuses | $1,608 | 1% |
| Social Security | $6,241 | 5% |
| 401k/403b | $5,058 | 4% |
| Disability | $1,305 | 1% |
| Healthcare | $5,328 | 1% |
| Pension | $3,427 | 1% |
| Time off | $10,669 | 1% |
| Total | $113,611 | 100% |
The salary for the PC Technician is based on the average figures from salary.com. Figures where current as of May 5, 2007, click here for the salary.com findings.
| Benefit | Median Amount | % of Total |
|---|---|---|
| Base Salary | $61,114 | 69% |
| Bonuses | $1,198 | 1% |
| Social Security | $4,767 | 5% |
| 401k/403b | $3,863 | 4% |
| Disability | $997 | 1% |
| Healthcare | $5,328 | 6% |
| Pension | $2,617 | 3% |
| Time off | $8,148 | 9% |
| Total | $88,032 | 100% |
With these figures the average cost of the in house IT support personnel is $201,643.
The management committee is evaluating the idea of outsourcing their daily IT operations to a local IT consulting firm. As such, they listed the benefits and drawbacks to their existing support structure.
In-house staff benefits
- Ability to closely monitor performance. Staff is always “down the hallway”
- Predictable employee overhead, they know exactly what the yearly salary and benefit package amounts to.
- Current Staff has institutional knowledge of the firm and its needs.
Looking forward the firm has identified the drawbacks of maintaining an in house staff.
In-house staff drawbacks
- IT support staff maintains a reactive model of support rather than proactive.
- IT Support Staff not always up to date on the latest systems and programs. They are busy trying to make existing ones work.
- Absences – whether vacation or sickness, who covers for them and can still handle all the normal tasks.
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