IT Outsourcing – how much does it cost, and what is it all about?
Costs of setting up an in-house IT department
A fully-fledged in-house IT department entails many costs, some of which are not readily apparent at first.
Employer Costs
Here are some things to take into account:
- Recruitment work carried out by HR departments.
- Upkeep costs following recruitment of the IT department.
- Social security contributions and taxes.
- Hardware and software equipment for the IT department.
- Office maintenance.
- Employer branding.
- Introduction costs for newly hired employees.
Putting together a close-knit and productive team is not simple; according to Solwit data, it takes two to four months on average to fill a position in the IT industry.
It is much more challenging to maintain a team of skilled IT professionals, though. Besides a large budget, this calls for ambitious challenges that motivate team members and allow them to grow and remain in the organization.
The average annual cost of maintaining an in-house IT department of 2-3 people is between PLN 300,000 and 700,000.
A major risk to consider when organizing an IT department is team turnover. This slows down project work and makes it more difficult to meet business objectives. If your team loses key members, you may be unable to meet deadlines, or your work quality could deteriorate.
More on the challenges when forming an engineering team can be read in the article: How much work at work, or why IT outsourcing pays off when team productivity is low.
Is outsourcing right for you?
Still trying to decide whether outsourcing IT services and experts are right for you? Here are some basic questions you should ask yourself:
How much will it cost to set up and maintain a motivated IT team annually?
- How will costs increase when you factor in 20-25% team turnover?
- Would you be able to manage and require a team of skilled engineers to achieve targets?
- If the product launch is delayed, will you lose business?
- What is the cost of having your team for the project’s duration compared to outsourcing?
Choosing to outsource your IT means transferring all risks associated with project failures to an outside company. You reduce business risk by using appropriate guarantees in contracts and contractual penalties for non-compliance.
IT Outsourcing pays off!
IT outsourcing is not only cost-effective but also mitigates the risk of unforeseen circumstances that may result in a project not being completed on time.
Are you ready to pass it along to specialists? If you are considering outsourcing, get in touch with us and set up a free consultation. We will put together a business case for you based on factual data. You will also receive a free total cost of ownership (TCO) quote for your project.
