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Understanding Outsourced IT Support Costs for UK Businesses

Understanding Outsourced IT Support Costs for UK Businesses


Business IT Support

Many UK businesses are weighing up the costs and benefits of an outsourced IT support company versus an in-house team. The decision can have a big impact on operational efficiency, budget and overall business performance. At Labyrinth Technology we want to help you make an informed decision for your business.

Costs Comparison: Outsourced IT Support vs In-House IT Support

IT support costs can vary greatly depending on several factors, including the size of your business and the level of service required. Small businesses might find that their IT needs are relatively straightforward, requiring less intensive support and thus incurring lower costs. On the other hand, medium to large enterprises with more complex IT infrastructures will likely need more comprehensive support, which can be significantly more expensive.

Moreover, the quality of the IT support you choose plays a crucial role in determining the overall cost. High-quality IT support is generally more expensive because it provides access to skilled professionals, advanced tools, and comprehensive services. However, opting for cheaper IT support can often lead to hidden costs and inefficiencies.

For example, budget IT support companies might not offer the same level of expertise or the latest security measures, which can leave your IT infrastructure vulnerable. During peak times or critical moments, these providers might not be able to respond promptly, leaving your business exposed to significant risks. This can result in downtime, data breaches, and other issues that ultimately cost more money and cause more headaches than if you had invested in quality support from the outset.

Additionally, cheaper providers might charge for every little service or issue, leading to unexpected bills and financial strain. In contrast, a reputable IT support company typically offers a comprehensive package with transparent pricing, ensuring you know exactly what you are paying for and can budget accordingly.

When considering IT support, cost is a crucial factor. Let’s delve into the costs of both in-house and outsourced it support.

In-House IT Support Costs

Maintaining an in-house IT team can be expensive. The costs include salaries, benefits, training, and overhead expenses such as office space and equipment. According to data from the Office for National Statistics (ONS), the average salary for an IT manager in the UK is around £45,000 to £65,000 per year. Adding benefits and other related expenses, the total annual cost per employee can easily exceed £70,000.

Additionally, there are hidden costs such as recruitment fees, ongoing training to keep the team updated with the latest technologies, and potential overtime pay during critical IT emergencies. These expenses can quickly add up, making in-house IT support a significant financial commitment.

Outsourced IT Support Costs

Outsourcing IT support can often be more cost-effective. Managed IT services typically offer a fixed monthly fee, covering a range of services including network management, cyber security, helpdesk support, and more. This model allows businesses to predict their IT expenses more accurately and avoid unexpected costs.

The Deloitte Global Outsourcing Survey 2022 shows the big cost savings of outsourcing. The research found that companies can save up to 30% by outsourcing various functions including IT. These savings come from lower labour costs, increased efficiency and access to specialist skills and technology. Plus outsourcing saves companies the high costs of recruiting, training and maintaining an in-house team. By utilising the expertise of outsourcing providers companies can improve their cost base and overall operational performance.

Cost Benefits of Outsourced IT Support

Managing IT in-house can be expensive especially for small to medium sized businesses. As mentioned earlier, according to Deloitte, outsourcing IT can save up to 30%. Let’s get into how exactly outsourcing IT support can save businesses big time.

Lower Personnel Costs

One of the biggest savings is from staff costs. Hiring full time IT staff means not only paying competitive salaries but also benefits like healthcare, pensions, and paid leave.

In contrast, outsourced IT services charge a fixed monthly fee which is often lower than the cost of one full time employee. This fee covers a wide range of services including helpdesk support, network management, cyber security and more. By outsourcing, you get access to a team of IT professionals for a fraction of the cost of maintaining an in-house team.

Economies of Scale

Outsourced IT providers can offer services at a lower cost due to economies of scale. They support multiple clients so they can spread the cost of advanced tools and technologies across a larger customer base. This shared cost model means you get the latest IT solutions without the hefty price tag of buying and maintaining those tools in-house.

Predictable Budgeting

Outsourcing IT support gives you predictable monthly expenses. The fixed cost model helps with budgeting and financial planning as there are no surprise costs for overtime, training or emergency repairs. Managed IT service providers offer different packages to suit different business needs so you only pay for what you need. At least if you’re not looking for a very cheap it support provider who might hide some costs and not so effective.

But be careful of very cheap IT support providers with hidden costs as they can lead to surprise expenses and poor service quality. By choosing a reputable provider you can get transparent pricing and reliable support so you can have peace of mind and protect your business from IT surprises.

Reduced Training and Recruitment Costs

Hiring and retaining skilled IT staff is expensive and time consuming. The recruitment process involves advertising the position, screening candidates and interviewing, all of which takes time and resources. Once hired, ongoing training is required to keep staff up to date with the latest technologies and cyber security threats. Outsourced IT providers take on this burden so their staff are continually trained and certified so you don’t have to.

Access to Expertise

Outsourced IT providers have expertise and experience that is often beyond the capabilities of a single in-house team. They have specialists in areas such as network security, cloud and data management. This expertise is critical in solving complex IT problems and implementing advanced solutions that make your business more efficient and secure.

Cyber Security

Cyber security is a big issue for all businesses. Outsourced IT providers have advanced security measures to protect against cyber threats. These include regular security audits, 24/7 monitoring and best practice data protection. By outsourcing you get more security without having to invest in expensive security infrastructure and people.

Flexibility and Scalability

Outsourced IT services are flexible, so you can adjust the level of support as your business changes. Whether you’re expanding, launching new products or facing seasonal fluctuations, outsourced providers can scale up or down to meet your needs. You only pay for what you need at any given time, saving you cost and hassle.


Consider a mid-sized UK company that employs an in-house IT team to manage its network and support its employees. The company spends approximately £200,000 annually on salaries, benefits, and training for a team of three IT professionals. Additionally, they incur costs for software licenses, security tools, and emergency repairs.

By switching to an outsourced IT support provider, the company could opt for a managed service plan costing £5,000 per month. This plan includes comprehensive IT support, network management, cybersecurity, and regular system updates. The total annual cost of £60,000 represents a significant saving compared to the in-house model. Moreover, the company gains access to a broader range of expertise and advanced technologies, enhancing their overall IT capabilities.

Make the Right Choice for Your Business

Deciding between in-house and outsourced IT support depends on various factors, including your business size, budget, and specific IT needs. For many UK businesses, outsourced IT support costs can often be lower than maintaining an in-house team due to the predictable monthly fees and the elimination of expenses related to salaries, benefits, and ongoing training.

At Labyrinth Technology, our outsourced IT support services are designed to be flexible, scalable, and tailored to meet your unique requirements. We provide comprehensive IT solutions that enhance your operational efficiency and protect your digital assets.

Discover the cost-saving benefits of outsourcing your IT support with Labyrinth Technology. Our tailored IT solutions offer comprehensive services at a predictable monthly fee, helping you manage your budget effectively. Avoid hidden costs and unreliable providers by choosing our expert team.

Contact us today to learn more about how our outsourced IT support can benefit your business. Together, we can create a robust, secure, and cost-effective IT environment that supports your growth and success. For a free consultation, contact us today.

Szilvia Gagyi
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Empowering London Businesses with Efficient IT Solutions to Save Time and Stay Ahead of the Competition.

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