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How Much Is Your IT Service Costing You? Your Guide To Understanding Technology Costs.

At some point during your business growth, you are going to come to the realization that your technology is eating into your budget and destroying your productivity. To keep up with your competitors you are hemorrhaging funds, only to discover that all this new tech you have purchased isn’t really performing as it should.

Then there’s the added headache of not having anyone in your company who knows how to set up or manage your network, deal with problems that arise, or has any clue about what technology that is available that actually provides the solutions you are looking for.

The in-house IT department you hired (and put in the dark room in the back) may be solving your problems. However, their salaries and benefits packages exceed your personal budget. And then, of course, there’s the never-ending laundry list of hardware and software requests that the IT crew ‘needs’ just to keep your IT infrastructure from blowing up.

While this may be a bit more comical approach to your situation, it may also be a reasonably accurate representation of where you stand right now with information technology.

But, it doesn’t end there.

Every time your computers perform slowly, your network shuts down for no apparent reason, or you experience an emergency — not to mention a security breach — you experience downtime. Every time you experience downtime, you also lose productivity, along with money out the door. Finally, it needs to be mentioned that it takes hundreds or even thousands of dollars for you to maintain your equipment and network. That is more money down the drain.

When you add up your expenses, it is easy to see why so many businesses hold on to their old technology as long as possible.

Breaking Down Your Technology Costs

When you break down your IT costs, it is easier to see where your money may be going and if your costs are actual investments or a waste of your funds. Keep in mind, that the majority of these costs are in-house expenditures, not costs for outsourced IT services.

Hardware and Software

Hardware purchases Software purchases Lease costs Licensing
Subscriptions Maintenance Extended warranties Setup fees
Supplies Materials Spare parts

IT Operations

Labor costs Tech support Database administration Website management
Help desk services (not outsourced) Staff salaries Staff benefits Staff facilities and furniture
Outside service providers (not IT) Network costs Internet connectivity


Financing Human resources Product procurement costs IT staff management
IT staff training Training for the entire staff

End-User Operations

Lost staff productivity due to lack of knowledge or ability Troubleshooting Staff assistance when problems arise


Lost productivity Lost revenue

IT Repairs, Replacements & Disasters

Hardware upgrades Software upgrades Equipment upgrades Repairs
Security breaches Disaster recovery Outsourced repair costs One-time/short-term consultation

Now that the breakdown has given you a closer look at understanding technology costs, you may be asking yourself the next logical question?

Is there a better way of managing my IT while reducing my costs?

The answer to that question is, Absolutely!

Keep reading…

Outsourced IT Companies: The Key to Reducing IT Costs

It seems counter-intuitive to think that hiring a technology company to manage your entire IT infrastructure would cost less than doing it yourself.

There are two reasons for this thinking.

First, we now live in a DIY culture where everyone attempts to find ways of solving problems on their own without hiring professionals. In most cases, people do this to save money. However, if the DIY fad has taught us anything is that quick-fixes that save money often create more costly problems down the road. There is a reason why they call professionals experts.

Second, some services do cost a lot of money while not providing better solutions for companies desperate to save money. Some providers charge more for their services without helping companies find ways to save money and turn a partnership into a win-win.

Neither of these cases applies to outsourced IT services.

At its core, an IT company provides efficient, low-cost, and reliable technology solutions at the highest levels. In fact, how an IT company measures its success is by helping its client create and meet benchmarks for the following:

  • Product purchase savings
  • Team productivity
  • Infrastructure sustainability
  • Reduced downtime
  • Scalability for business growth and profitability
  • Digital asset protection and preservation

Every one of these areas where cost is a factor can be measured in terms of overall cost and adhering to budget standards set by the client.

Find the Right IT Company

Just because outsourced companies are a more economical solution to in-house, IT doesn’t mean that a company will actually save you money. What it comes down to is if an IT provider invests in your company enough to help you with proactive solutions for reducing your costs across the board.

Is the company more interested in saving you money or making money for their company? Does the IT company take an active role in finding solutions for improving your network efficiency, increasing your revenue, and reducing your costs in all the ways we listed above?

That is where NTConnections comes in. We find innovative ways to help you save money and take the stress of-of managing your IT in-house. We provide cost-saving solutions such as:

  • IT managed services. By managing your entire IT infrastructure, we save you money in labor costs, administrative costs, and ongoing maintenance and repair costs. We also show you how to use your network and equipment more efficiently.
  • Business continuity. Our services allow your staff to be more productive while reducing downtime, training, and in-house maintenance.
  • Security. We protect your data and equipment so that you don’t lose money on compromised digital assets.
  • Cloud services. Moving your entire operation to the cloud increase productivity, streamlines your systems and reduces your in-house equipment and server costs.
  • Communication. You can save thousands of dollars in communications by simplifying your telephone system with VoIP.
  • Help desk services. You no longer have to be high fees for one-time IT repairs, upgrades, and maintenance.

Complete IT Services

If you are looking for a reliable IT company that provides comprehensive managed services in Reston, Virginia, then contact NT Connections. We offer scalable, secure IT solutions for all types of businesses.

To schedule a consultation with one of our IT specialists, call us at (703) 288-9767. You can also message us on our contact form or chat with a live specialist online.