It’s the End of the Year: How Much Should You Budget for IT Support Costs in 2023?


Owning and managing software is more expensive than companies realize. Companies will generally spend around 75% of their allocated IT budget to maintain and run their systems and IT infrastructure. But that’s not even including other crucial IT support costs.

When it comes to IT support, there are a few different options you can choose from. You could hire an IT professional at an hourly rate or you could partner with a Managed Service Provider (MSP). Now that the calendar year is coming to an end, it’s time to start planning your IT budget to maximize your IT support costs and ensure you get the services you need.

1. Hourly vs Break-Fix Rates

There are a few options available when it comes to IT support costs, including an hourly rate or a break-fix rate. Doing a price breakdown of both can help you determine which one is the most cost-effective and reliable IT solution for your company.

Hourly Rate

If you plan to hire IT support at an hourly rate, it’s important to understand the cost associated with each project or task. Some tasks that appear easy may actually end up taking more time to complete than you originally budgeted. This can result in a higher IT support cost than expected and leave you with less in your budget to get IT to support in the future you may need.

Break-Fix Rate

A break-fix rate is a flat fee IT service provider that charges one, fixed price for IT services regardless of how long it takes to complete the task. This is a great option if you want to ensure your IT budget stays within the allocated amount. However, the break-fix model can be risky for your business because it adopts a reactive approach instead of a proactive approach.

When technology problems occur, IT services providers under the break-fix model will wait until the issue has occurred before taking action. This can be problematic because IT issues are often expensive to repair and can cost more in the long run than if you had a proactive IT support solution in place.

2. Managed Service Providers

Another IT support cost option is partnering with a managed service provider. An MSP provides managed IT support that adopts a proactive approach, unlike the break-fix model. MSPs offer comprehensive IT services, such as monitoring systems, IT support for end users, security management, cloud services, and much more.

In a recent study, researchers found that companies that partnered with an MSP had their company’s maintenance costs reduced by 40%. As was previously mentioned, companies spend the bulk of their IT budget on system maintenance, and an MSP can help reduce these costs through their service.

Additionally, partnering with an MSP also helps your organization secure cybersecurity insurance, which is becoming more difficult to secure in the increased cyber threat landscape. MSPs can save your business money on IT support costs in the long run by:

  • Customizing a fixed monthly subscription IT support plan
  • Avoiding the need to hire IT, staff, at an hourly rate
  • Providing access to more IT services than those available through a break-fix agreement

Start Saving Next Year in IT Support Costs with Simple Systems

As technology evolves IT needs to adapt, and support costs will continue to rise. But with Simple Systems, you can rest assured that your IT budget is being used wisely and efficiently—all without sacrificing quality IT services. We are a managed service provider and offer affordable IT support services that are custom-tailored to your IT needs.

Contact a team member today to learn more about our IT support solutions and how we can help you save money on IT support costs in 2023!