On average, managed IT services cost within a price range of $99 to $200 per user per month. However, this amount can greatly vary depending on the managed IT service pricing model you’re using. For that reason, it’s more important to look at how managed IT services are priced instead of simply how much they cost.
| “The key to finding cost-effective IT services is considering how much you’ll save in the long term. The upfront price may or may not truly reflect that.” – Bradd Konert, President of Gamma Tech Services |
Expecting to pay a different amount based on various factors may sound complicated, but it’s fairly straightforward to navigate once you understand the different pricing models.
It’s also worth noting that no matter your structure, working with a managed service provider (MSP) will always be more cost-effective than expanding your in-house team. CloudSecureTech demonstrates that outsourcing IT support could be anywhere from 33%-73% less per year.
If you’re unfamiliar with managed IT pricing models, this article is your introduction. We’ll go over some of the most common structures and show you how you can strategically choose an MSP that offers a high ROI.
How Do MSPs Charge Clients For Their Services?
Most MSPs charge their clients through a fixed monthly fee. The cost is usually a flat fee, however, the amount will vary depending on the MSP’s price tag and model. This recurring fee is based on the level and complexity of support you need. Some MSPs may also charge an hourly rate for additional services on top of their primary contract.
Start Your MSP Journey With a Flexible 1-Year Contract
Choose Gamma TechThe 4 Most Common Managed IT Cost Structures
1. Per-Device Pricing
This pricing model charges a fixed monthly fee per device. As new devices are added or removed, the costs adjust accordingly. This makes it a scalable solution for companies with varying device counts. It also offers clear visibility over device-related IT expenses.
2. Per-User Pricing
Per-user pricing assigns a flat monthly rate per employee. This model provides predictable expenses that match changes in your workforce. It also may be a more cost-effective option for businesses that give their employees multiple devices to work on.
3. Tiered Pricing
Tiered pricing allows businesses to choose from several support levels. Each tier includes a range of services, with higher tiers offering more extensive support and features. This structure enables businesses to select the support level that fits their current needs.
4. À la Carte Pricing
À la carte pricing lets businesses pay a monthly fee for only the specific services they need. This flexible approach allows organizations to tailor their IT spending by selecting individual services instead of selecting a bundled package.
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Managed IT Services ROI Calculator
To help you have a rough idea of how much you could save, feel free to use our online managed IT services calculator.
Managed IT Services ROI Calculator
Note: The calculator above uses hypothetical values to prepare a demonstrative estimate. The calculator does not reflect Gamma Tech Services’ pricing. For an accurate estimate of how much your managed IT services will cost, get in touch with our team.
Here are the amounts that you need to use this calculator.
- Current Annual IT Costs: Enter the amount you currently spend on IT services each year. This includes costs like hardware, software, support, and any other related expenses. For example, if your company spends $50,000 on IT each year, type “50000” in this field.
- Projected Managed IT Service Costs: Estimate the amount you would spend annually if you switched to managed IT services. This would likely be lower than your current costs. For example, if you expect the managed IT service to cost $30,000 per year, type “30000” here.
- Expected Productivity Improvement (%): Think about how much you believe productivity will increase with managed IT services. This is a percentage, so if you think productivity will improve by 15%, enter “15” in this field.
How to Pinpoint MSPs That Offer a Good ROI
Evaluate Cost Efficiency Over Time
Assess how well the MSP reduces long-term costs by cutting inefficiencies, improving resource use, and preventing downtime. By analyzing how they address recurring issues and optimize operations, you can measure the MSP’s impact on cost savings.
Look for Flexible Contract Options
Look for MSPs that offer adaptable contracts, so you can scale services up or down as your needs change. Flexible contracts provide a better fit for evolving requirements and help you avoid additional fees for unnecessary services.
Here are some key signs to look for that indicate a potential MSP partner is flexible.
| Customizable Service Plans | Allows adjustment of service levels and solutions to align with specific needs. |
| Scalable Support Options | Offers scalable options to increase or decrease support as demands shift. |
| Adjustable Contract Terms | Provides terms that can be modified, such as contract length or frequency of service review. |
| Transparent Pricing Structure | Uses clear, adaptable pricing that adjusts based on service usage. |
| Proactive Service Reviews | Regularly reviews services to recommend adjustments based on evolving business needs. |
| Dedicated Account Management | Provides a dedicated point of contact who can adapt services in response to specific requests or changes. |
Review Response & Resolution Times
98% of organizations estimate that an hour of downtime costs over $100,000. That’s why it’s important to evaluate how quickly the MSP responds and resolves issues. The sooner an issue can be detected and resolved the lower your downtime costs.
Examine Employee Productivity Gains
Determine if the MSP helps your team stay productive by reducing IT delays. On average, employees lose 1 week per year waiting for network access, so an MSP that minimizes these disruptions adds significant value.
Prioritize a Partner-Oriented Approach
Choose an MSP that acts as a true partner by engaging with your team to align their services with your goals. A partner-focused MSP takes the time to understand your needs and is committed to ensuring that their support adds continuous value.
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Interested in Seeing a Managed IT Services Price List?
The purpose of this article was to give you a general overview of how managed IT pricing works. If you want exact costs, the figure will vary based on the MSP you choose. Knowing these cost structures will help you predict the cost of your services and plan ahead.
If you want to see a quote from Gamma Tech Services, contact us today to tell us about your needs.