The cost of managed IT services varies depending on several factors. These solutions are often priced per user or device to reflect the specific needs and level of support required by a business. On average, rates range from $80 to $200 per user monthly.
In this guide, we’ll cover the key factors influencing the cost of managed IT services, outline what is typically included in service packages, and explain the most common pricing models available today.
Table of Contents
Factors That Affect Managed IT Service Pricing
Several factors influence the pricing of managed IT services:
- Service time: The amount of time a managed IT service provider takes to deliver a service directly affects the price. If a service takes more time, the provider charges more. Some providers also charge a fixed rate or offer discounts based on the length of the contract.
- Number of users: The total number of users that access your system can affect costs as some service providers charge on a per-user basis. Additionally, more users can increase the likelihood of issues that require support, which leads to additional costs.
- Data used on servers: The volume of data stored on servers can increase costs as they grow. Providers often charge more for larger data needs. Additionally, different types of data require different levels of security, which can also affect pricing.
- Scope of services: The range of services that are included in your managed IT package can affect pricing. Comprehensive packages that cover more services like cybersecurity or network management will typically cost more than basic plans.
What’s Included in Managed IT Services Cost?
When evaluating managed IT services, it’s crucial to understand what you’re paying for. A standard package typically includes a range of services designed to keep your business’s technology infrastructure running smoothly.
These solutions can include the following:
- Network monitoring and maintenance: Ensures your network is continuously observed for potential issues. Early detection helps prevent outages that could disrupt business operations.
- Cybersecurity: Protects your systems from cyber threats like malware and data breaches. This typically includes cybersecurity solutions like firewalls, antivirus software, and regular security assessments.
- Data backup and recovery: Safeguards critical information by creating backups and offering data recovery plans. These services are vital for business continuity in case of a disaster.
- Cloud management: Manages cloud infrastructure, including hosting and storage. Providers help optimize cloud resources and ensure secure access to your data.
- 24/7 helpdesk support: Offers round-the-clock assistance for technical issues. This ensures problems are resolved quickly, minimizing any impact on daily operations.
- System updates and patches: Regularly updates software and installs patches to improve performance. This helps maintain system security and efficiency.
- Compliance management: Ensures your business meets industry-specific regulations. Providers track necessary changes in compliance to avoid penalties or legal issues.
5 Most Common Managed IT Service Pricing Models
Managed IT services are typically offered through various pricing models that vary based on the level of service and support provided. Each type provides distinct advantages depending on your business’s size, budget, and IT needs.
Let's take a closer look at each one below:
1. Per-User Pricing
The per-user pricing model charges based on the number of users within a company. Each user typically covers all the devices they operate, such as laptops, phones, or tablets, under a single fee. This allows for predictable costs, making budgeting straightforward, as companies know how much they will pay for IT support based on their workforce size.
For instance, a company with 50 employees might pay $100 per user. Even if one employee uses multiple devices, their entire IT support needs are covered by that single fee.
2. Per-Device Pricing
In per-device pricing, costs are determined by the number of devices requiring support, such as desktops, servers, and mobile devices. Each device is priced individually, which makes this model suitable for companies with various hardware needs. It lets organizations scale their IT services based on equipment rather than employees.
For example, consider a small business with 30 desktops, 10 laptops, and five servers. In the per-device pricing model, this business pays $50 per device. Therefore, the total monthly cost can be estimated based on the number of devices rather than the number of employees, resulting in $2,250 per month.
3. Tiered Pricing
Tiered pricing offers different levels of service based on your organization’s requirements. These tiers generally range from basic IT support to premium plans with advanced services like data encryption, compliance management, and proactive monitoring. Companies can upgrade or downgrade as their needs evolve, giving flexibility to businesses at various growth stages.
For example, a startup might choose a basic tier with just network monitoring and email support. As the company grows, it can switch to a higher tier that includes cybersecurity services and regular system updates.
4. All-Inclusive (Flat Rate) Pricing
Flat-rate pricing provides unlimited IT support for a fixed monthly fee. This model covers everything from daily troubleshooting to more complex tasks like disaster recovery. Businesses benefit from predictable costs without worrying about extra charges for additional services or unexpected issues.
An ideal example is a mid-sized company that might pay $5,000 per month for all-inclusive IT services. Whether they encounter minor issues or need a complete network overhaul, the cost stays the same, which allows for easier budgeting.
5. A La Carte Pricing
With a la carte pricing, businesses can select only the services they need without committing to a full package. This model offers flexibility for companies that have specific IT requirements but don’t need comprehensive support. Companies can add or remove solutions as needed to ensure they only pay for what’s essential.
For instance, a business might only need data backup and cloud management services. Instead of paying for an entire managed IT package, they can choose just those two services at a lower cost, which lets them manage expenses more effectively.
7 Ways Managed IT Services Can Help You Save More
Managed IT solutions provide more than just technical support — they can be a powerful tool for reducing operational expenses. By streamlining processes, improving technology use, and optimizing your IT infrastructure, these services help businesses cut costs and avoid unnecessary spending.
Below are seven specific ways managed IT services can lead to significant savings.
- Reduces IT costs
- Prevents hiring too many IT staff
- Allows efficient use of technology
- Helps save from hidden costs
- Allows for technology maintenance
- Handles automation
- Provides experienced support
1. Reduces IT Costs
MSPs help businesses cut down on overall IT expenses by offering predictable monthly rates. Instead of dealing with variable costs for troubleshooting and equipment repairs, companies pay a fixed amount for comprehensive support. This eliminates the need for unexpected expenses, such as emergency fixes or system replacements.
In the long run, a managed service provider ensures you don’t overspend on individual IT issues.
2. Prevents Hiring Too Many IT Staff
Hiring in-house IT teams can be costly, especially when multiple specialists are required. With managed IT services, there’s no need to staff an entire department to handle your network, cybersecurity, and tech issues. The MSP takes care of all these aspects, allowing you to focus on other business priorities.
By outsourcing, businesses save on salaries, benefits, and training costs, which can be substantial when maintaining a skilled IT team.
3. Allows Efficient Use of Technology
An MSP ensures that your technology is used to its full potential. They optimize software and hardware so that businesses avoid inefficiencies, such as slow systems or underutilized tools. This improved performance translates to better productivity, allowing employees to get more done in less time.
When technology runs smoothly, there’s no need for additional investments to compensate for ineffective systems.
4. Helps Save From Hidden Costs
Hidden costs, such as unexpected software updates or emergency repairs, can eat into your IT budget. Managed IT services help prevent these surprise expenses by proactively maintaining systems and addressing issues before they become costly problems.
With a flat-rate model, businesses avoid the unpredictable costs that arise from sudden breakdowns, licensing fees, or unplanned system upgrades. This transparent approach to billing ensures that budgets stay intact.
5. Allows for Technology Maintenance
Regular maintenance is crucial for preventing breakdowns that lead to downtime. Managed IT services provide ongoing system monitoring, ensuring all equipment remains in peak condition.
This proactive approach helps businesses avoid costly outages, which can impact both productivity and revenue. Keeping technology in good working order minimizes costly repairs or replacements.
6. Handles Automation
Automation is vital in reducing operational costs and managed IT services are equipped to handle it. Whether it’s automating routine tasks like backups or streamlining workflows through AI tools, MSPs can help businesses implement automation effectively. This reduces the need for manual work, which lets employees prioritize more strategic tasks.
In the long run, automation leads to significant savings in time and labor.
7. Provides Experienced Support
Hiring a managed IT service means gaining access to experienced professionals without the high cost of recruiting full-time experts. MSPs have specialized teams that bring in-depth knowledge of various technologies and systems.
Instead of paying for continual training to keep an internal team up to date, businesses can rely on the expertise of an MSP. This ensures issues are handled quickly and efficiently, which reduces downtime and operational disruption.
Other Things To Consider When Choosing an MSP
Here are other areas to consider when deciding on an MSP:
- Service reputation: Before signing a contract with any managed service provider, do some research on the company. Read reviews and ask for references from other businesses in your industry, as the quality of service can vary between providers.
- Customer service: You want a managed service provider with excellent customer service. If you ever have a problem, you should feel comfortable reaching out. A managed service provider that provides good customer service can help you fix your problems.
- Service level agreement: Have a service level agreement (SLA) in place before signing a contract with a managed service provider. An SLA is a contract that outlines the service expectations and what happens if the managed service provider doesn't meet those conditions.
- Service location: Service location also affects how quickly your managed service providers can respond to a problem. It's beneficial for your managed service provider to be in a place with minimal risk of natural disasters, like earthquakes, floods, and hurricanes.
Top IT Services Agencies To Hire
1. Xtreme Pathfinders Pvt Ltd
- Location: 52 A Block A Military Accounts Society College Road, Lahore, 54000, Pakistan
- Average Hourly Rate: $7
- Expertise: IT Services
Xtreme Pathfinders (Pvt.) Limited is a leading company that offers a comprehensive platform for business solutions. Its wide range of services in IT technology aims for excellence in every aspect. The agency’s success stems from two key strengths: an all-around qualified team and a diverse client base.
2. Startbit IT Solutions
- Location: C-6/82, Sector 6, Chitrakoot, Vaishali Nagar, Jaipur, 302021, India
- Average Hourly Rate: Inquire
- Expertise: Node.js Development, Software Development, Mobile App Development, eCommerce Development...
Startbit IT Solutions is a global IT Services provider company with expertise in outsourced product development and custom software development, focusing on web app development, mobile app development, and tailor-made solutions using the latest technologies.
The agency consistently delivers offshore outsourcing solutions and quality software products to start-ups, mid-size businesses, and large enterprises worldwide. Starbit IT Solutions has over 1,400 satisfied clients worldwide.
3. Webllisto
- Location: 801, Airen Heights, Behind Pakiza Mall, Vijay Nagar, Indore, 452001, India
- Average Hourly Rate: $50
- Expertise: Enterprise Software Development, PHP Development, VR/AR, Internet of Things...
Webllisto is a pioneering software development company that specializes in blockchain. The agency’s team of certified blockchain developers delivers a range of software solutions, from blockchain software development to Metaverse projects.
Headquartered in California, with additional offices in India, Webllisto assembles top technical talent to work on projects, catering to both startups and multimillion-dollar companies worldwide.
MSP Pricing Takeaways
The overall cost of managed IT services can vary significantly depending on the pricing model and the specific services included. Understanding how these costs are structured — whether it’s per user, per device, or through flat-rate options — is essential for businesses to budget effectively.
To explore the best options for your business, check out some of the top-managed IT service providers we’ve listed in this blog.
