IT management services can save businesses money, but pricing can be opaque. 

This guide will walk you through different pricing strategies and costs you can expect so you can better read between the lines when deciding what works or doesn’t for your business.

What is IT Management?

Let’s first clarify the concept of “managed IT services” before diving into the cost discussion. Nowadays, the term is thrown around quite a bit, and various industries offer some form of “managed” products. So, what does it mean?

Essentially, managed IT services encompass a wide range of external experts taking on the responsibility for some or all of your IT operations. In simple terms, they handle and oversee specific aspects of your IT services for you.

Comprehensive managed IT services

In certain cases, it’s most practical for the managed IT team to function as the company’s dedicated IT department, addressing all the company’s IT requirements. 

This involves working closely with leadership to develop a strategic IT business plan and assisting with a variety of tasks, from installing the latest accounting software updates to overall IT management.

Co-managed IT services

Alternatively, the external IT team may focus on overseeing specific segments of the IT framework. 

Their responsibilities might be confined to assisting the client’s internal IT team with otherwise complex issues. Routine tasks like daily maintenance, including backup administration and ensuring IT security, are also within their purview.

How Much Should IT Management Cost?

Given the considerable variability in deliverables and responsibilities among managed IT services, the associated costs can vary significantly.

Generally, managed IT services packages span a price range from $99 to $350 per user per month. Here, “per user” refers to employees utilizing technology for their work.

The number of users you pay for depends on the scale of services your company requires. 

For instance, if you have 30 employees using IT devices for work, whether PCs, laptops, or tablets, you’ll be billed for 30 users, placing your company within the $99/month to $350/user/month price range based on your specific service needs.

Low-priced managed IT services

At the lowest tier of the managed IT services spectrum, you’ll find oversight-only services, typically priced between $99 and $150 per month.

On the face of it, you’re paying to have the service provider monitor your system for abnormalities and or anything out of place. 

And in the event of an issue, you’ll receive immediate alerts. You then have the option to address the problem yourself or incur additional fees to have external experts step in and implement a solution.

It is important to note that these services have limitations and may not be particularly useful. Additionally, it might not be the most cost-effective choice, as you’ll need to spend extra money to have experts resolve the identified issues. 

In the long run, these extra costs that don’t seem like much at first will accumulate, eating into your pockets. This is especially so if breakdowns are frequent (such as in cases of outdated or over-capacity infrastructure). 

If you require additional services like end-user remote or onsite support, IT security services, or strategic planning for future growth, you may find hourly rates for these services ranging from $175 to $350 per hour.

Mid-high-priced managed IT services

Moving into the mid-to-high range of the managed IT services cost spectrum, specialized IT teams actively monitor for potential issues, proactively address problems, and often take measures to prevent them from occurring.

For instance, cybersecurity tests are conducted regularly to identify vulnerabilities in your security infrastructure, with immediate implementation of hardware or software upgrades to address any gaps.

These comprehensive agreements typically encompass round-the-clock IT support (sometimes unlimited), strategic IT planning, design services, backup and disaster recovery procedures, and a blend of both onsite and remote support.

Mid-high-priced managed IT services can be structured based on either the mid-high-priced managed number of technology devices or users. 

“Per device” pricing commonly ranges from $100-400 per server, $50-100 per workstation, $30-75 per firewall, and $15-40 per switch, among other devices with varying prices.

On the other hand, “per user” charges for these agreements typically fall within the range of $150-175 per user, depending on the specific services included.

High priced managed IT services

At the upper end of the price spectrum, packages hovering around $250-400 per user/per month typically involve fully hosted or cloud systems. 

Here, your IT company furnishes most, if not all, of the infrastructure (or “guts”) of your system, and you pay a monthly fee for usage along with similar support services as those in the mid-to-high range.

These figures are also within expectations if you opt for advanced cybersecurity services or if your agreement encompasses project labor.

Factors Affecting IT Support Pricing

The primary factor influencing the pricing of managed IT services is the range of services offered and the extent of involvement required from your managed IT services team.

Opting for an externally managed (yet fully integrated) IT support team incur higher flat fees compared to basic monitoring services. 

However, this choice eliminates concerns about unpredictable extra charges, offering substantial value as you essentially gain access to a comprehensive IT department.

Additionally, the complexity of your infrastructure plays a crucial role in determining your IT service expenses. 

Before providing you with any price estimates, the IT company will first evaluate your business’ technological infrastructure.

  • Workstations and Servers
  • Laptops, Tablets, and Smartphones
  • Wi-Fi for Guests and Internal Users
  • Onsite and Data Center Services
  • Antivirus Software
  • Web Filtering
  • Cloud Applications
  • Remote Site Connectivity
  • Business Software
  • Warehouse Management
  • Warehouse Connectivity
  • Regulatory Compliance Needs
  • Cybersecurity Tools & Requirements
  • Internet Service Providers (ISPs)
  • Number of Offices & Locations
  • Firewalls

These elements collectively contribute to the assessment of the complexity of your IT environment, allowing providers to provide pricing accordingly.

Wrapping Up: IT Management Cost in Toronto

When it comes to managing your business’s IT infrastructure, it’s important to strike the right balance between cost and quality of service. While it’s true that managed IT services can save you money in the long run, the pricing can be opaque and difficult to navigate. That’s why TickTockTech’s IT Support is here to help.

Our team of experts offers a comprehensive range of managed IT services, from basic monitoring to full-scale IT support. We understand that every business is unique, which is why we tailor our services to meet your specific needs. Whether you have 50 employees or 5000, we have the expertise and resources to help you achieve your IT goals.

What sets us apart is our commitment to customer service. Our team is available 24/7 to address any issues you may have, and we offer same-day service so you can get back to business quickly. We understand that downtime can be costly, and we’re dedicated to resolving problems as quickly and efficiently as possible.