Outsource IT to Maximize Technology Budget - Modern Distribution Management

Outsource IT to Maximize Technology Budget

Using a third party instead of in-house professional could save money.
Eric-Smith-84x84

From software to hardware, from servers to email exchanges, from setting up desktops to servicing laptops, companies spend a considerable amount of money each year on information technology. Taking an inventory of your IT budget could reveal ways to optimize profit by reducing expenses and dedicating those resources elsewhere.

One area where small- to medium-sized distributors might be able to cut costs is by outsourcing the IT department. That was one proposal Ryan Meray of C! Tech Solutions, Ferndale, MI, offered attendees last week at the Power Transmission Distributors Association Industry Summit in Orlando, FL.

Every business looks for ways to save money and distributors are no different. Meray delivered a host of tips about cutting costs during the "Maximizing Your Technology Budget" workshop.

Meray, whose firm advises businesses of all sizes and across all industries on IT solutions, said most companies, as a general rule, shouldn't employ a full-time IT professional unless they have at least 75 employees. And most companies need just one IT staffer for every 100 or so employees.

Outsourcing often makes financial sense, considering the costs of employing a single IT professional versus hiring an outside firm to handle technology needs. For example, Meray said, if an in-house IT professional makes $60,000 in salary and benefits, and outsourcing those services to a third party runs just $4,000 a month, that's an annual savings of $12,000 annually.

Another factor to consider: Your company's IT employee must be a jack-of-all-trades, someone who is well-versed in numerous platforms and problems. Using a third party means more than one person – indeed, an entire company of experts – is available for dedicated support on specific IT needs, perhaps something beyond a single employee's capability.

"There's so much that can be outsourced," Meray said.

The savings could help maximize your company's technology budget, freeing up money for professional development, enhancing mobile infrastructure or paying sales bonuses.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!