How IT Service Providers Cost Projects

Sunday February 19, 2017

Learn how IT providers cost project services

 

Knowledge is power and I’m about to give you some in regard to being able to roughly estimate how much you should be paying for professional services when upgrading your network.

Every business at some stage will arrive at the time to upgrade their Server hardware and operating systems. For the most part these days hardware has become a true commodity, so once you have the various specifications nutted out, you can shop around for the most competitive quote and easily compare apples with apples.

 

Unfortunately the same can’t be said when it comes to the costs associated with the technical services required to install, configure and migrate to the new systems.

 

So to help understand what makes up the services required and how service providers calculate the associated costs we’ve put together the following guide based on a Microsoft Small Business Server (SBS 2011) new installation and migration. Below are the average timings used to calculate the costs of this type of project. 

 

Task

Hour

Allowance 

Server Hardware Build and Operating System Installation  

7.00

Exchange Migration

3.00

File System Migration

4.00

Active Directory Migration

3.00

Printer Migration – up to 3 Printers

1.00

Migrating each PC / Laptop and moving profiles etc

0.50

                               Post Migration Support

Less than 6 Users

3.00

6 – 12 Users

4.00

12-20 users

6.00

20-30 users

8.00

 

So if we take a company with fifteen users the total equal 29.50 Hours.

 

Industry rates vary on project work however $160 per hour is average, so your total cost should be around $4,720 for the project. 

 

Now keep in mind if you are receiving a fixed price quote, the provider will build in a contingency generally that will be around 5%, so that will add $236, they may also add 5% for project management so another $236 bringing the total price $5,192

 

There you have it, when the time comes to upgrade your network you can use these formulas to determine if you are receiving good value for money on the professional services.

author-image

Craig Boyle

Craig Boyle is the Co-Founder and Head of Sales & Marketing at MSP Blueshift, an award-winning Australian IT services company. With a career in the IT industry dating back to 1998, Craig has deep technical knowledge and a passion for helping businesses grow, protect, and streamline their operations. Through his writing, he breaks down complex IT and cybersecurity topics into clear, actionable insights for business leaders who want peace of mind and performance from their IT investments.

When he’s not writing or advising clients, Craig can be found at the racetrack supporting his son’s karting career.

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