IT Outsourcing is a Smart Move for Nonprofits

Key takeaways:

1. By reevaluating priorities and rethinking staffing strategies, nonprofits can discover that the cost of a full-service IT team provided by TCA may actually be less than that of employing a single minimum-wage employee.
2. Nonprofits face significant financial challenges, especially in managing IT costs, which are critical yet often expensive in today’s digital age.
3. The actual cost of maintaining an in-house IT professional can exceed $100,000/year, factoring in benefits and taxes.
4. A full-time employee paid at $15/hour actually costs a nonprofit over $40,000/year when including additional expenses like taxes and benefits.
5. Outsourcing IT services can be more cost-effective than maintaining in-house staff, offering access to a team of IT professionals for less than the cost of a single low-level employee.
6. By outsourcing IT, nonprofits gain flexibility, scalability, and access to a diverse range of expertise, allowing them to focus more on their core mission and less on technological complexities.

 

Maintaining a robust IT department often seems like a luxury beyond reach in the nonprofit sector, where every resource is precious, and every decision impacts the mission. Many nonprofits either forego IT support, constrained by limited budgets, or settle for entry-level IT.

However, a paradigm shift in how nonprofits approach IT staffing can unveil a surprising reality: it is possible to afford a comprehensive team of IT professionals. By reevaluating priorities and rethinking staffing strategies, nonprofits can discover that the cost of a full-service IT team provided by TCA may actually be less than that of employing a single minimum-wage employee. This revelation not only challenges the traditional notions of IT affordability in the nonprofit world but also opens doors to enhanced efficiency, security, and technological advancement.

Security and the Viability of Your Organization: With digital threats looming large, the need for robust cybersecurity is not just a luxury but a necessity for the survival and credibility of any nonprofit. Effective IT security safeguards your organization’s sensitive data, protects the privacy of your stakeholders, and ensures uninterrupted service delivery. Neglecting this crucial aspect can jeopardize not only your data but also the trust and good reputation your organization has worked hard to build.

The Reality of Nonprofit Budget Constraints: Nonprofits typically operate with limited financial resources, making it difficult to allocate funds for any IT, let alone all comprehensive IT departments. The struggle lies in balancing the need for advanced technological support with the primary mission-driven activities of the organization.

The High Costs of Maintaining an Internal IT Team: Maintaining an in-house IT team is a significant financial undertaking. It involves not just the salaries of skilled IT professionals but also encompasses benefits, infrastructure costs like hardware and software, and ongoing training and education to keep the team updated with the latest technological advancements.

The Advantages of IT Outsourcing for Nonprofits:

1. Cost Efficiency: Outsourcing IT services allows nonprofits to pay only for the services they need, significantly reducing overhead costs compared to fixed salaries of in-house staff.
2. Access to Expertise: Outsourcing provides access to a diverse team of IT specialists, ensuring that nonprofits benefit from the latest technology trends and solutions.
3. Flexibility and Scalability: IT outsourcing offers the ability to scale services according to the organization’s changing needs, allowing for more adaptable technological support.
4. Risk Management: External IT service providers typically have robust security measures, including regular backups, disaster recovery plans, and advanced cybersecurity protocols, which are crucial for protecting sensitive data.

The True Cost of In-House IT

When considering the financial implications of maintaining an in-house IT team, it’s crucial to look beyond just the base salary. The real cost of an in-house IT professional often exceeds expectations once benefits and taxes are factored in. For a skilled IT professional, this cost can easily surpass $100,000 per year. This makes hiring in-house IT cost-prohibitive for all but the largest organizations.

To put this into perspective, let’s consider a more relatable example: a full-time employee paid $15 per hour. While $15/hour may seem manageable, the actual cost to the organization is significantly higher due to additional expenses such as taxes and benefits. The national average indicates that the actual cost of an employee is approximately 1.4 times their base salary. This means that a $15/hour employee, when factoring in these additional costs, effectively costs the organization around $21 per hour.

Breaking this down further, at $21/hour for a standard 40-hour work week, the cost amounts to $840 per week. Over the course of a year, this adds up to about $43,680. This figure is a stark contrast to the initial perception of a $15/hour wage and highlights the hidden costs associated with employing staff.

Now, compare this to the cost of outsourcing IT services. Remarkably, the annual expense of outsourcing IT can start at less than the cost of this single low-level employee. This means that for less than $43,680 per year, a nonprofit could have access to an entire team of IT professionals through TCA SynerTech. This team would not only bring a diverse range of skills and expertise but also offer the flexibility and scalability that a single in-house employee cannot provide.

This comparison underscores a critical point: by choosing to outsource IT, nonprofits can allocate their funds more effectively. Instead of bearing the high costs associated with a single employee or sacrificing quality IT management to fit a budget, they can invest in a comprehensive team of experts, ensuring that their IT needs are met efficiently and effectively. This strategic decision allows nonprofits to not settle on support from an IT general practitioner and focus their resources on their core mission, enhancing their overall impact and sustainability.

Rethink Staffing Strategies

Staffing strategies often revolve around maximizing output with minimal financial input. While practical in many areas, this approach can lead to underinvestment in crucial sectors like IT. With the cost of maintaining an internal IT team or even hiring a single, entry-level employee being significant, nonprofits are frequently left with a dilemma: how to balance the need for skilled IT support with budgetary constraints.

But what if there was a way to redefine this balance? Imagine being able to trade just one of those entry-level salaries for something far more valuable – an entire team of IT professionals. This isn’t just a hypothetical scenario; it’s a feasible strategy that can transform the way nonprofits approach their IT needs. The question then becomes, if given the opportunity to make such a trade, would you take it? This shift in perspective could be the key to unlocking a level of IT support previously thought unattainable, paving the way for enhanced efficiency and a more significant impact on your nonprofit’s mission.

Hire an entire team starting at less than the cost of a single low-level employee.

TCA SynerTech presents a transformative solution for nonprofits grappling with the high costs of IT management. Their offering is not just a service; it’s a strategic shift in how nonprofits can approach their IT needs. By providing access to an entire team of IT experts at a cost that is lower than that of a single low-level employee, TCA SynerTech revolutionizes the way nonprofits can manage their IT resources, allowing even the smallest nonprofit access to quality IT support.

This proposition is particularly compelling when contrasted with the real cost of maintaining in-house IT staff, as previously discussed. Recall that a full-time employee paid $15 per hour, when accounting for taxes and benefits, can effectively cost an organization around $43,680 annually. In contrast, TCA SynerTech’s model allows nonprofits to invest this amount by gaining access to a broader range of expertise and services. This allows your organization to staff the best possible team for success.

TCA’s value is multifaceted:

1. Cost-Effectiveness: Nonprofits can significantly reduce their IT expenditures by opting for TCA SynerTech’s services. The savings realized here can be redirected toward other critical areas of their mission.
2. Expertise and Diversity: Instead of relying on a single employee or a small in-house team, nonprofits can benefit from a pool of professionals with diverse skill sets and specialized knowledge, ensuring that all IT needs are met with the highest level of expertise.
3. Scalability and Flexibility: The needs of a nonprofit can vary significantly over time. TCA SynerTech’s team can adapt to changing requirements, scaling up or down as necessary, which is a level of flexibility that is hard to achieve with in-house staff.
4. Focus on Core Mission: With IT needs in the hands of experts, nonprofit leaders can redirect their focus and energy towards their core mission and objectives rather than getting bogged down by the complexities of IT management.

At TCA SynerTech, we don’t just offer outsourcing IT; TCA will upgrade an organization’s entire approach to technology management. It’s an investment in a service that pays dividends in terms of cost savings, enhanced capabilities, and greater organizational focus. For nonprofits looking to optimize their operations and impact, partnering with TCA SynerTech is a strategic move that aligns with their financial constraints and their mission-driven goals.