IT Consulting Firms: The Issue Of Opportunity Cost
Most business managers and owners are familiar with the concept of opportunity cost, but they may not be applying the idea to their decisions regarding IT support and outsourcing. Simply put, opportunity cost is the foundational economic concept that whenever a decision is made, certain trade-offs will occur. Something must be given up as a consequence of the decision made. Whatever is given up is referred to as the opportunity cost of that particular decision.
Here's how opportunity cost is involved in IT consulting:
Custom Solutions for SMBs
Opportunity costs should be carefully weighed whenever a small or medium-sized business encounters tech difficulties or it is planning to implement a new form of technology. Many times, SMBs try to handle these issues on their own rather than outlay funds to pay for IT consulting. This can be a strategic error since non-experts are likely to spend a great deal of time dealing with the technology involved. These efforts also detract from longer-term projects, for which internal staff are better positioned to execute.
This time could have been spent on profit-generating activities such as pursuing new clients. The opportunity cost, in terms on dollars and time, of doing the work yourself could well exceed the amount you would have to pay to hire an IT consulting firm to take care of it for you. If you're looking for a different class of outsourced IT service, our experts can help. From cloud computing to compliance, we can customize IT solutions to meet your unique business needs. For more information, please reach out to iCorps for a free consultation.