MSP ROI: What Are You Really Getting for Your IT Dollars?
Let’s be real: “ROI” gets thrown around a lot in sales pitches. But when it comes to managed IT services, ROI isn’t just a buzzword—it’s the reason smart small businesses invest in an MSP in the first place.
Think of it like this: every dollar you spend on IT should come back to you—either in money saved, money earned, or time rescued. (And let’s be honest, time = money.)
So how do you know if your MSP is actually worth it? Let’s break it down.
1. First, What Is ROI?
ROI stands for Return on Investment. The formula is simple:
ROI = (Gain – Cost) ÷ Cost × 100
So if you spend $1,000 a month on managed services, and the value of what you save or gain is $3,000, then:
($3,000 – $1,000) ÷ $1,000 × 100 = 200% ROI
Not bad, right?
2. Where Does the ROI of an MSP Actually Come From?
Let’s look at specific ways MSPs deliver value to small businesses:
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Reduced Downtime
Every hour of downtime costs SMBs an average of $427 to $9,000, depending on size and industry. An MSP minimizes those interruptions—or prevents them entirely.
β
Fewer Internal IT Costs
The average in-house IT technician costs $60k–$80k/year. A full-service MSP can deliver broader expertise for a fraction of that.
β
Improved Security
One successful ransomware attack can cost a business $120,000+. Our proactive security measures help prevent incidents before they happen.
β
Better Productivity
When tech just works, employees waste less time troubleshooting and more time doing their actual jobs. Even saving 15 minutes per day per employee adds up fast.
β
Vendor Management
We handle tech vendors so you don’t lose time chasing support reps or navigating weird licensing clauses. That’s time you can reinvest into your business.
3. ROI by the Numbers: A Sample Breakdown
Let’s say you’re a small business with 15 employees, and you hire an MSP (like us) at $2,000/month.
Here’s what you get back:
Benefit
Estimated Annual Value
98% uptime vs 95% (25 fewer hrs of downtime) × $500/hr
$12,500
15 mins/day saved × 15 employees × $30/hr avg wage
$28,125
Avoided ransomware incident (avg cost)
$120,000
No need for full-time IT tech ($75,000/year saved)
$75,000
Faster ticket resolution, smarter decisions, peace of mind
Priceless (but let’s call it $10,000)
Total Value: $245,625/year
Total MSP Cost: $24,000/year
ROI = ($245,625 – $24,000) ÷ $24,000 × 100 = 923%
Yeah. We’d take that trade too.
4. How to Calculate Your ROI
Ask yourself:
- How much time does your team spend dealing with IT issues?
- What’s your average cost per hour of employee time?
- Have you experienced downtime? Security incidents?
- What tools or services could be automated or better integrated?
- How much are you spending on in-house IT (if any)?
- Are your existing vendors working for you, or are you doing their job?
We’ll help you crunch the numbers if you need.
5. MSPs Aren’t Just a Cost Center—They’re an ROI Engine
At Techstra Solutions, we focus on building technology ecosystems that generate real, measurable results.
Whether it’s boosting productivity, avoiding costly mistakes, or just keeping your tech running smoothly—we make sure your investment in IT pays off.
Ready to Calculate Your ROI?
We offer a Free ROI Analysis as part of our IT Assessment. Let’s look at your systems, your costs, and your opportunities—and build a tech strategy that earns its keep.
π§ sales@techstra.co | π (385) 270-9170
One partner. One ecosystem. ROI you can see.
You’re already spending money on IT. Let’s make sure you’re getting something back for it.
(And not just stress.)







