The Cost of Good Technology
May 17 2016
Cloud computing. Integrated software. Mobile access.
Ten years ago these terms were only known by technology experts. Now they’re watercooler topics.
Technology has grown quickly in the last decade and continues to grow even faster. According to the Bureau of Labor and Statistics, technology industries are growing faster than any other industry in the U.S.except Boomer-fed health care.
So what does this mean for your company?
You Need Good Technology
A business’s success is tightly connected to its technology.
Maybe you’ve avoided technology thus far, but your business is fading into the past. You need more than a yellow book listing. Though word of mouth is still the most effective form of advertising, much of it is happening online. Your web presence is more important than your office showroom or corporate foyer.
Maybe you’ve “tried technology and it didn’t work.” Then you did it wrong. Bare minimum and generic approaches endanger businesses rather than help.
Just having something technological isn’t enough. Inadequate technology can be destructive. It isn’t enough that you have a website, intranet, app. It’s how you go about developing technology for your company that determines the overall success of your company. The right technology can:
- increase exposure
- improve customer service and experience
- increase efficiency
- prevent liability
- help your company focus on what it does best.
Your software/website/app should be created custom for you by a team of specialists with professional resources available. That leaves you with two options:
- develop your own technology team
- outsource your technology
The Costs of Building and Maintaining a Tech Department
Our clients want to see the bottom line, and we gladly show them where their investment is going. And if they choose, they’ll compare our services with that of another company.
But what about the cost of developing technology resources in-house?
Every project/company is different, but here are the basics of what it would cost you to build your own tech department.
Salaries, benefits and overhead costs money.
Computer and Information Technology occupations are projected to grow 12% from 2014-2024, creating almost half a million new jobs. Compensation is expected to grow by 17%, far higher than the average. And in addition to the median pay for software developers of $106,000, an employer may pay 50-100% of that figure in benefits, taxes, insurance, etc.
Not to mention how overhead costs add up, such as hardware and software, office space, utilities, hosting services, etc.and the strain on human resources.
Technology is limited to expertise.
As the need for cloud computing, integrated software development and mobile access grows, so do the variations in specialty training and resources. You will need specialists to handle your company’s technology needs.
And as your needs grow, your employees will need to grow with them. Technology expertise isn’t solidly founded on traditional education. Professionals learn far more on the job, personal research and professional networks than they would in a classroom. And what they knew ten years ago won’t cut it today.
To maintain an effective technology department, you need to keep expertise balanced. Either you’ll pay more for a trained employee or pay for professional development...and then potentially lose the expert you just invested in.
Developing technology is seldom long-term.
First, software is better maintained by those who develop it. But once the software is developed, maintenance is seldom a full-time job. So what do you do with your experts to fill in their time? You’re faced with making it work or letting them go, both of which are potential issues.
Managing a technology department takes away from what your company does best.
Too often businesses get caught up in the business of business and neglect their specialty. Are you an IT company? No? Then you need to put as little focus on managing IT as you can.
We provide a fair estimate for our services. It may seem like it’d be much easier to DIY in-house, but think about what we provide.
- You’re purchasing a service, not hiring an employee.
- We have an abundance of expertise and resources to use if needed, for as long as needed.
- When we are done, we are done. (Though we do provide maintenance and hosting for a small fee.)
- We work with you, and that takes some of your time. But not as much as if you were managing, training, developing, and rehiring a department.
It’s kind of like contracting the building of your home yourself or hiring someone else to do it. If you want to do it because you want to do it, that’s one thing. But it isn’t going to save you time or money.
In short, there’s more than just the bottom line to consider when developing your software. We’d love to talk to you about our expertise and resources to customize software specifically for you.