Integrator Boosts IT Networking Profit by 50% via Outsourcing
CE Pro 100 company Maverick Integration takes on more home networking jobs, as well as smaller projects, by outsourcing IT work. The company estimates it saves $300K in salaries and earns 50% more profit via outsourcing.
For many integrators, outsourcing is a last resort. They find it difficult to trust their brand and reputation to another company. But outsourcing, from security monitoring to programming, is really a “dollars and sense” decision. If the amount of time and money required to bring your existing staff up to speed is not feasible, outsourcing can make a lot of sense.
There is no doubt home networking is becoming a staple of the industry. IP/IT skills are more necessary than ever, but along with home networking comes an increased service burden. That is one reason some successful integrators have opted to outsource their networking vs. using internal staff.
Dennis Jaques, president of CE Pro 100 company Maverick Integration in Bedford, N.H., is sold on the concept. His company outsources its networking needs to Access Networks, which does the configuration and service.
“For us to be able to provide our customers with the same level of capability in a network offered by Access Networks, we would have to add a minimum of three employees: a high-level tech, a system designer and someone to program and manage the network once deployed,” notes Jaques. “Finding three qualified employees to handle those functions would most likely require around $300,000 in salary per year - and that’s assuming you could find the talent. Most people who would have the qualifications would already have a career in a corporate environment.”
“In our business, the most profitable thing we sell is our time. Labor accounts for nearly half of our annual revenue. So having a plug-and-play solution that can provide us with a reliable, robust network that automatically provides us with three additional employees that we can sell without any additional work on our end is a tremendous asset to our bottom line,” adds Jaques.
Jaques says the key to the outsourcing partnership is confidence. He says he actually has more confidence in the networking systems Maverick is deploying than if they had done it all internally.
“It really goes beyond switchers and routers. Before we discovered there was a solution out there that provided a complete network, not just products, being able to deliver reliable Wi-Fi was a labor intensive, hit-or-miss scenario. We were at the mercy of a range of any number of different vendors. Being able to turn to a single, network solution provider completely eliminated that,” he adds.
The process works like this: Maverick gives Access Networks an overview of the system, and then it shows up in a box and the installation team plugs it into the system.
“It really is that easy,” remarks Jaques. “And because it’s that easy, I can send our lowest-level tech out into the field and that person can easily install sophisticated, enterprise-grade networks in a limited amount of time. So now I can have techs deploying these high level networks - networks I know are going to work each and every time - and we’ve increased our profitability by 50 percent without doing any additional work. Honestly, I don’t know why more of our competitors aren’t doing this.”
“We are able to make money on the small jobs, which was unheard of when it came to networking,” he concludes.
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Steve Crowe has been writing about technology since 2008. He lives in Belchertown, MA with his wife and daughter. Have a suggestion or a topic you want to read more about? Email Steve at firstname.lastname@example.org
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