With a market cap of $119 billion, 2014 sales of $48 billion and ranked number 12 in the world’s most valuable Brands, Cisco are the industry leaders in IT Networking equipment. The likelihood is that readers of this article will be working with or have worked with Cisco Network Systems. Therefore if your company is working with a Cisco Network System then you’ve faced the dilemma of choosing between outsourcing the need for Cisco Support or employing in-house Engineers.
As an SME, Enterprise or a non-ICT related company with a Cisco IT/Phone system, then you need to think about the level of Cisco Engineers you need to employ for your business. Whereas Managed Service Providers, Professional Services & Cisco Channel Partners need to think about the level of Cisco Engineers your clients require. Either way, outsourcing can provide your business with the specialist Cisco skills you need and at a fraction of the cost and risk of employing Cisco Engineers in-house.
1) Lower Operational Costs
In the UK Cisco Engineers command high salaries and rightfully so, they’ve studied and trained hard to achieve their status. Current 2015 average salaries for Cisco Engineers in the UK are:
Your Operational costs don’t end there, other costs associated with in-house Cisco Engineers are:
- Holidays & Sickness
- Salary benefits – Bonus, Shares, Pension, Health Care & Annual Pay Increase
- Additional Benefits – Company Car, Petrol Allowance, Laptop, Mobile Phone
- Maternity/Paternity Pay
- Staff Training
- National Insurance & Tax Contributions
- Portion of running costs – office, furniture, equipment, admin costs & consumables
- Cost of Employment – In-House costs or Recruitment Agency
Accumulating the additional costs of employing in-house, a CCNA salary can be well in excess of £50,000 per year or around £23 per hour. Compare this to the average hourly rate of a CCNA which is currently £18 per hour resulting in savings of 27.8% when outsourcing against employing in-house. Your wallet, your choice.
(Visit http://www.accountingservicesforbusiness.co.uk/calculators1/true-cost-of-an-employee/ to calculate the annual cost of your employees and http://www.itjobswatch.co.uk/contracts/uk/ccna.do for CCNA rates)
2) Access to Skills & Knowledge
The Internet of Things (IoT), mobile devices, smart cities, big data and the human fascination and dependency on technology facilitate the need for Cisco Engineers to specialise in certain tracks. You might have an in-house CCNA, or CCIE, but do they specialise in Unified Communications, Security, Wireless, VoIP, R&S and Data Centre? How many hours and years of training would be required to have access to such a varied and multi-skilled workforce in-house? How much would this cost your company?
Having access to the skills and knowledge of certified Cisco Engineers is the most significant reason to consider outsourcing your need for Cisco Support. Quality of service is often cited as a reason not to outsource, however if you focus on creating strict SLA’s and define a clear scope of work between your outsourcing partner, then you can achieve exemplary quality of service for your end customers.
If you outsource your Cisco Support then you simply pay for what you need and use. Replace outsourcing with employing the multitude of Cisco Engineers in-house and you’ll need to ensure you have enough work for the Engineers every day, 52 weeks of the year.
How much time and money do you think line managers and HR departments waste on frivolous staff issues? “Can I have a day off for the dentist?”, “I need to take my dog to the vet” and so on. Employees also are savvier with their knowledge of employment legislation and their rights – holidays, sick pay, pensions, maternity leave and more heavyweight issues such as unfair dismissal and equal rights. It’s not only your balance sheet at risk; it’s your Brand, reputation and credibility in your industry. Taking risks is part of business, but if you can avoid being exposed to such substantial risks then why wouldn’t you outsource.
Do you employ in-house or outsource and why? However opinionated you may be, please feel free to leave your comments.