The Rising Cost of IT Services

June 23, 2022

We often hear questions from clients regarding the rising cost of IT services. We are all aware of inflation happening right now. So let’s look at how that affects us behind the scenes.

If we have public services, we pay for human resources. As you know, in the past two years, the cost of staffing - especially skilled IT professionals - has increased more than 30%. So that’s one factor that brings our price up.

In addition, the vendors we use have also raised their prices drastically. Most vendors use cloud infrastructure. As they buy more resources, their costs increase, and they roll this price on to us. As a result, our hosting services tools have increased 25 to 30% over the last two years.

We have to absorb some of the cost. But sometimes we must pass some of the extra cost on to our clients. That is the cost of doing business. No one wants to go out of business because of rising costs. So we need to raise the prices.

The rising cost for our personnel for helpdesk and Security Center is jumping drastically. So, unfortunately, we also need to roll these costs on to our clients. We have absorbed the cost as much as we can. But sometimes we don’t have the option and must raise our prices.

I hope this helps explain how one domino affects another. Now you know why we must raise our prices. If you have any questions or concerns, reach out to us.

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