Electric Generates 105% ROI for Clients, According to Forrester Study

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Electric Generates 105% ROI for Clients, According to Forrester Study

Electric generates 105% ROI for Clients, according to forrester study
Read Time: 4 minutes July 8, 2022

Powering the IT needs for a small to medium-sized business is no easy feat, particularly when it comes to maintaining cost efficiency. In an effort to reduce expenses, many organizations opt to hire internal IT staff, often without realizing the true cost of an in-house team. Managed IT Solutions offer an outsourced alternative, but you must balance cost, services, and quality when making the right decision for your business.

Assessing your options can be difficult, not least because of a lack of transparency on costs. To provide clarity on the potential return on investment you can expect from Electric’s Managed IT, we commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study of our services. Ultimately, the study determined that Electric customers experience a 105% ROI. Keep reading for the full breakdown of benefits and savings identified in the report.

Better IT Support at Lower Costs

To evaluate the benefits of working with Electric, Forrester conducted a financial analysis and interview with an Electric client. A marketing communications company with 55 employees, the organization has annual revenue of $15 million with plans to expand internationally.

Previously, the business worked with two IT Managed Service Providers, but experienced challenges with both. The first offered a reasonable cost structure, but with unacceptable service gaps. The second met the organization’s IT service needs, but frequent change requests drove costs up.

After partnering with Electric, all required services are now in the scope of the client’s contract, at a lower cost than the base contract of the previous MSP. Key results from this change include:

  • Equal or better services in all IT service categories, while paying approximately 25% less per year.
  • Savings in onboarding and offboarding by transitioning activities that had additional costs with the previous MSPs.
  • Labor savings and direct savings by transitioning to Electric for device management and application management.

ROI of 105% with Electric

As a result of working with Electric, Forrester’s report projects the organization will make the following savings over three years:

  • $212,745 through the elimination of their IT MSP
  • $32,322 in application management-related savings
  • $25,343 in device management labor savings
  • $4,345 in onboarding/offboarding labor savings

In total, the organization experiences benefits of approximately $275,000 over three years versus costs of approximately $134,000, resulting in a net present value (NPV) of $141,000 and ROI of 105%.

The cost of Electric’s implementation, base contract, and special projects are approximately 40% less than the cost of the organization’s contract and project costs with its previous IT MSP. Forrester found the Payback Period – the breakeven point for the investment in Electric – is less than six months.

“We had a virtual CTO with the prior MSP, and we would get charged for any experts that it brought in. With Electric, my customer success representative is very knowledgeable, they meet with us more frequently, and we don’t get charged for experts brought in to talk to us.”  

Expert Support, Focused on Your Success

In addition to cost savings, Forrester also identified a number of unquantified benefits of working with Electric, including:

  • Visibility into IT health scores, IT support and request activities, software application, and device inventories
  • Expert-level remote IT service
  • Highly engaged customer success manager and advisory sessions with subject matter experts at no additional cost
  • Ongoing improvements to existing services without extra charges
  • Flexibility to scale and adjust contracts to reflect the client’s growth

“We are paying considerably less money, and all the services are equivalent or better. An example would be security, which is crucial to protect our business. We have had no breaches, and I feel as comfortable now as I did with either of the other MSPs that we [previously] had.”

Find Out How Much You Could Save with Electric

Want to know how much your organization could save with Electric? Check out our free Cost Calculator. Simply input your employee headcount and the number of SaaS applications in use by your organization, and you’ll instantly discover how much IT is truly costing your business. And, you’ll learn what savings are in store if you switch to Electric. Get in touch with our team of IT experts today to find out more.

AUTHOR

Jessica Farrelly

Jessica is a content writer with more than 8 years of experience covering SaaS and the tech industry. She has worked with both B2B and B2C publications across North America, Europe, and APAC and currently writes about IT Solutions or Electric.

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