IT costs (information technology-related expenses) usually hit hardest during unplanned downtime, as these incidents exacerbate revenue loss and can force you to rely on emergency labor, which is usually more expensive than scheduled work. The damage these outages cause can already cost a lot due to productivity loss, but emergency IT expenses can make it worse.

Business intelligence and market insight provider IOT Analytics recently published statistics noting that downtime costs manufacturers alone an estimated $1 trillion a year. You can lower your business's risk of experiencing such a devastatingly high cost of downtime by shifting from a break-fix model to a more proactive, preventive approach of investing in managed services.

What Are IT Costs? 

IT costs refer to all the expenses you incur as a result of acquiring, operating, maintaining, and supporting your business's information technology infrastructure. They vary from one company to another, but the general major cost categories include:

• Labor and personnel, such as the salary of an in-house IT staff or the flat fee rates of an outsourced IT support team
• Hardware, including computers, data network equipment, and servers
• Software and cloud services, such as on-premises software, software licenses, cloud hosting, and software as a service (SaaS) subscriptions
• Telecommunication services and facilities like Internet connections, server rooms, data center utility overheads, and data transmission rates

How Much Do IT Professionals Charge?

It largely depends on whether you have an in-house IT team or work with an outsourced managed service provider (MSP). Retaining an in-house team often costs much more, considering the high salary requirements of IT professionals.

The most recent figures from the U.S. Bureau of Labor Statistics can give you an idea, which note that the median annual wage for computer and IT occupations is $109,470 (as of May 2025). It's more than twice the median annual wage for all occupations, which sits at $50,980.

Why Do IT Costs Hit Hardest During the Hours You're Already Losing Money? 

IT costs hit the hardest during unplanned downtimes because these incidents already cost a lot of money in losses. Compounding this is the need to rely on emergency labor, which usually costs more than services scheduled beforehand.

Downtimes Are Already Expensive

Business insight and data reporting platform DemandSage notes that in the U.S., a one-hour internet outage can lead to a $458 million loss. It further notes the "Mean Time to Restore" (or MTTR, the average time needed to return the service to normal operations) averaged 80 minutes globally.

Whenever your business experiences unplanned IT downtime, it loses money from direct revenue loss. An example is when your IT hardware and software go offline, which completely halts direct sales and transactions.

Another thing that makes IT downtime expensive is that it causes productivity loss. Each time you experience an internet outage or have office computers break down, your employees become idle. Even if they can't do any work and have severely reduced efficiency and output, you must still pay their salaries.

Emergency IT Repairs Often Cost More

Emergency repairs typically cost more, forcing you to go over your small business IT budget and raising overall operating expenses. Such higher IT costs often arise from technicians charging premium rates for:

• Immediate dispatch calls
• Services done after business hours
• Weekend work

Depending on the problem, you may also have to spend more on IT expenditures if the resolution requires expedited shipping for replacement hardware or specialized server parts. Same-day or overnight deliveries can drive up your total material costs.

On top of the higher repair charges associated with emergency IT repairs are the longer-term financial consequences of rushed troubleshooting.

Sometimes, the need for immediate solutions to outages can lead to "band-aid fixes." In these situations, technicians may only deal with the symptoms rather than addressing underlying infrastructure failures. Since the underlying problem remains unsolved, it may trigger repeated repair visits, further driving up IT costs.

How Proactive, Flat-Rate MSP Solutions Can Help With IT Costs 

Managed service provider solutions can help you save time and money by delivering robust IT support services that help minimize downtime and reduce security risks, as noted in this guide discussing working with an MSP in Raleigh, NC. Whether it's hardware, software, or flexible cloud options you need, a top-rated MSP should be able to provide what you require.

When you partner with an MSP, you can outsource all or just a few of your IT needs. Examples of preventive and proactive IT solutions you can expect from highly reliable MSPs include:

• Computer hardware support
• Cloud solutions
• Data backup and recovery
• Cybersecurity services
• Server and network solutions

Outsourcing your IT needs to an MSP can help reduce costs because it lowers your in-house staffing expenses. You can also improve budgeting, as you'd typically pay a predictable monthly flat rate and, if needed, request pay-as-you-use services.

Frequently Asked Questions 

How Do Proactive IT Approaches Differ From Break-Fix Models? 

Proactive IT approaches differ from a break-fix model in that they aim to stop problems before they occur, worsen, or cause a more severe disruption.

Examples include routine software patching and regular security updates. Continuous system monitoring and preventive equipment maintenance (e.g., server and rack cleaning and cable management) also fall under proactive approaches.

A break-fix model, on the other hand, is a reactive process. It involves calling IT professionals (e.g., IT support or computer technicians) only when a piece of hardware or software fails and breaks down.

Does the Break-Fix Model Always Cost More Than Proactive Approaches? 

No. Break-fix solutions can sometimes cost less than proactive approaches, as providers only bill them per incident or service call.

Break-fix models, however, can become more expensive in organizations that rely heavily on IT infrastructure. Examples include e-commerce stores, financial firms, and logistics companies. As many of their core processes rely on information technology, IT downtime can lead to significant productivity and financial losses.

Prevent IT Costs From Hitting Your Organization Hard 

Because IT costs often hit hardest during outages when you're already losing a lot of money, it's smarter to invest in preventive, proactive approaches. Working with a highly experienced, trustworthy MSP is a wise choice, as it can help reduce the risk of costly problems.

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This article was prepared by an independent contributor and helps us continue to deliver quality news and information.