Is Dynamics In-House More Expensive Than Outsourcing?

February 12, 2019

How much does it cost?

MCA Connect is a Microsoft Dynamics 365 partner that sells Microsoft Dynamics 365 Managed Services, as well as break-fix support, and ongoing technology consulting services.

Our MCA Advantage service is a bundled offering that combines traditional Microsoft Dynamics support, PLUS proactive consulting advice. This model is similar to IT Managed Services, but built specifically for Microsoft Dynamics customers.

When we talk to potential clients about managed services, they always want to know, how much does it cost? Will it be more or less expensive than internally supporting the systems? Let’s break it down.

Your Dynamics 365 Managed Services Costs

Your Dynamics 365 Managed Services costs are calculated by considering:

  • Which Dynamics 365 solutions you’re using – CRM, ERP, Field Service, etc.
  • How many – and which – ISV solutions are in place
  • How much customization and integration work has been done
  • The number of total and active users
  • How long you’ve been live on Dynamics 365

Based on your answers, you pay one fixed fee per month or per year.

What’s Included in Dynamics 365 Managed Services?

Most routine maintenance items are included automatically:

  • A fixed-interval application of Microsoft service pack updates (which will be obsolete come April, when Microsoft will begin releasing monthly required releases)
  • Break-fix support calls for Microsoft Dynamics, including any ISV solutions you have in place
  • Unlimited Dynamics Administrator support
  • Proactive management of ongoing IT initiatives
  • An in-house support team (not just “bench consultants”) who understand your business deeply on a functional and technical level
  • Priority response times

Each Managed Services contract is customized for each specific client’s needs, so it’s important to clearly communicate your requirements to ensure you have the services you expect.

What’s Typical Without Managed Services?

Blog_01.24.19Typically, after a Dynamics 365 implementation, clients are facing a few common challenges:

1. The project team is tired! Hallelujah, your new system is live, but no one has an appetite to implement Phase 2 or 3. In order to go live in a reasonable timeframe, some critical functions may be moved to later phases. If you never go back and implement those processes, you don’t get the intended benefit from your systems.

2. The internal IT team doesn’t have Dynamics 365 expertise. While it sounded great on paper to train internal IT staff to support the system, the team is stretched too thin. They’re researching problems online and scrambling to find answers in a timely manner.

3. They feel stuck in first gear. Having lost momentum after the implementation, they haven’t implemented all the features they originally wanted, and are supporting users who don’t have enough training and experience. Because they’re trying to keep external support costs low, they don’t call for small issues, and over time, those issues snowball into bigger problems.

So… What Does Managed Services Cost?

While it’s hard to know exact figures, when you estimate the cost of hiring resources internally and using break-fix support compared to using an outsourced Managed Services team, we think the costs are going to come out pretty close to the same.

You might pay slightly more with Managed Services, but you’re also getting greater value.

  • You have a team you can call on for any issue, and that team knows Dynamics inside and out.
  • You have a regular cadence of sprints to improve the system, and the enforced discipline to do it correctly, moving from development to test to production environments.
  • You’ll keep up-to-date with incremental advances rather than big upgrades.
  • You don’t have to worry about surprise support bills – it’s all included.

Want to learn about MCA Advantage?

MCA Advantage fills the gap between traditional managed services application support and project-based consulting services.

View the MCA Advantage Fact Sheet to learn more – or contact us to start the conversation!

Author: Craig O’Connor, Director, MCA Advantage

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