2. Overview
The benefits of insourcing IT
services for the City of La Quinta
outweighs any pros that outsourcing
these services can provide.
3. Pros of Outsourcing
Can be used to assist in-house staff with
special projects.
Typically exposed to newer technology
sooner.
Can be cheaper for a company with fewer
than 30 employees.
4. Cons of Outsourcing
Slower response times to technical issues.
Not as knowledgeable as in-house staff with
existing systems.
Longer resolution times.
Time constraints can cause hurried work
potentially creating more problems.
Hourly rate can cause budget creep.
Trust issues with confidential data.
5. Benefits of Keeping IT
Services In-House
Faster response times to technical issues.
Internal staff has more intimate knowledge
of systems in place.
Less technical employee turnover than can
be seen with consulting firm.
Better employee satisfaction with technical
services.
Cheaper in the long run for company of the
City’s size.
6. Financial Impacts
Hourly rate of contract company averaging
$85/hr., would cost $176,800/yr. to keep
service levels same.
Retaining in-house staff costs $111,000 which
includes benefits.
Potential savings to City of retaining in-
house IT services of $65,800.
