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                              Technical Support, Inc.

 

 

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Weighing the pros & cons of Consultant -vs- Employee?

We want to say right up front that if you need 176 hours of support each month (22 week days times 8 hours), it may be more cost-effective to hire a Full-Time W-2 Employee (if you are fortunate enough to find someone who trains quickly and does not require a great deal of hand-holding).  But if you would need to invent work to keep them occupied at least part of the time, you may want to consider engaging our services on an "as needed" basis instead.

An MvCaTs Consultant routinely produces from two to five times the useable code of less experienced programmers.  We're accustomed to hit the ground running and to cranking out high volumes of code in short amounts of time.  When you engage our services, you get a lot more than an hour's worth of work in an hour's time.

In this challenging economy, deciding whether to make any financial commitment can be daunting and requires considerable thought.  That's why MvCaTs offers the most flexible SMAs with the widest variety of terms and the lowest rates in our industry.

The table below was designed to aid your decision-making process regarding whether to commit to one of our Software Maintenance Agreements (SMA).  The As Needed column shows the Cost of engaging an MvCaTs Consultant for a commitment of just 40 hours per month at $105.60 per hour based on our 20% SMA with 18 Month Term and Rate Lock.  That represents a $26.40 per hour savings off our current $132.00 Remote Rate.  The Full-Time column shows the Cost of hiring an experienced PICK Programmer / Analyst as a W-2 Employee for a commitment of 176 hours per month offering a salary of $40.00 per hour.  Both costs represent a full business expense write-off, but that is where the similarities end.

Other expenses associated with Full-Time include posting job ads and conducting interviews, hiring, training, providing office space, equipment, and parking, and doing without their help while they take paid time off.  Conservatively speaking, six weeks of their salary will cover time off the job.  Of these expenses, only paid time off could be quantified in the table below.  But if you engage our services and one of us is not available, another will be.

Annual Commitment Cost Comparison As Needed Full-Time
Description of Expense SMA Consultant W-2 Employee
20% Software Maintenance Agreement -vs- Annual Salary

$50,688.00

$84,480.00

Payroll Expense for Social Security Tax (FICA)

0.00

5,238.00

Payroll Expense for Medicare Tax (MEDI)

0.00

1,225.00

Payroll Expense for Federal Unemployment Tax (FUTA)

0.00

56.00

Payroll Expense for State Unemployment Tax (SUTA)

0.00

243.00

Payroll Expense for Workers Compensation Tax (BWC)

0.00

250.00

Expense for Medical, Life, Dental, Vision, Disability Insurance

0.00

12,000.00

Match 401k Contributions

0.00

6,000.00

Employee Bonuses

0.00

6,000.00

Employee Expense Account

0.00

3,000.00

Example of Total Annual Commitment -->

$50,688.00

$118,492.00

Portion of above Total to cover Vacation, Sick Pay, Holidays -->

0.00

$13,465.00

Available around the clock 24/7/365?

Yes

Not happening

Full Money Back Guarantee if not satisfied?

Yes

In your dreams

The above table uses our 20% SMA for a commitment of just 40 hours per month for a 18 Month Term with Rate Lock.  But we offer SMAs for as little as 1.8 guaranteed Hours per month or a Term as short as 2 months.  An MvCaTs Software Maintenance Agreement guarantees that a Consultant will be available 24/7/365.  And when you engage our services, you get the education, experience, and expertise of several Senior PICK Programmer / Analysts, not just those of one employee.  We also have a network of Strategic Partners to solve both hardware and software needs.  If you commit to us, we'll commit to you.

Perhaps it's time for a closer look ...

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This page was last modified on December 31, 2011.