By: Brian DeVault

Return on investment, or ROI, is easily the most important metric that companies look at when it comes to decision making. ROI oftentimes allows businesses to make strategic decisions based on the data and determine the impact those decisions have. According to Forbes Advisor, “ROI is a metric used to understand the profitability of an investment. ROI compares how much you paid for an investment to how much you earned to evaluate its efficiency.” While that definition is accurate, Brian DeVault likes to define ‘investment’ more broadly. 

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In this week’s White Board Wednesday video, Mike Cromwell and Brian DeVault discuss ROI proposition and the key benefits that contribute. 

Outsourcing Metrics (ROI)

While cost is not the only way to identify ROI, it is a huge component of calculating if an investment is worthwhile for your business. According to Tiempo Development, you’ll typically measure ROI using both qualitative and quantitative metrics, which break down as follows:

  • Qualitative—Qualitative ROI describes the benefits of an investment that may be hard to quantify, yet still have an impact on the bottom line. 
  • Quantitative—Quantitative ROI refers to clear, measurable outcomes like revenue generated, time saved, and so on

If you are looking to calculate a financial ROI, you can use this easy equation: ROI = (Net Profit / Cost of Investment) x 100. 

NETRIO Enables Growth

NETRIO and other MSP’s prove their ROI by taking small day-to-day tasks off the table to allow for companies to see the bigger picture. Other ways to show ROI Propositions, might be things that are harder to measure. When deciding if this is a worthwhile and strategic decision, companies can consider reasons like focusing on their business and not having to worry about the operational or the day-to-day support that an MSP does really well. Little tasks like day-to-day help tickets, printer issues, new user setup and offboarding are all things that can take up a huge part of an employee’s bandwidth. These tasks need to be outsourced so you can free up your staff to have strategic discussions about how you move the business forward and digital transformation.

As you can see, creating an ROI Proposition for outsourcing MSP considers many other factors besides just a cost investment. NETRIO is laser-focused on being the best partner who enables the growth of your business. This blog post is part of NETRIO’s weekly Whiteboard Wednesday series. Follow along on Linkedin and YouTube each week as Brian and Mike discuss use cases, new technology, and trends.