Are you curious about the initial investment required to launch a thriving IT outsourcing firm? Understanding the precise startup costs, from technology infrastructure to talent acquisition, is paramount for a successful venture. Explore a comprehensive IT outsourcing financial model to accurately project your financial needs and potential profitability.
Startup Costs to Open a Business Idea
Understanding the initial investment required is a critical step in launching any new venture. This table outlines common startup expenses, providing a range from minimum to maximum anticipated costs to help in financial planning.
| # | Expense | Min | Max |
|---|---|---|---|
| 1 | Legal & Registration Fees: Costs for business permits, licenses, and legal setup. | $100 | $1,500 |
| 2 | Office/Retail Space: Rent deposit, first month's rent, and potential renovation costs. | $500 | $10,000 |
| 3 | Equipment & Technology: Purchase of necessary machinery, computers, and software. | $1,000 | $25,000 |
| 4 | Inventory/Supplies: Initial stock of goods or raw materials needed to begin operations. | $500 | $15,000 |
| 5 | Marketing & Advertising: Initial campaigns for brand awareness and customer acquisition. | $200 | $5,000 |
| 6 | Website Development: Creation of an online presence, including domain and hosting. | $50 | $3,000 |
| 7 | Working Capital: Funds to cover initial operating expenses before revenue is generated. | $2,000 | $20,000 |
| Total | $4,350 | $79,500 | |
How Much Does It Cost To Open IT Outsourcing Firm?
Starting an IT outsourcing firm generally requires an initial investment that can range from $15,000 to $100,000 for a small to medium-sized operation. This figure is highly dependent on the specific services offered, the target market, and the operational model chosen. For instance, a firm focusing on managed IT services might anticipate different expenditures compared to one specializing in custom software development or cloud migration. Understanding these variables is key to creating a realistic outsourcing company budget.
A substantial part of the initial capital for an IT outsourcing firm investment is allocated to essential software licenses and hardware. For a managed IT services provider, core tools like Remote Monitoring and Management (RMM) and Professional Services Automation (PSA) software can represent a significant upfront cost. First-year expenses for such critical software might range from $5,000 to $20,000. This investment is crucial for efficient service delivery and client management, forming a foundational element of the IT services startup investment.
The decision between renting physical office space or operating remotely has a dramatic impact on the cost to open an IT outsourcing business. A small office lease in a metropolitan area could add between $1,500 to $5,000 per month to overhead. Conversely, a remote-first model significantly reduces these infrastructure costs, allowing more capital to be directed towards technology, talent acquisition, or marketing. This choice directly influences the total initial capital needed for an IT outsourcing firm.
Industry reports suggest that technology startup funding for IT services can vary widely. Seed rounds for similar ventures often fall between $50,000 to $500,000. This broad range highlights the potential for higher investment when aiming for rapid scaling, comprehensive service offerings, or a significant market presence. For those looking into funding sources for new IT outsourcing businesses, understanding these benchmarks is vital for pitching to investors or lenders. As noted in analyses of IT outsourcing services in the US, the capital required can be substantial for market leaders.
Key Initial Expenses for IT Outsourcing Firms
- Software Licenses: Essential tools like RMM, PSA, and cybersecurity platforms can cost $5,000 - $20,000+ annually.
- Hardware: Computers, servers, networking equipment, and mobile devices for staff.
- Office Space (Optional): Rent, utilities, and setup for a physical location can add $1,500 - $5,000+ per month.
- Legal & Registration Fees: Business incorporation, permits, and licenses typically range from $500 - $2,000.
- Marketing & Sales: Website development, branding, initial advertising campaigns, and CRM software.
- Salaries: Covering initial staff, including IT technicians, sales, and administrative personnel.
How Much Capital Typically Needed Open IT Outsourcing Firm From Scratch?
Starting an IT outsourcing firm from scratch requires careful budgeting, with costs varying based on your business model. For a small to medium-sized business (SMB)-focused model, like that of 'Elevate IT Solutions', the initial capital typically needed ranges from $25,000 to $75,000. This investment covers essential operational expenses and foundational infrastructure necessary to begin offering services.
This initial capital injection is often designed to sustain the business for the first 3 to 6 months. During this critical first year, it covers vital expenses such as salaries for initial staff, rent for any necessary office space, and recurring software subscriptions, especially before consistent revenue streams are reliably established. This buffer ensures smooth operations during the early growth phase.
Estimating Startup Costs for an IT Outsourcing Company
- Lean Startup (Remote/Cloud-Focused): For a lean startup prioritizing remote work and cloud-based solutions, the estimated startup costs can begin as low as $15,000. This minimal budget primarily accounts for essential software licenses, essential hardware for key personnel, and initial marketing efforts to attract clients.
- Traditional Setup (Office Space & Team): A more traditional setup, incorporating physical office space and a small in-house team, will likely see initial capital requirements closer to $75,000 to $100,000. This includes costs for office fit-out, more extensive hardware purchases, and a larger initial marketing budget to establish a physical presence and brand recognition.
The overall IT outsourcing firm startup costs are influenced by several factors. Key initial expenses for an IT outsourcing company include technology infrastructure, which encompasses software and hardware, as well as marketing and sales budgets. Legal and registration fees are also a component, alongside office space and insurance requirements. Understanding these elements helps in creating a comprehensive business plan for an IT outsourcing venture.
For new IT outsourcing businesses, critical investments often lie in building a robust technology stack and securing necessary software. The cost to acquire essential software for an IT outsourcing business can range significantly depending on the chosen tools for remote management, ticketing systems, and cybersecurity. Budgeting for marketing when starting an IT outsourcing firm is also crucial to acquire initial clients and build a brand presence.
Can You Open IT Outsourcing Firm With Minimal Startup Costs?
Yes, it is entirely possible to launch an IT Outsourcing Firm with minimal startup costs. By strategically leveraging remote work models, embracing cloud-based solutions, and focusing on a narrow service offering, new ventures can significantly reduce initial investment. For example, a lean startup might begin operations with an estimated initial investment ranging from $5,000 to $15,000. This approach is particularly effective for new IT outsourcing businesses aiming to manage their initial capital efficiently.
The most cost-effective methods for establishing an IT outsourcing company often involve operating as a sole proprietorship or a Limited Liability Company (LLC) directly from a home office. This eliminates the need for expensive commercial real estate. Utilizing existing personal computer equipment and subscribing to essential cloud-based software tools on a monthly basis, rather than making large upfront purchases, further minimizes the capital required. This strategy aligns with the advice found in articles like 'How to Open IT Outsourcing Services in the US', which emphasizes lean operational setups.
Focusing on a Niche Service Reduces Technology Stack Expenses
- By concentrating on a specific service area, such as cybersecurity consulting or cloud migration, a new IT outsourcing company can drastically cut down on technology stack expenses.
- This focused approach avoids the immediate need for a broad and costly array of specialized software licenses and hardware.
- For instance, a firm specializing solely in cloud-based IT support might only require cloud management platforms and remote monitoring tools, costing significantly less than a full-service IT provider's infrastructure.
- This targeted investment strategy for an IT outsourcing startup ensures that capital is directed only towards essential technologies directly supporting the core service offering.
Bootstrapping serves as a highly viable funding source for new IT outsourcing businesses. This method involves founders reinvesting early profits back into the company to cover ongoing operational costs during the crucial first year. For example, if a new IT outsourcing business generates $10,000 in revenue in its first month, a significant portion can be allocated to salaries, software subscriptions, and marketing, thereby reducing the immediate need for external capital. This self-funded growth model allows for greater control and sustainability in the early stages of an IT outsourcing firm startup.
What Are The Essential Startup Costs For An It Outsourcing Firm?
Starting an IT outsourcing firm, like Elevate IT Solutions, involves several key initial investments to establish a solid foundation. The primary expenses revolve around legal necessities, essential software, necessary hardware, and a dedicated marketing budget to attract your first clients. Understanding these core components helps in accurately estimating the initial capital required to open an IT outsourcing business and ensures you're prepared for the financial realities of launching an IT services business.
Legal and registration fees are a critical first step. These costs cover the essentials for formally establishing your business entity. Typically, you can expect to spend anywhere from $500 to $3,000. This range generally includes fees for registering your business name, securing an Employer Identification Number (EIN) from the IRS, and drafting fundamental service agreements or client contracts that protect your business operations and define service level agreements.
Beyond legalities, core software licenses represent a significant, recurring expense. For a new IT outsourcing company, essential tools like Remote Monitoring and Management (RMM) platforms, Professional Services Automation (PSA) software, and robust cybersecurity suites are vital. Initial monthly subscriptions can range from $300 to $1,500. Over a year, this translates to an annual cost of $3,600 to $18,000 for a small firm, depending on the chosen feature sets and user counts, which is a key part of managed IT services overhead.
Initial hardware expenses are also a crucial consideration for your IT outsourcing firm startup costs. Depending on whether you plan for remote-only operations or require physical presence for client support, acquiring high-performance workstations for your team and essential networking equipment is necessary. For a new IT support company, these hardware costs might fall between $2,000 and $10,000. This investment is particularly important if your business model includes providing on-site support or managing client infrastructure directly.
Breakdown of Initial IT Outsourcing Firm Expenses
- Legal & Registration Fees: $500 - $3,000 (Business registration, EIN, basic contracts)
- Core Software Subscriptions (Annual): $3,600 - $18,000 (RMM, PSA, Cybersecurity tools)
- Initial Hardware: $2,000 - $10,000 (Workstations, networking equipment)
- Marketing & Sales Budget: Varies, but essential for client acquisition
A dedicated marketing and sales budget is indispensable for securing your first clients and building momentum. While the exact amount varies widely based on your go-to-market strategy, allocating funds for digital advertising, content creation, networking events, and sales collateral is a primary investment. This budget is critical for generating leads and differentiating your IT services startup investment in a competitive market. For a small IT outsourcing firm, planning a budget of at least $1,000 to $5,000 per month for initial marketing efforts is a prudent approach to gain traction.
What Are The Biggest Initial Expenses For An IT Outsourcing Company?
The most significant initial expenses for an IT outsourcing company like 'Elevate IT Solutions' typically revolve around establishing a robust technology infrastructure, recruiting skilled initial staff, and executing targeted marketing and sales efforts to secure early clients. These foundational investments are critical for setting up operations and building a market presence from day one. For instance, acquiring specialized software licenses or setting up secure server environments can represent a substantial portion of the early capital needed.
Technology infrastructure costs for a new IT outsourcing startup can easily range from $10,000 to $30,000 within the first year. This often includes essential components like server hardware if not fully cloud-based, specialized software licenses for remote monitoring and management (RMM), ticketing systems, and advanced cybersecurity solutions. For example, robust endpoint detection and response (EDR) software alone can cost several hundred dollars per user annually. Ensuring a reliable and secure technology stack is paramount for delivering consistent service quality.
Expenses related to hiring initial staff are also a major outlay. Even a small team of 1-2 key technical personnel can represent a significant commitment. For instance, average annual salaries for IT support specialists in the US during 2023-2024 typically fall between $50,000 and $70,000. This figure doesn't include benefits, recruitment costs, or potential onboarding and training expenses, which can further increase the upfront investment in human capital.
Marketing and Sales Budget for Client Acquisition
- Website development and professional design: $1,500 - $5,000
- Search Engine Optimization (SEO) for visibility: $500 - $2,000/month
- Targeted digital advertising campaigns (e.g., Google Ads, LinkedIn Ads): $1,000 - $5,000/month
- Content creation and initial marketing materials: $500 - $2,000
A dedicated marketing and sales budget, often requiring an initial allocation of $3,000 to $15,000, is crucial for acquiring the first clients and establishing market presence. This budget typically covers essential elements such as professional website development, search engine optimization (SEO) to ensure discoverability, and targeted advertising campaigns across platforms like Google Ads and LinkedIn. Building brand awareness and generating leads are vital for early revenue streams in the competitive IT outsourcing landscape.
Legal And Registration Fees For An It Outsourcing Firm
Setting up an IT outsourcing firm like Elevate IT Solutions involves essential legal and registration costs that form a crucial part of your initial capital. These expenses cover the fundamental steps to establish your business entity and ensure compliance from day one. Proper legal structuring protects your operations and builds credibility with clients.
Business Entity Formation Costs
The first step in establishing your IT outsourcing firm is forming a legal business entity. This process typically involves state filing fees. For instance, incorporating as a Limited Liability Company (LLC) or an S-Corporation can incur state filing fees ranging from $100 to $500, depending on the specific state where you register. Additionally, you might need to pay for a registered agent service, which can add $100 to $300 annually to your expenses.
Permits and Licenses for IT Services
Beyond entity formation, obtaining the necessary business licenses and permits is vital for operating legally. These requirements vary significantly based on your location (city, county, and state) and the specific IT services your firm will offer. Budget approximately $50 to $500 for these permits and licenses. Ensuring you have the correct documentation avoids potential fines and operational disruptions.
Initial Legal Consultation and Document Drafting
- Engaging legal counsel for initial consultations is a critical investment for any IT outsourcing business.
- These consultations help in drafting essential legal documents like client service agreements, comprehensive privacy policies, and non-disclosure agreements (NDAs).
- The cost for this essential legal groundwork can typically range from $1,000 to $2,500.
- Securing these documents ensures your business operates with robust legal protections and clear contractual terms, which is fundamental for client trust and operational integrity.
Software And Hardware Costs For A New It Outsourcing Company
When starting an IT outsourcing firm like Elevate IT Solutions, investing in the right software and hardware is crucial for delivering services, managing operations, and ensuring client data security. These initial technology expenditures form the backbone of your service delivery capabilities.
Essential Software for IT Outsourcing Startups
Core software for an IT outsourcing business includes Remote Monitoring and Management (RMM) tools to oversee client systems, Professional Services Automation (PSA) platforms for managing projects, clients, and billing, and robust cybersecurity suites. For a small firm, annual software subscriptions can range from approximately $5,000 to $25,000, depending on the chosen solutions and the number of endpoints managed. Examples of RMM tools include ConnectWise Automate and Kaseya VSA, while PSA platforms like ConnectWise Manage or Autotask are common.
Key Software Investments
- Remote Monitoring and Management (RMM) Tools: For proactive system oversight and maintenance.
- Professional Services Automation (PSA) Platforms: To streamline client management, ticketing, scheduling, and billing.
- Cybersecurity Suites: Including endpoint protection, firewalls, and vulnerability scanning software.
- Documentation and Knowledge Base Software: To store and access IT procedures and client-specific information.
- Remote Access Software: Secure tools for accessing client systems remotely.
Hardware Expenses for IT Outsourcing Businesses
Hardware is another significant initial investment. Technicians will require high-performance workstations, typically costing between $1,000 and $2,500 each. You’ll also need reliable network equipment, such as routers and switches, and potentially dedicated backup servers or Network Attached Storage (NAS) devices for data management and client backups. The total initial hardware outlay for a small IT outsourcing startup can range from $3,000 to $15,000.
Cloud Service Subscriptions and Their Impact
Ongoing costs are also influenced by cloud service subscriptions. These are vital for collaboration, data storage, and accessing specialized applications. Services like Microsoft 365 or Google Workspace for productivity and email, and cloud infrastructure credits from providers such as AWS or Azure for hosting or custom solutions, can add up. Expect these costs to be in the range of $100 to $500 per user, per month, significantly impacting the managed IT services overhead for a growing IT outsourcing firm.
Office Space And Infrastructure Costs For IT Outsourcing
The expense associated with office space and infrastructure for an IT outsourcing firm can dramatically change based on your operational model. Choosing a physical location versus a fully remote setup presents vastly different startup capital requirements. This is a critical factor in your overall IT outsourcing firm startup costs.
For businesses opting for a physical presence, renting office space is a significant initial investment. A small office accommodating 2-5 employees in a suburban locale might cost between $1,000 and $3,000 per month. However, securing similar space in a major metropolitan area could push that monthly rent to $3,000 to $8,000, not including additional utility expenses like electricity, water, and HVAC. This cost directly impacts your managed IT services overhead.
Beyond monthly rent, the initial setup for a physical office requires further capital. This includes purchasing essential furniture, installing reliable high-speed internet, and potentially minor renovations or leasehold improvements. These foundational expenses can range from $2,000 to $10,000 for an IT consulting firm setup. This is a key component of the initial capital IT outsourcing firm needs.
Remote vs. Physical Office Cost Comparison
- Physical Office (Small, Suburban): Monthly Rent: $1,000-$3,000; Initial Setup: $2,000-$10,000.
- Physical Office (Small, Major City): Monthly Rent: $3,000-$8,000+ (utilities extra); Initial Setup: $2,000-$10,000.
- Fully Remote Setup: High-Speed Internet: $50-$150/month; Co-working Space (occasional): $200-$500/month.
Conversely, establishing a fully remote IT outsourcing firm significantly reduces upfront costs. The primary infrastructure expense becomes reliable, high-speed internet access for each team member, typically costing between $50 and $150 per month. For occasional team collaboration or client meetings, investing in co-working space memberships can add another $200 to $500 per month per user, providing flexibility without the burden of long-term leases or extensive physical setup. This model drastically lowers the initial investment for a small IT outsourcing firm.
Marketing And Sales Budget For An IT Outsourcing Startup
Establishing a marketing and sales budget is essential for any IT outsourcing firm aiming to build brand recognition and attract its initial clientele. This investment is crucial for standing out in a competitive market and demonstrating value to potential clients, especially Small to Medium-sized Businesses (SMBs) looking for reliable IT management.
Website Development and SEO Costs
An initial online presence is vital for attracting SMBs seeking outsourced IT solutions. The cost for developing a professional website and implementing Search Engine Optimization (SEO) can range significantly, typically between $2,000 and $10,000. This investment ensures your IT outsourcing firm appears when potential clients search for services like 'managed IT services' or 'outsourced IT support.'
Digital Advertising for Lead Generation
To gain visibility and generate leads in competitive markets, digital advertising campaigns are often necessary. Budgeting for platforms like Google Ads or LinkedIn Ads might require an initial outlay of $500 to $2,000 per month. These campaigns target specific demographics and business needs, driving traffic to your website and generating qualified leads for your sales team.
Networking and Industry Engagement Expenses
Direct interaction with potential clients and partners remains a powerful strategy. Allocating funds for networking events, industry conferences, and memberships in local chambers of commerce can add $500 to $2,000 annually. These activities foster direct connections, build relationships, and provide opportunities to showcase your IT outsourcing firm's capabilities.
Key Marketing and Sales Investments for IT Outsourcing Startups
- Website Development & SEO: Est. $2,000 - $10,000 for online presence.
- Digital Advertising: Approx. $500 - $2,000/month for lead generation.
- Networking & Events: Budget $500 - $2,000 annually for industry engagement.
Insurance Requirements And Costs For IT Outsourcing Firms
Securing the right insurance is a critical step when starting an IT outsourcing firm like Elevate IT Solutions. It's not just a formality; it's a fundamental way to protect your business from potential financial ruin due to unforeseen events. This coverage mitigates risks inherent in providing technology services and shields your company from various liabilities. Understanding these requirements is essential for budgeting and ensuring operational continuity.
The specific types of insurance you'll need depend on the services offered and client contracts. For a new IT outsourcing firm, several key policies are typically considered essential. These policies are designed to cover different types of claims that could arise from your operations, client interactions, and data handling practices. Proper insurance ensures that your business can handle claims without jeopardizing its financial stability or reputation.
Essential Insurance Policies for IT Outsourcing Firms
- General Liability Insurance: This policy covers claims of bodily injury or property damage that might occur on your business premises or as a result of your operations. For a small firm, the estimated annual cost can range from $500 to $1,500.
- Professional Liability Insurance (Errors & Omissions - E&O): Crucial for IT service providers, this insurance protects against claims of negligence, errors, or mistakes in the services you deliver. The annual cost for this coverage typically falls between $1,000 and $3,000.
- Cyber Liability Insurance: Given the sensitive data IT outsourcing firms handle, this coverage is increasingly vital. It protects against costs associated with data breaches, cyberattacks, and other security incidents. Annual premiums can range from $1,000 to $2,500.
The cost of insurance for an IT outsourcing firm can vary based on several factors, including the size of your company, the types of services you provide, your claims history (if any), and the chosen coverage limits. For instance, firms dealing with highly sensitive client data, such as financial or healthcare information, may face higher premiums for cyber liability coverage. Similarly, the scope of your professional services directly impacts the risk profile considered by insurers for E&O policies.
When budgeting for your IT outsourcing startup expenses, accurately estimating insurance costs is paramount. These premiums are an ongoing operational cost, not just an initial investment. For example, a startup IT outsourcing business might allocate between $2,500 to $7,000 annually for these core insurance policies. It’s advisable to get quotes from multiple insurance providers to find the best coverage at a competitive price, ensuring you meet client requirements and protect your business effectively.
Operational Expenses During The First Year Of An IT Outsourcing Business
Launching an IT outsourcing firm like Elevate IT Solutions involves significant operational expenses during its crucial first year. These ongoing costs represent the largest part of the initial investment, directly impacting cash flow and profitability. Understanding these figures is vital for accurate business planning and securing adequate technology startup funding.
Key First-Year Operational Costs for IT Outsourcing Firms
The primary operational expenses for a new IT outsourcing firm are recurring costs essential for maintaining service delivery and business growth. These include staff salaries, software subscriptions, utility bills, and continuous marketing efforts.
Breakdown of Essential Operational Expenses
- Salaries: For a small team of 2-3 technical staff, annual salaries can range from $120,000 to $240,000, or approximately $10,000-$20,000 per month. This is often the most substantial managed IT services overhead.
- Software Subscriptions: Essential tools and platforms for IT management, support, and operations can cost between $500-$2,000 per month, totaling $6,000-$24,000 annually.
- Utilities: Monthly costs for electricity, water, and other office utilities typically fall between $100-$500.
- Internet Service: Reliable, high-speed internet is critical, with monthly expenses usually between $50-$150.
- Marketing and Sales: Consistent marketing efforts to acquire clients require an ongoing budget, often ranging from $500-$2,000 per month to ensure sustained business development.
Salaries: The Largest Portion of Initial IT Outsourcing Expenses
For a startup IT outsourcing firm, the cost to open an IT outsourcing business is heavily influenced by staffing. Even with a lean initial team of just two or three skilled technical employees, the annual salary commitment can be substantial. These costs typically range from $120,000 to $240,000 per year, which averages out to $10,000 to $20,000 monthly. This significant expenditure underscores the need for robust financial projections for a new IT outsourcing venture.
Software and Cloud Service Expenses
Maintaining efficient IT operations requires access to specialized software and cloud services. Recurring licenses and subscriptions for essential tools, such as remote monitoring and management (RMM) platforms, professional services automation (PSA) software, cybersecurity suites, and cloud hosting, can add up quickly. For an IT outsourcing firm, these costs typically range from $500 to $2,000 per month, amounting to an annual expenditure of $6,000 to $24,000. These technology stack expenses are critical for delivering quality IT managed services.
Ancillary Operational Costs for IT Outsourcing Startups
Beyond salaries and software, several other operational expenses contribute to the first-year budget of an IT outsourcing firm. These include essential utilities, reliable internet connectivity, and consistent marketing spend. Utilities can range from $100 to $500 per month, while robust internet service typically costs $50 to $150 per month. Furthermore, a continuous marketing budget, often between $500 and $2,000 per month, is necessary to attract and retain clients, ensuring sustained business development and client acquisition.
Training And Certification Costs For IT Outsourcing Employees
Investing in employee training and certification is crucial for an IT outsourcing firm like Elevate IT Solutions. It ensures your team remains proficient in the latest technologies and security practices, directly impacting service quality and client satisfaction. Staying current is not just about keeping up; it's about delivering enterprise-grade support that clients expect.
Industry-recognized certifications are a significant part of this investment. For example, exams from CompTIA, Microsoft Certified, Cisco, or AWS typically range from $200 to $500 per exam. When you factor in training materials or courses, the cost can climb to $500 to $2,000 per employee for each certification they obtain. This expenditure is a direct cost to your IT services startup investment.
Key Training and Certification Investments for IT Outsourcing Firms
- Core Technology Certifications: Essential for foundational IT skills (e.g., CompTIA A+, Network+).
- Vendor-Specific Certifications: Demonstrates expertise in particular platforms like Microsoft Azure, AWS, or Cisco networking.
- Specialized Skill Development: Training in high-demand areas such as cybersecurity (e.g., CISSP), cloud architecture, or data analytics.
- Ongoing Professional Development: Budgeting for continuous learning to keep staff updated on emerging threats and technologies.
Beyond initial certifications, ongoing professional development is vital. Specialized training in areas like advanced cybersecurity, specific cloud platforms (like Azure or AWS), or niche vendor technologies can add another layer of expense. A realistic annual budget for this ongoing learning might be between $1,000 to $3,000 per employee. This continuous investment ensures your team stays ahead of the curve, enabling Elevate IT Solutions to offer robust, secure, and cutting-edge IT management services, which is a key differentiator for any IT outsourcing firm startup costs.