Should I hire a NetSuite Administrator?
If you have recently implemented NetSuite, you may well be now wondering if you need to hire a NetSuite Administrator? This may not have been something that you considered prior to selecting an ERP so it would involve an added cost to budget which is never good news.
This post aims to outline your options when it comes to NetSuite administration as well as outlining a business case for using Coras Consulting as NetSuite managed service provider.
Why was an systems admin not required when using Quickbooks or Xero?
These accounting ledgers are a lot easier to use meaning someone in your finance team was more than likely able to act as an administrator. NetSuite is a lot more complicated which will make it difficult for someone in your finance team to upskill to a level where they can be a full NetSuite administrator and also fulfil their BAU responsibilities.
What NetSuite admin tasks can finance take on?
Whether you want to call it a superuser or a NetSuite admin we do recommend that someone in finance takes ownership of some NetSuite admin tasks. Some of these will be no different to tasks they were performing in erstwhile accounting ledgers.
The degree to which someone in finance can take on admin tasks will also depend on factors such as how complicated your NetSuite instance is, number of users etc. Some admin tasks that a finance super-user may be able to take on include:
- Manging master data for items, accounts, segments etc
- Creating basic to mid-level saved searches and reports
- Loading data into the system
- Arranging training for new joiners
- Be the first line of support for finance system users
What NetSuite admin tasks can IT take on?
In addition to finance, someone in your IT team is a logical solution for managing some tasks that would fall under a NetSuite admin such as:
- Managing the licensing arrangement with NetSuite
- Having oversight of integrations
- Managing user access and roles
What tasks does that leave?
If you are able to divide some of the above tasks between finance and IT, it puts you in a good position to avoid hiring a systems administrator. This will particularly be the case if your organisation is relatively small, without lots of changes and complex procedures. Here are some of the tasks that you may need to hire a NetSuite admin for:
- Deliver training to end users
- Managing integrations with other systems
- Creating custom fields, forms, workflows and scripts
- Advanced report and saved search creation
- Investigating and advising on advanced issues.
If your finance and IT teams are capable of taking on the tasks we have outlined above, the remaining workload is not likely to justify a full NetSuite admin. If this is not the case it creates a bigger role for a NetSuite admin. Obviously larger organisations with more users and more complexity will have a bigger requirement for a NetSuite admin. In addition, you may have other finance systems that the systems administrator needs to be responsible for.
| NetSuite Inhouse v Outsourced Admin | ||
| £ | ||
| NS Admin | 65,000 | |
| Pension & Er NIC | 10,920 | |
| Hiring Cost | 9,750 | |
| Other Costs training etc | 5,000 | |
| Total Cost of NetSuite Admin | 90,670 | |
| Working Days | 220 | |
| Cost per day | 412 | |
| Cost per hour | 59 | |
| Outsourced Cost per Hour | 80 | |
Does it make sense to outsource NetSuite admin tasks?
Lots of businesses outsource part of their NetSuite admin roles. This is especially the case if you are a small organisation and there is not enough work to justify a full time NetSuite admin. Large organisations contract consultancies to sit alongside their NetSuite admin and provide advanced solutions and advice on less common system elements.
The advantages to outsourcing some of the more advanced NetSuite admin tasks are:
- You will get access to a team of people who can provide a full range of NetSuite services from basic to advanced. An in-house NetSuite admin will not have the breadth of knowledge and experience with all modules and some more complex customisations.
- An outsourced service provider can provide service uninterrupted by annual or sick leave.
- You will get project management resource who will help with task delivery
- You do not need to commit to the cost of a full-time employee
- You can get resolutions for post go live NetSuite Optimisation and allow for the cost to taper off as the business gets familiar with the system and takes on more responsibility
The disadvantages to outsourcing NetSuite admin are:
- Some clients complain that they don’t get a sufficient level of service, particularly from larger outsourced service providers.
- Outsourcoured service providers will likely cost more than in house employees
How does the cost of outsourced NetSuite admin compare to in-house?
The current range for NetSuite admin salaries is between £50,000 and £80,000. Taking the average of £65,000 and adding on employers NI, pension, recruitment costs and other employment costs brings the cost of hiring a NetSuite admin to approximately £90,000.
Using the cost of an in-house NetSuite admin at £90,000 above and deducting 7 weeks for sick leave + holidays the hourly cost of an in-house resource is £56 per hour. Coras provide NetSuite managed services from £80 per hour. Given the benefits outlined above this provides a strong business case to go outsource your NetSuite admin.
The first step will be to set out the scope of what services it makes sense for us to provide versus what tasks your existing team should be able to handle internally. Get in touch for a free conversation with one of our consultants.
