While the cost of IT services matters in business decision-making, it should not be the main deciding factor. Instead, business leaders must make informed decisions and choose the right IT service provider that won't give them a headache in the future.
But too often, our fellow CEOs and CFOs don't know what to ask or look for in an IT company. This makes them put too much weight on the quote without considering the factors that matter the most.
So while everyone wants to get the cheapest IT service provider out there, here are the reasons why you should not do the same:
1. Cheap IT Service providers are understaffed
Cheap IT often means a skeleton crew. If they lose one of their IT supports, they're quickly overwhelmed and won't be able to support your business efficiently and effectively leaving your operations and security at risk.
2. Low-Cost Staff
Bargain-basement rates attract budget talent. Since their salary offers are at the lower end of the pay scale, they cannot compete with other IT companies to get the best and most competent talents. Keeping your network and data secure and operational should be delivered by highly competent professionals.
3. No Dedicated Support
Cheap IT Service providers may be a one-man army with no team. Since their focus is divided among other clients, you may not get the dedicated IT support that your business needs.
4. Living on the Edge
A cheap IT service provider may mean they're hanging by a thread. One or two bad months, and they could vanish into thin air, leaving your business security and operations in limbo.
5. Lack of Operational Maturity
Operational maturity means having the right people and processes to deliver top-notch services. If an IT service provider is so cheap, this is something that they do not have.
So, how much is “too much” and what are the signs that an IT Service provider is underpriced?
According to Service Leadership, the leading financial benchmarking organization in the IT services industry, the average “per user” fee for managed IT services is $205.07 to $249.73. Those IT companies with a below-average operational maturity level charge $146.08 to $157.49 per “user” (or employee using a computer or device they support).
So, if someone tosses a $120-a-user quote your way, pause for a second. How can they charge almost 50% less than the IT companies? Surely, corners are being cut, cheap labor is in play, and crucial security and compliance services are likely non-existent.
IT Service Provider Near Greater Philadelphia
If you're looking for an IT service provider, you must ask the right questions. Download our FREE executive guide to know what types of questions you should be asking your managed services provider.
This report discusses what to look for to get exactly what you need without unnecessary extras, hidden fees, and bloated contracts. But most importantly, it will show you how to get the right support you want to lower your risk and eliminate the frustration of dealing with a less-than-competent IT company.
Trust us, your sanity will thank you!