To effectively compare the costs, services, and deliverables of different IT support companies, it is essential to grasp the two main pricing and service models these firms typically provide. As a small business owner, it is critical to understand these pricing models to make an informed decision and avoid unnecessary costs.
While many companies may combine elements of both models, others may strictly adhere to one specific service plan. The two most common models are:
1. Time and Materials IT Support (Hourly Billing)
This model is often referred to as “break-fix” services, as IT companies are engaged to “fix” issues only when they arise, rather than providing ongoing maintenance and support. Charges are generally based on an hourly rate, which can fluctuate depending on the service provider and the complexity of the issue at hand. For instance, resolving a ransomware attack requires a more skilled technician compared to addressing a minor printer issue.
Under this pricing structure, there may be opportunities to negotiate discounts by purchasing a block of hours. The range of services can vary from addressing specific issues, such as improving slow WiFi or troubleshooting email problems, to managing larger projects like software upgrades, implementing cybersecurity measures, or facilitating an office relocation. Some companies may also offer staff augmentation and placement services within this framework.
2. Managed Services Provider (MSP) Model
In this model, the IT services company, known as an MSP, assumes the role of your complete outsourced IT department. They manage all aspects of your IT infrastructure, including:
- Providing help desk support for troubleshooting IT issues.
- Setting up and maintaining PCs, tablets, and workstations for both new and existing employees, on-site or remote.
- Installing and configuring applications such as Microsoft 365, Google Workspace, and SharePoint.
- Establishing and overseeing the security of your network, devices, and data to safeguard against cyber threats, including hackers, ransomware, and viruses.
- Backing up your data and assisting with recovery in the event of a disaster.
- Offering a help desk and support team to assist employees with IT-related issues. – Establishing and maintaining your phone system.
- Regularly monitoring and ensuring the overall health, speed, performance, and security of your computer network.
In addition to overseeing your IT needs, a competent Managed Service Provider (MSP) will deliver an IT roadmap and budget for essential projects aimed at enhancing your network’s security and improving the stability and availability of critical applications. They will also ensure that your IT systems comply with various data protection regulations (such as HIPAA, FTC Safeguards, PCI, etc.) and that your cybersecurity measures align with the requirements of any cyber insurance policy you hold.
The Pros and Cons of Break-Fix Services
The benefit of break-fix services is that you only incur costs for IT support when necessary, without being tied to a monthly or multi-year contract. This option may be ideal for micro-businesses with a small number of employees and straightforward IT needs, especially if they do not frequently encounter issues or manage sensitive data.
However, there are several drawbacks to break-fix services, particularly for larger businesses that handle sensitive data. The five main disadvantages include:
- You are more susceptible to problems. A break-fix model is a reactive approach, meaning the IT team will fix the problem when it arises. On the other hand, a managed services provider works on preventing issues from occurring in the first place.
- Budgeting for IT services becomes challenging. Break-fix can become quite costly when multiple issues arise. You may end up spending more overtime if you frequently require urgent “emergency” support.
- You may not be prioritized by the IT company. IT firms typically give precedence to their contract-managed clients over those requiring break-fix services. This means that you may experience delays in receiving assistance, and it may take longer to diagnose and resolve issues since they are not familiar with your setup.
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