In order to keep up with the evolving technology, IT companies are increasingly shifting from a break-fix model to an MSP business offering managed services. This is mainly because the break-fix model’s reputation has been deteriorating day by day and, as a consequence, registering low returns. Making the switch, however, comes with a few challenges. Some companies encounter clients who resist the switch, preferring to remain under the cheaper break-fix model. Secondly, making a staff that was used to the break-fix model to switch to managed services could be a challenge.
Nevertheless, moving from break-fix to managed services can be very easy if done the right way. As an MSP business owner, you need to strike a balance between improving the services you offer your clients and getting high business returns. For this reason, you must make sure that every small challenge is ironed out and that your staff and customers are on the same page as you. This article points out some of the practices you should undertake to ensure a smooth transition from the break-fix model to managed services.
1. Come Up With a Proper Pricing Model
The break-fix model is cheaper for clients as compared to the MSP model. As pointed out earlier, your customers will complain, in most cases, to you about MSP pricing once you make the switch. Some of them will want you to charge them on an hourly basis for managed services just like in the break-fix model. You should remember that you are in business to make money, and you must be very careful not to succumb to your clients’ demands. If you quote low prices at the initial stages, you will win more customers, but your business will run out of cash in the long term. Get the pricing right and stick to it.
2. Make Sure That You Get It Right When Choosing the Services to Offer
Before embarking on the transition process, it’s good to make sure that you have a clear understanding of the services your company will offer. It is common to find IT companies opting to add a host of services to their profiles after making the switch. As good as it sounds, adding services that your business wasn’t offering previously may not be the best thing to do. This is because, without experience, some management services can become a headache to maintain in future. It is important to stick to the IT services that your company offered to break-fix clients, only that you upgrade them to managed services.
3. Train Your Staff before Making the Switch
As stated earlier, making the switch does not necessarily mean that your team has done so. Since your engineers are used to fixing problems, it becomes hard for them to adapt to management services. Therefore, it is important to first cultivate an MSP culture amongst your employees before you make a move. Make the engineers learn and perfect on how to monitor IT systems remotely so that when the switch happens, they will quickly fit in.
4. Have a Clear Operations Plan
Switching to managed services doesn’t mean that you will abruptly bring break-fix services to a halt. Even when offering managed services, there will be a few loyal clients who will insist on break-fix. Besides that, it will take time before your IT company picks up on it. You will have to come up with a plan on how to handle your conservative clients, as well as how to fund operations before your new managed services get up and running.
5. Marketing Is Key
In whatever you do, you must always remember that your clientele is your most valuable asset. As such, you need to educate your clients on the benefits associated with MSPs over break-fix. To spice it up, you can develop some campaign methods that will convince the customers that you are headed in the right direction.
If effectively implemented, these five points will bring success to your MSP business. By adhering to an agreed-upon pricing model, deciding on the services you will offer, properly training your staff about the changes, having a clear operations plan, and effective marketing, your transition to break-fix to managed services will be as smooth as a baby’s skin.
