The managed service model for a modern MSP company has become established in the IT support market. This type of setup operates on the concept of providing technical maintenance and support on a proactive basis to commercial clients. Unfortunately, numerous IT consultants are still using the outdated break-fix model. This involves providing patches and repairs when the client experiences a problem. If you are still using the break-fix support model, here are the reasons why you should consider replacing this solution with managed services:
Compromised Customer Productivity
If your IT business provides break-fix assistance, you will not be seen as an entity which adds value to the company. The customer will call when the network has failed or has begun to show significant lag. In simple terms, the productivity of the pertinent commercial client will be already compromised. They will have already lost revenue due to the problem. Therefore, even when you perform a fix, your company will simply be restoring things to normal, not making improvements.
Undue Poor Reputation
As a break-fix IT support provider, you can gain a poor reputation unfairly. In general, your customer will call for assistance when bad things are occurring in the business network. Over time, they will associate your presence with the failure of the IT systems. They will only view you as a necessary but expensive evil. When using a managed services model, there are no direct costs associated with your presence in the company. Therefore, you will be viewed as a business partner.
The break-fix model yields an inconsistent income for your business. This can be detrimental to the growth of your company in the long-run. In addition, you cannot efficiently plan for the future because of the unpredictable cash flow. Simply speaking, your incoming finances will depend on the number of clients that you will have during the time period. During some months, the earnings will be high due to the availability of IT repair and maintenance opportunities. In other periods, the earnings will be minimal.
When you choose a managed service model for your MSP company, you will have long-term consistency. Your commercial customers will pay a monthly fee for proactive maintenance of their network. Therefore, whether they experience numerous network problems or their network is functioning optimally, your income will be the same. This is beneficial in helping you plan for the future and ensure the consistent growth of your company.
Unexpected High Repair Expenses
When your client is experiencing multiple problems with their network, you will need to charge them a high amount of money. After all, the break-fix model is charged by the hour. Most clients will not be happy to provide a check for the large invoice presented. In addition, they might choose to delay your payments, causing you unexpected distress. With the managed services, the payment is not a common problem because it is a subscription based plan. The clients will be prepared to meet the financial requirements for the predictable sum. They will also be more at ease with payments because they know that there will be no sudden, unexpectedly high charges.
When your customers have no IT problems, they will become complacent in their situation. The period will give them a false sense of security. As a result, the company will remain unprotected from unexpected threats like viruses and hacks. Also, they will be unaware of the problems which have yet to manifest. You should note that the more your customers get used to the quietness, the less willing they will be to consider managed services. Basically, they will assume that all is well since there are no underlying problems. You will find it difficult to get out of the break and fix cycle.
By replacing your break-fix support model, you will avoid the outlined IT services problems. In addition, your MSP company will be able to provide commercial clients with excellent and consistent network performance by adopting the managed services model.