Last time, we talked about the general concept of Managed Services. We compared it to Time-based billing.
Now we’ll discuss IT Managed Services.
Traditional break-fix IT support firms will bill by the hour regardless of what they are asked to do.
IT Managed Services firms bill by the service. Most often, they include a bundle of needed services in an agreement for a flat monthly fee.
It doesn’t matter how long it takes to manage and support these services – they Just Happen.
In IT Managed Services, the IT firm aligns with the client’s goals at all times.
Services that are typically included in a service agreement include:
Top-tier service providers add:
IT Managed Services are good for the client because they connect the IT service provider’s profitability to efficiency. These providers deliver reliable and efficient services at a fixed cost.
(The graph above shows the stabilizing effect on cost that IT Managed Services provides over a period of time.)