In some companies, however, it is evident that IT is a day-to-day frustration and is holding the company back. Whatever the situation, it’s possible to take IT up to a new level where the technology experience and the results it provides have real business value.
In this article you will get the information that you need to choose the IT support option that will help you to find and extract business value from IT. To do this, we’ll guide you through a thought process to which we have identified three main objectives:
1. Introduction
2. Where are you now with IT?
3. IT Solutions Categories
4. Common Perceptions of Internal and Outsourced IT
5. The Top 10 Results SMBs Want From IT
6. How IT Solutions Measure Up
7. Option #1: Break/Fix
8. Option #2: Managed Services
9. Option #3: Internal IT
10. There is another option!
11. Outsourced IT Department
12. IT As a Business Function that Helps You Meet Your Goals
13. Change the Conversation
14. Next Steps
Whenever you are getting ready to chart a new course, it’s useful to take a good look at your starting point. As you review your current IT situation, you might be able to relate to one or more of the statements in the sidebar on this page.
That last statement in the list reflects quite a different perspective compared to the preceding six statements. If IT is just fine, then that’s great, but there’s probably a reason why you feel the need to revisit your options. It’s possible that if you start to ask some questions around your company, you might uncover issues that just haven’t been visible to you. You also might just have a nagging feeling that IT could be doing more for your business.
It’s normal to feel some discomfort with the thought of change. As you start to consider what direction you should go with IT support, you know that it’s going to take your time and energy. You know that your decision is going to impact every part of your business, because all of your business processes rely on technology. You know that your decision is going to impact the people in your company, some for better and some for worse. It’s not your desire to make extra work or possibly stir up conflict, but the consequences of doing nothing can have negative financial impacts on the business.
Doing Nothing About Your IT Support Problems is a Decision
After reviewing your current situation including the consequences of not making a change, let’s go through the IT options that you have to choose from. A logical place to start is to compare and contrast resourcing internal IT vs outsourcing IT services.
There are different approaches within these two broad categories that are going to affect the results you should expect, but we’ll get to that in a later section. A question to keep in mind throughout this exploration of IT solutions is –
How will the path we take with IT support affect the focus of our business?
Let’s first look at these two categories and the implications that each will have on the focus of your business.
We will devote the resources needed to develop the right processes, and the right people to get the results we want.
We will find the experts who can do what needs to be done to get the results we want.
It’s a good bet that you acknowledge that these nine results would benefit your company, but let’s go a step further and envision the business value that you would derive from being able to get these results:
Improve productivity and efficiency
Decrease labor costs
Minimize interruptions
Increase customer satisfaction
Decrease risk
Less stress and worry, so you can focus on your business
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Now that you can identify the kind of results that you want to get from IT, and you recognize some ways that these results can provide value to your business, it’s time to look at different IT solutions and see how they may or may not be able to deliver. The most common IT options we’ll examine are:
This term is used to describe an approach that focuses resources on reacting when things don’t go well.
The term is what is says – something breaks and you call the IT company to fix it. You might get some advice but no help with planning.
You are charged time and materials for the work that is provided. IT costs will be unpredictable and there is no way to budget. An issue could be a few hundred dollars or several thousand. A general rule of thumb is that for every $1 you spend in break/fix support, you have lost another $2 in overall employee productivity.
Every time there is a break, you have an interruption in your business operations. Response time can be slow. There is never time to address the root cause of problems so issues go on and on. People struggle every day to do their jobs. Inconsistencies may cause duplication of data. People create their own workarounds which can cause other problems including security vulnerabilities.
The more issues you have, the more money the IT provider or department gets from you. If you have a break/fix mentality in an internal IT department, the result can be the same in that the more issues you have, the more you spend, and prevention cannot be a priority.
No |
Fast response timeNo. There is a low ratio of technical people to customers or computer users. Staffing is based on utilization of their people, not the needs of their customers. |
No |
IT understands usNo. They only understand the one issue you are having and only when you call for help, and they do not understand your business |
Maybe |
Cost effectiveMaybe. But only if you don’t have any issues or too many issues. For an organization for 10 computers, this could be the best option. |
No |
Predictable budgetNo. Nothing is being done to prevent issues, so you have no idea what is going to pop up next |
No |
Plan for the futureNo. Nothing beyond the obvious needs to replace failed hardware and outdated software. |
No |
Comprehensive ExpertiseProbably not. The very nature of break/fix creates a jack-of-all-trades culture where they know a little about a lot, creating limitations |
Maybe |
Just-right capacityMaybe. You aren't going to have too much and you aren't going to have over capacity, but you might experience under capacity as the break/fix company is fighting other fires. |
No |
IT innovationNo. There isn't time or expertise available to work on initiatives to improve the business with technology. |
Maybe |
SecurityMaybe. Because they aren't working proactively, you'll probably have to tell them what you want implemented. |
No |
IT is off my plateNo. You still own it even when you make a call to get help. Your staff still own it, too, as they take their time or a colleague’s time to solve their own problems before making a call, or as a result of issues that never get solved. |
You and your staff will have to continually devote time and energy away from your core business in order to handle IT needs.
This term is used to describe an approach that is recognizably more proactive compared to Break/Fix.
Patching, monitoring, antivirus management, backup, and a set amount of hours or tasks that will be completed each month. Sometimes that includes an unlimited amount of hours.
Fixed fees for the monthly items but no budgeting above and beyond that monthly fee. You could still have major issue could hit with a large price tag that you weren’t expecting.
Now you are paying a monthly fee and you may not have as many issues because some prevention is now included in your monthly services, but there are gaps in how IT contributes to the business. You feel like you’re paying more and still not getting a lot.
Many companies that label their IT services as “managed” actually follow a cookie cutter approach that includes set deliverables that are focused on managing the technology hardware and software within a fixed monthly fee. Additionally, you may find that managed services are just a fraction of the total business offerings, which can have implications for the quality of service delivery.
Yes |
Fast response timeYes. You should expect it because you’re paying a monthly fee to receive an expected level of response. |
Yes |
IT understands usYes. They should understand your technology and the business at a surface level |
Yes |
Cost effectiveYes. If you are truly getting fully managed services with unlimited support, and instead of a block of time that they call managed services |
Yes & No |
Predictable budgetYes and no. There should be planning for known costs that are related to updates in hardware and software, but maybe not planning for the business |
No |
Plan for the futureNo. Nothing beyond the obvious needs to replace failed hardware and outdated software. |
No |
Comprehensive expertiseNo. You’re just getting the support that’s included in the set of monthly deliverables |
Yes |
Just-right capacityYes. Services and fees are based upon the size of your business. |
Yes and No |
IT innovationYes and No. Innovation around the latest and greatest technology but not for innovative ways to use technology to help your business. |
Maybe |
SecurityMaybe. The set of cookie cutter deliverables may include some layers of technical security that result from the tools they use, but often there are still holes as they may not have the depth of expertise or time needed to put up the best cyber defense. |
Yes & No |
IT is off my plateYou shouldn’t have to keep up with the day-to-day activities and keeping the network up and running, but you still have responsibility for how you leverage technology to help the business |
The results are better than break/fix but now you will be paying more and there is still a disconnect with the overall results that you might be expecting. Moreover, you still own the pieces that could drive the most value for your business.
This term is used to describe IT that is resourced internally but is often supplemented by outside services and vendors.
Management of network infrastructure, day-to-day maintenance and support, management of outside services and vendors, and anything else that gets put on their plate.
You have all the costs that are associated with a full time employee with a salary, benefits and coverage when they can’t be at work. You should also expect to cover ongoing training initiatives to keep staff up to date with skills and knowledge, and the costs associated with tools they need to do their job and keep your network running.
Staff appreciate having an on-site person to go to for help but that person or small team can easily get overwhelmed with support resulting in neglect of maintenance and improvement initiatives.
Internal IT works best for companies that are large enough to fill all of the roles that are needed, and have the resources to divert to developing expertise that is not part of their core business. This starts to make sense for organizations that can support a team of about a dozen IT professionals, and they have about 500 employees
Yes & No |
Fast response timeYes and no. They are always on-site but their response time will slow as the organization grows. |
Yes & No |
IT understands usYes and no. They understand your technology and may understand the business at a surface level. |
Yes & No |
Cost effectiveYes and no. Typically, internal IT support is either over staffed or under staffed and includes costs to various vendors as well. |
No |
Predictable budgetNo. The costs of the internal person is, but when you add external vendors, costs climb quickly. |
No |
Plan for the futureNo. They often do not have the capability until there is a full-fledged team. Additionally, the IT staff may not have expertise in creating strategy. |
No |
Comprehensive expertiseNo. Not until there is a full IT team. |
No |
Just-right capacityNever. Capacity is always over or under, and gaps open up whenever there is staff turnover. |
Yes & No |
IT innovationYes and no. Innovation around the latest and greatest technology, but often not for innovative ways to use technology to help the business. |
Maybe |
SecurityMaybe. It depends on the expertise of the IT team, and if they devote the time and resources that are needed to keep up with changing technology. |
Yes & No |
IT is off my plateYes and no. It depends upon who is overseeing IT and who is providing technology innovation. |
You commit to diverting resources away from the focus of your core business to developing and maintaining an IT team that won’t get all the results you want.
None of the three options we just analyzed are going to provide you with all of the results that add up to the best IT experience.
There has to be another option, and there is. It's an --
This term is used to describe an approach that provides a fully functioning IT department.
The outsourced IT department handles the day-to-day issues, but focuses on proactively implementing best practices to prevent issues from happening in the first place. They also bring the capability to leverage technology in a meaningful way that ultimately increases the revenue per employee.
Fixed fees cover unlimited user support as well as ongoing proactive initiatives. The IT provider collaborates to create and implement IT strategy that creates predictable costs for IT investment in the future.
The proactive nature of this model assures that the technology framework on which business processes are built is predictable and reliable. Staff experience less disruptions but when they do have a problem, support is readily available. A dedicated vCIO meets collaborates with management to create IT strategy that aligns with business goals.
The focus of the IT company’s business is on providing an outsourced IT department. They leverage expertise, tools and knowledge that are customized for each client’s unique needs and circumstances.
Yes |
Fast response timeYes. The need to respond reactively to issues is minimized. |
Yes |
IT understands usYes. From both technology and in-depth business standpoints. |
Yes |
Cost effectiveYes. IT is focused on the area that has the highest ROI which means not only reducing issues to keep staff productive, but leveraging IT in innovative ways to improve business outcomes. |
Yes |
Predictable budgetYes. Fixed monthly fees for proactive and reactive services, and an IT roadmap lets you know what to expect in the future |
Yes |
Plan for the futureYes. IT strategy maps out where you are going and tactics to get there. |
Yes |
Comprehensive expertiseYes. All the roles are filled |
Yes |
Just-right capacityYes. It will scale with your business |
Yes |
IT InnovationYes. They will bring you ideas and expound on the ones that you have. |
Yes |
SecurityYes. They have experienced staff and have allocated resources towards the tools needed to implement the most effective technical security tactics. |
Yes |
IT is off my plateYes. You focus on what you do best. |
IT becomes a key business function that allows your people to focus on what they do best, while enabling your business goals.
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It takes a shift in mindset to go from viewing IT as a piece of overhead to seeing it as a critical business function. It takes another shift to recognize that IT could be a business function that enables your business goals.
All you need to do is to look to your business plan to pull out some possible ways that technology can enable your business. You might find unrealized business goals there, or goals that you didn’t think were achievable through leveraging IT. You might have some goals that just don’t have a clear path to success.
Think about the way that you may have evaluated and purchased or resourced IT support in the past. Did your evaluation process revolve around questions about deliverables? If it did, it’s no wonder. That’s the way that many IT companies sell their services. Just look at a few IT provider websites and see what you find – cloud services, backup, mobile device management, network maintenance, hardware and software, etc. The questions that you ask when you are making your purchase decision based on products and services is not going to lead you to better IT results.
In order to uncover the value that the IT provider can bring to your business, you have to ask different questions. You have to ask, “What results can I expect from your services.” If the person on the other end on the question goes into a deep technical discussion in their answer, that’s a red flag. If all they want to talk about is their cool tools and technical stuff, changes are they’re missing it on the business end.
The other question you should ask is, “What can IT do to enable my business?” And that is going to give you an entirely different conversation – one that should be about where you are today, and where you want to go tomorrow.
Choosing an IT solution is less about fixing the technology and more about improving your experience, and that drives the kind of value that you’ll receive.
Thriveon provides businesses in Minnesota with an outsourced IT department along with business level IT guidance that helps companies leverage technology to get better results and achieve their business goals. Read some client testimonials and case studies on our website. If you are ready to explore how our proven process can use technology to move business forward, please call us at 855-767-2571 or give us your contact info and we'll get back to you right away to arrange a time to get a conversation started.