PROS & CONS: Managed IT Service vs. Hourly IT Service

As an owner of a small company, you have probably entertained the thought of outsourcing some aspect of your business. The benefits of outsourcing seemed obvious as numerous industries take it as the answer to cutting costs and increasing profit margins. Many small business do not have the budget and necessary resources to implement the IT systems and services they need in-house and outsourcing is their best option. But how do you exactly choose the right type of IT services for your business? When it comes to selecting an outsourced IT provider, is it more efficient and cost-effective to take on a Managed IT Service over an Hourly IT Service?

Let us show you how managed IT and hourly IT service affect your business and your profitability.

Managed IT Services

Managed IT service typically charges a monthly flat rate fee and in return the IT support provider fixes any problem that arise during the contract. The advantage of this type of service is it allows you to take full advantage of the amount of service you receive without increasing the cost. Your IT provider can address a range of technological issues irrespective of size and complexity.

Managed IT services also increase the efficiency of your IT support provider. Your IT provider wants to take advantage of their earning potential, so they do not waste time. Time is money for them and for your company and they want to do the work right to avoid redo on the same issue, request or project. They want to finish work timely and efficiently.

Managed IT services best provide experienced and dedicated IT technicians who are acquainted with your organization, system, and its procedures. Monitoring your system and your network and keeping a watchful eye for potential security threats is their accountability.

Managed IT service guarantees to reduce downtime. Every time an issue arise, you can call them anytime and as much as you want without costing you to pay them more. This also makes them more familiar with your system ultimately, once they are familiar with your system they can work quicker and identify problems easier thus decreasing downtime.

They also decrease downtime due to technical repairs. Since they are closely monitoring your system and your network regularly, they have the opportunity to correct small issues before it turns to major problems.

Hourly IT Services

Hourly IT service or break/fix services is where you call an expert to solve your IT issues as they arise. It may seem like a great choice and it looks like you are getting a better deal initially, but adopting a break/fix philosophy comes with a variety of hitches which in the long run can harm your business. These are:

  • Hourly rate give no encouragement to complete work faster. More hours means more income to IT provider;
  • You have no dedicated IT technician to handle your organization. Every time an issue arise, the next available technician will be the one to fix your issue which also means you will see a fresh face each time. And instead of fixing your problem right away, he first has to learn your information, system, network and your procedures which causes downtime.
  • There is also no qualified IT professional updating and regularly monitoring your system. This means you’re IT Security is at risk because no one is updating and securing your network leaving you vulnerable to hackers, malware, ransomware, virus, data breach, and more.

The hourly rate service might seem cost-effective at first since it negates the monthly fee. However, in the long run, it rarely turns out to be cost-effective as the potential of a large bill to resolve an issue arises due to lack of monitoring and maintenance. Your business is also likely to lose money from clients as your systems experience downtime.

Outsourcing your IT is not a challenge but seeking a competent and dedicated IT provider who will cater your business needs can be. When deciding between managed and hourly IT service, you should consider how much your business’ survival relies upon your IT framework and how much an IT issue will cost your business in downtime. Can you bear to put off support and risk a major IT disaster? Or are you willing to prevent this and get a service that will monitor and maintain your system? Only you know what your budget can handle. Bear in mind, it is not wasting time and money to pay a monthly fee if it will handle your IT headaches and minimizes productivity disruptions and free you to focus on what you do best: growing your business.

Motionwave Technology offers Centralized IT Service and Support to help your business deal with the complexities of IT related problem. For assistance, please consult our group at Motionwave Technologies or call us today on 1300 337 984 and speak to one of our IT experts.

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Henry Chow
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