Hand Shake Agreement
When an IT services company charges hourly for their work, they have no incentive to accomplish tasks in a timely or even competent manner. Nor are they compelled to innovate or formulate preventive measures. If it breaks, then cha-ching!

On the other hand, if an IT services company is paid to keep everything working, then it behooves them to remain proactive. If they don’t, then they’re not doing their prescribed job, which means dismissal and termination of the agreement = no $$$$. “You’re fired.”

These are the basic tenets of the managed IT services model. When a proactive and preventive agreement is in place, then it is in the mutual benefit of both parties that the Internet is up, the computers are running, data is safely in place, the workers are productive, and the company is compliant with regulatory mandates.

When all is up and running in a stable manner, then costs also become stable. The agreement between the IT services company and their client determines the expected monthly compensation amount. And the agreement defines the set of services provided on behalf of the client. It is understood by both parties that the same payment amount will transpire on a consistent basis, which means no surprises; the IT services company can rely upon payment and the client company can expect to pay the monthly remittance as an ongoing cost of doing business – for stable conditions.

And it’s not just about the network and the machines. The people using the network need ongoing support. They need to resolve problems that arise preventing them from accomplishing the tasks at hand. And they need improved skills to attain their long-term goals, so training is an integral component of the managed IT services support environment. One-on-one coaching is invaluable and providing a responsive helpdesk system is crucial to the holistic health of the system.

The managed services contract is nothing more than a simple agreement. Both parties pledge to perform for their mutual benefit.

Scott Abbotts | https://resolute-it.com | https://office365techguy.com