Many countries’ economies are facing uncertain times. Growth in China has slowed, the US is facing a fiscal cliff that could ruin the US economy and any relient economies associated with it. It’s in these uncertain times that many companies are doing more with less and when it comes to IT, this means budget cuts. When these need to be made, many companies will look at cutting service contracts, something that may come back to haunt them in the future.
5 common issues businesses face when they allow IT service contracts to lapse:
- Increased response and resolution time. The way almost every company works is they provide support to paying customers before they provide support to others. If your systems bought from a vendor three years ago crash, and you didn’t renew the support contract, you will be facing prolonged downtime and potentially high replacement costs which could be detrimental to your business.
- Poor implementation of updates. One of the main jobs of the IT provider is to ensure that all systems are up-to-date, or at the very least are running the same version of software as other systems. Without this valuable service, it is almost guaranteed that users will be running different software versions which could pose security and integration risks.
- Lack of diagnostic and analysis tools. IT providers often utilize robust diagnostic and analysis tools that can help determine what issues are causing problems. On the other end, many IT service companies are set up to be proactive, and will usually look for and fix potential problems. This business model minimizes downtime, which can be hard to do without a costly internal IT department.
- Reactive support. The proactive nature of many IT service providers really helps, but when you don’t renew contracts, your service will likely go from proactive to reactive. Meaning you likely won’t know anything’s wrong until it really goes wrong. So instead of systems being down for an hour for monthly maintenance, they could be down up to a week or longer. This is something no business wants.
- Increased hardware overhead. With a good service provider, your systems will last longer. This equates to lower hardware overhead over a longer period. Without them, companies will often see higher overhead due to having to replace equipment more often.
Yes, we agree, it can be hard to justify paying what seems like a high monthly fee to keep your systems running, especially in this difficult financial climate. However, the potential of both lost revenue from crashed systems and replacement costs often make IT service providers an integral and valuable part of your technical systems.
If you’re facing budget cuts, why not talk to us, we may be able to work with you to develop a plan that meets both your needs and budget.
Published with permission from TechAdvisory.org. Source.