IT Support

June 10, 2020

When To Use Independent Contractors for Business IT

Posted by Deborah Frazier in INSI Articles

Using Independent Contractors for Business IT

Independent Contractors (IC) can be useful for a number of IT projects, maintenance, and support.  However, they should not be the primary means of IT support for a company that is dependent on their technology.  A good analogy of this is a football team.   We all remember that legendary high school football game when our team was down by one touchdown.  When all seemed lost, the center snapped the perfect hike, the offensive line protected the quarterback from certain annihilation, and the running back distracted two defensive players.  Suddenly, the quarterback threw the winning pass and the kicker made the final extra point that took the team to victory.  Then, with just one point in the lead, the defense held the opposing team to prevent a comeback!  Victory!

In the same way, your business network needs a team to protect it and ensure your staff stays productive.  After all, your IT holds all the intellectual data of your business.  Every email, phone call, and document is a window into your business.  That is why it is so important to protect it from hackers, hardware failures, software glitches, and end-user mistakes.  Yet, one person does not have all it takes to protect and care for your network.  Similar to an individual trying to play all positions on the football field, they lack the people, resources, and technology to protect your network. That is why you need a mature Managed Service Provider.

Concerns of Using an Independent Contractor for IT Support in a Thriving Business

Unfortunately, Independent Contractors do not have the tools, resources, or technology to deliver the same level of support that a mature Managed Service Provider can.  Some examples of this include:

  1. Unpredictable Cost – Independent Contractors offer ad hoc services which are “pay-as-you-go.”  Due to the many issues associated with ad hoc, the risk is high and the cost can get out of hand quickly.
  2. Single Point of Failure – Sickness, vacation, full-time job offers, and even death can be devastating to your business IT if you use an independent contractor.
  3. Limited Knowledge – While you can find independent contractors who are extremely talented, there is not one IT person who knows everything that is needed to fully support a network.  Further, they typically don’t keep up on new certifications.  This results in the IC learning on your time.
  4. Lack of Documentation – It can take years to make an IT support operation successful.  For this reason, IC’s lack the robust ticketing systems, asset tagging, and business process to track the issues and assets.
  5. Low Availability – In short, one person can not be in two places at one time.  Consequently, the IC will put its more profitable clients first.
  6. Lack of Insurance – The vast majority of IC’s do not have business insurance.
  7. Insufficient Monitoring – Monitoring is essential for catching issues early on.  Yet, robust monitoring tools are not affordable for IC’s.

It’s important to ask questions surrounding these concerns when considering any outside individual for ongoing IT support.

When To Use an IC for Business IT

There are indeed times when it makes sense to use an independent contractor.  For example, it is great for companies whose needs are less than 1/4th of an hour per person per month for support.  Or, if a company has less than 5 computers.  In these cases, the companies are not highly dependent on their IT to justify daily support.  Rather their needs are sporadic and an IC is more appropriate.

Another time independent contractors are good for business is when their specific skill sets can help with strategic consulting or temporary projects.  This typically makes sense when you have an internal IT department and need outside expertise on a temporary basis.

When NOT to Use an IC for Business IT

However, when you need more than 1/4th of an hour of support per person per month, an IC won’t do.  In these cases, you are highly dependent on your IT and are likely a target of hackers.  You need the breadth/depth of experience, technology tools, and resources only a Managed Service Provider can provide.  With a mature Managed Service Provider you will get:

  1. Documentation
  2. Monitoring of Network and Desktops
  3. Tracking of Key Performance Indicators (KPI) and Continual Improvement
  4. Asset Tracking
  5. Live Network Operations Center
  6. Breadth and Depth of Multiple Engineers and Various Levels of Expertise
  7. High Availability

Trust INSI For All Your Business IT Needs!

A better alternative to Independent Contractors is INSI’s Managed Services or Customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Independent Contractors” and INSIs Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

May 27, 2020

Types of IT Support Models at a Glance

Posted by Deborah Frazier in INSI Articles

Support Models at a Glance

Know how to compare IT support companies.  This article summarizes the INSI  Types of IT Support Models Series based on the book: IT Outsourcing Secrets.  Previously, we took a closer look at Ad Hoc, Blocks of Time, Use-it-Or-Lose-It, Budget, and Flat Rate programs.  However, in this article, we are going to step back and view the models holistically.  Further, we are going to explain how the Customized IT Support Program addresses the flaws you see in the IT support landscape.

High Level IT Support Model Comparison

IT Support Comparison

It is important to look at two things when comparing IT support models: Risk and IT Maturity.

  1. Risk is based on the overall cost
  2. IT Maturity Scale is based on the efficiencies of the organization

The two must be combined to help determine which model is best for you.  See below:

Ad Hoc is High Risk and Low on the IT Maturity Scale:

An independent contractor who sells Ad Hoc services does not usually charge that much because he/she does not have much overhead.  In addition, they haven’t invested in people, processes, or technology to perform proper documentation, track your assets issues, and monitor.

In other words, they lack efficiencies.  This often results in multiple visits, multiple breaks, and security risks which cause the cost to spiral out of control.

Blocks of Time is High Risk and Low on the IT Maturity Scale:

These companies usually have a handful of IT people and technology tools to provide a certain level of efficiency.  However, the risk is high because of the liability on the unused hours.  Therefore, they cannot staff appropriately because they do not know when the hours will be called in by the client.

Further, the business does go on as usual and expenses must be paid.  So, by the time the client calls in the hours, they may not have to respond to the client’s needs.   Without a doubt, this is a high risk for the client and the IT support provider.

Use-it-Or-Lose-it is High Risk and Medium on the IT Maturity Scale:

Use-it-Or-Lose-it firms usually invest in people, processes, and technology, but the cost burden is still heavily placed on the client.  Hence, if the client does not use all their hours for the month they lose it.  If they go over their hours they pay a hefty overage fee.

Budget is High Risk and High on the IT Maturity Scale: 

Budget IT support companies do invest highly in processes, people, and technology.  However, the cost risk is extremely high to the client and the invoices are highly unpredictable.

Fixed-Rate is Low Risk and Medium to High on the IT Maturity Scale:

Also known as price per seat or price per device, Fixed Rate companies absorb all the cost on devices that are under contract.  This makes the risk extremely low.  In addition, they need to invest in people, processes, and technology to run efficiently and make a profit.

However, not all Fixed Rate companies are equal and you must ask the right questions to know where they are on the IT maturity scale.  Further, the client is paying the same high rates for entry-level tickets as they are for advanced support issues.

INSI Customized IT™ Low on Risk and High on IT Maturity

The INSI Customized IT™ support program absorbs all the cost with a monthly flat rate, lowers the cost on 80% of the IT support cost, and invests heavily in people, processes, and technology.

The INSI Customized IT™ plan was designed with the other IT support plans in mind.  It addresses the flaws within the IT support industry and offers real solutions.

How Does Customized IT Compare to Other IT Support Models?

There are several advantages to the INSI Customized IT™  program, including:

  • Low-Risk Flat Fee – INSI will absorb all the risk on their INSI Customized IT™ and Managed Support programs with a fixed monthly fee.
  • Delivers Better Quality – INSI’s tiered support structure ensures our clients are receiving the right level of support for each issue they call in.  As an example, Tier 3 engineers are only assigned Tier 3 tickets.  For this reason, they are much better at solving the client’s advanced issues.  Further, our entry-level engineers are only assigned entry-level tickets. Therefore, they do not find themselves in over their head and learning on the client’s time.
  • One Back to Pat – The initial engineer takes complete ownership of the ticket.  If they do not know how to resolve the ticket within 15 minutes, a higher level engineer will fix the problem in front of them.  As a result, this speeds up the time to resolution for the client, while also increasing the skill set of the engineer.  Subsequently, the next time your engineer gets the same issue, they will know how to resolve it.
  • Lowers 80% of the IT Support Cost – All INSI support programs incorporate true helpdesk rates on tiers 1 & 2.  Consequently, this lowers the cost of 80% of the tickets to entry-level rates.
  • Right-Sized for the Client – Since each service is broken out into its own service, the client can pick and choose the exact services they want in their IT support program.  Now that’s true customization!

Do You Want To Learn More About the Different Types of IT Support Models?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

May 20, 2020

5 Things You Need to Know About the “Fixed Rate” IT Support Plans!

Posted by Deborah Frazier in INSI Articles

What is a “Fixed Rate” IT Support Model?

A “Fixed Rate” IT support program provides an unlimited number of tickets per month for all the equipment listed under the scope of the contract.  This plan is the most commonly used IT support plan among all Managed Service Providers (MSP). Primarily because it is easy to bill and it’s easy for the client to understand.  However, it is not as cut and dry as one might think.  As you can see below, there are many caveats to the program:

 1. The “Fixed Rate” Monthly Cost IS Predictable

The number one reason why clients love the “Fixed Rate” IT Support Plan is a low risk.  Subsequently, the client does not need to manage the number of end-user calls or worry about unforeseen labor costs with their network equipment.  Hence, everything is covered.

 2. The IT Support Provider Bears the Cost Risk

Unlike Adhoc, Blocks-of-Time, Use-it-Or-Lose-it, or the Budget IT Support models, the Fixed-Rate plan puts the full burden of cost on the provider.  For example, the provider would be on the hook to clean up a virus that hit all the computers at once.  In other words, it includes unlimited calls.  Obviously, clients LOVE this!

 3. The “Fixed Rate” Cost Only Covers What is Under Scope

Unfortunately, unlimited is not exactly “unlimited”.  Hence, the provider will only cover the assets that are under contract.  For example, let’s say the manager brings in and sets up a new computer.  Unless that computer is added to the scope, all labor is billed separately at a high hourly rate.  In fact, all new computers and server installs are considered “projects” and will be billed at high hourly rates.  Only then is it added to your support agreement and the monthly cost goes up.

Further, unless told otherwise, the cost never drops off.  For example, you will continue to pay the same cost if your company downsizes and you no longer need certain computers.  This may seem obvious to you and me, but you would be surprised at the number of companies that forget to renegotiate their contract at the time of renewal.  In other words, they just let it roll over into a new contract under the same terms.

4. The “Fixed Rate” Hourly Rates Are Substantially Higher Than Other IT Support Models

This is the part that seems to be a real eye-opener for most people, so pay close attention.

That “per seat” or “per device” cost is not how it appears.  Most MSPs will charge $75 to $175 per seat per month.  Maybe more for servers.  To the unknown decision-maker, this seems fairly reasonable.  However, these service providers are not going to lose money.  In fact, they need to make sure there is a healthy cushion for unlimited calls and unforeseen events.  Let’s take a look more closely.

MSPs determine their rates by the industry averages.  For example, industry metrics show that the average computer takes 30 minutes per month to support.  Therefore, they can take care of 2 computers per month in an hour.  Not only does the mean that $75 per seat is actually equivalent to $150 per hour, but $175 per seat is equivalent to $350 per hour.  Ouch!

It should also be noted that 80% of your IT support calls are entry-level calls.  That means that you are paying $150 – $350 per hour for entry-level calls!  (Insert shock emoji here!)  Furthermore, project and add-on rates are charged even higher than that.

5. Not All “Fixed Rate” IT Support Companies Are the Same

As with all things, no two MSPs are identical.  Watch out for the following:

    • IT Maturity Level – The IT Maturity Level is more important than any other factor when considering an IT support provider.  Most importantly, it measures the efficiencies of the people, processes, and technologies.
    • Additional Fees – Many MSPs will charge a travel fee (trip charge), onsite fee, or after-hours fee.
    • Terms – Terms range from month-to-month all the way up to 10-years.  Many will automatically rollover if the client does not give notice in a specific period of time.  Therefore, it is always important to understand the terms.

A Better Alternative

A better alternative to “Fixed Fee” IT services, is INSI’s Managed Services or Customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Fixed Rate” and INSI’s Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

May 13, 2020

Why You Shouldn’t Get the “Budget” IT Support Plan!

Posted by Deborah Frazier in INSI Articles

What is the “Budget” IT Support Plan?

The “Budget” is an IT support program with a base package plus a reserve of IT support dollars.  Subsequently, the budget reserve can be used for IT support, hosting, professional services, managed security, custom programming, and unified communications.

Positive Aspects of the “Budget” Program

Companies that offer this program usually rank high on the IT maturity scale.  Further, many clients like the idea of rollover “hours” and only paying for what they use.  Last, they like a one-stop-shop for all their IT support needs.

Negative Aspect of the “Budget Program 

Unfortunately, the billing and invoicing of this plan are extremely complex.  In addition, it puts the full risk of the cost on the client.  Subsequently, there are two parts to this plan: the base package and the budget reserve.

  • Base Package

The base package covers all the things mentioned in the IT Maturity article. While it is obvious these companies invest heavily in people, processes, and technology, it’s the clients who absorb all the cost. For example, their base package covers network monitoring and Block and Tackle Security.  However, you will pay a hefty difference if you want your desktops monitored as well.  As a result, the base package could cost as much as a third of the total monthly commitment.

  • Budget Reserve

Now you get into the really tricky part: the budget reserve.  For instance, these types of companies claim that the client can apply any services against the IT budget.  In addition, the unused budget will roll over for an additional two months.  However, the reality is there is rarely any budget left over.  Let’s see how below:

    • Basics of  Budget Reserve Calculation

Simply put, the average budget is based on 30 minutes per workstation per month and 1 hour per server per month.  As an example, 100 computers would require 50 hours.   Next, they calculate the 50 hours with a combined industry average of 10 % onsite rate and 90% remote rate.  Consequently, every time a client calls in, that time is applied against the budget.  Since the calculations are based on the average industry usage, the likelihood of having any leftover budget is slim.

    • Every Level and Service Has a Different Cost

However, the Budget plan doesn’t stop there.  In fact, those are just helpdesk rates.  Hence, everything above helpdesk level is at a much higher rate.  Therefore, the additional work eats away at your budget much faster!

In addition, the client can also apply other service options toward their budget. For example, the client may apply hosting, telecom, programming, or managed security toward their budget.  This guarantees they will run over their allotted budget since the budget is based on the calls, not additional options.

Why Companies Choose the Budget Program

The client wants superior service at a set amount per month.  In fact, many believe they can control their cost and stay under budget.  However, industry metrics do not lie.  It will take an average of 30 minutes per workstation and 1 hour per server to support a client environment whose users are dependent on their servers.  If a company chooses the budget plan, they will need to prepare for these realities.

A Better Alternative

A better alternative to “Flat Fee” IT services, is INSI’s Managed services or Customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Budget” IT Model and INSI’s Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

 

May 6, 2020

Pros & Cons to the “Use-It-Or-Lose-It” IT Support Model

Posted by Deborah Frazier in INSI Articles

What is the “Use-It-or-Lose-It” IT Support Model?

The “Use-It-or-Lose-It” IT Support Model provides a fixed fee for a certain number of hours.  Subsequently, the hours are determined at 1/4 of an hour per workstation per month for a stable environment. Alternatively, the model can also be determined at 1/2 of an hour per workstation per month for an environment where the end-users are heavy computer users.  In addition, the client is charged an overage fee if they exceed the number of hours.

Positive Aspects About This Program

The “Use-It-or-Lose-It” IT Support Program is more sophisticated than the Adhoc or blocks of time I previously wrote about.  In fact, I really like this program.  Subsequently, the program is simple, reliable, straightforward, and honest.   Most importantly, these companies typically document the network, monitor the network infrastructure, and have staff on hand to respond to issues in a timely manner.

Negative Aspects About the Program

The only thing negative about this program is that the client bears the risk of cost.  For example, if they go over their numbers, they have to pay a hefty overage fee.  This can get quite expensive in the event of a server crash.  Similarly, if they don’t use all of their hours, they lose them.

Why Companies Choose the “Use-It-or-Lose-It” IT Support Program

SMBs like this program because it is stable and easy to manage.  In my experience, IT support companies who offer this service are typically small.  For this reason, it is ideal for a company with no strong growth plans, has a stable network, and does not have an overly complex environment.

A Better Alternative

A better alternative to “Use-It-Or-Lose-It” IT services, is INSI’s managed services or customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Use-It-or-Lose-It” and INSI’s Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

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