After carefully reviewing the market and comparing potential IT providers to your current managed service provider, you’re almost ready to sign a new IT support contract. But before putting pen to paper, it’s crucial to thoroughly examine the details beyond just pricing.
Here are three things to confirm with the new provider before
After carefully reviewing the market and comparing potential IT providers to your current managed service provider, you’re almost ready to sign a new IT support contract. But before putting pen to paper, it’s crucial to thoroughly examine the details beyond just pricing.
Here are three things to confirm with the new provider before finalizing your contract:
1. Contract Length & Termination
This is a critical consideration because each IT provider approaches contract terms differently. The most common contract length is typically 36 months. IT services and solutions tend to be “sticky” and challenging to switch, as changing providers requires significant work. For instance, IT providers often use specialized software like RMM (remote monitoring and management) to deliver quick fixes, monitor devices, and provide remote support. Transitioning to a new provider means replacing this software across all devices, which is labor-intensive and time-consuming.
Some providers offer shorter contracts or no contracts at all, but this carries risks like unpredictable price increases. While a short-term agreement may seem appealing, it could lead to overpaying in the long run.
2. Who’s Liable If You Get Hacked?
Liability is a sensitive issue, especially for those who have experienced hacks before. Managed service providers usually shift the risk to the businesses they serve, which is common practice. To illustrate, you wouldn’t expect a fire extinguisher company to cover damages after a fire simply because you bought their products. Similarly, IT providers aren’t typically liable for breaches. They should work according to best security practices and offer tools and solutions to help reduce your risk.
3. Intellectual Property
IT providers often assist clients in automating manual processes, which takes time and resources to develop and implement. Depending on the specific process, automation could provide a significant competitive advantage. So, it’s important to clarify who owns the rights to these automated processes after implementation. This is a key negotiation point that can affect your strategic advantage.
When navigating these potential contract pitfalls, negotiation plays a pivotal role. Finding a new IT provider involves more than just assessing their technology, capabilities, and pricing. Consider the people behind the company—are they aligned with your values and vision? Trust your instincts because relationships matter, in both life and business.
