For small to medium-sized business owners and managers in the greater Toronto area, understanding the various IT service models available is crucial for making informed decisions. Let's delve into the two primary pricing and service models offered by IT companies, noting that some companies might offer a combination of these models.
- Time and Materials (Hourly) Model:
Often referred to as “break-fix” services in the industry, this model involves the IT company stepping in to fix issues as they arise, rather than performing regular maintenance. The cost is usually charged on an hourly basis, which can vary depending on the complexity of the problem and the provider chosen. For example, resolving ransomware issues may require more skilled technicians compared to simpler tasks like fixing printer issues.
Under this model, you might be able to negotiate lower rates by purchasing a block of hours in advance. The scope of work can range from addressing specific problems (like slow WiFi or email issues) to larger projects such as software upgrades, implementing cybersecurity measures, or coordinating office relocations. Some providers also offer staff augmentation services under this model.
A related service is that of value-added reseller (VAR) services, where IT projects are handled for organizations with internal IT departments. These services include the resale of hardware and software, along with installation and setup. However, note that the trend in recent years shows a decrease in VARs, as many are transitioning to managed IT service models.
- Managed IT Services (MSP):
In this model, the IT services company essentially becomes your outsourced IT department, handling all aspects of your IT infrastructure. This includes troubleshooting, setting up and supporting hardware and software for both on-site and remote employees, managing network security, data backup and recovery, providing help desk support, and maintaining the health and security of your network.
A good MSP not only manages your current IT needs but also assists in planning and budgeting for future IT projects, ensuring compliance with data protection laws and meeting cyber insurance standards.
The main advantage of the break-fix model is its pay-as-you-go structure, offering flexibility and ease of changing providers if necessary. It's particularly cost-effective for very small businesses with simple IT needs. However, for midsize businesses, especially those handling sensitive data, the break-fix model can be less economical and efficient in the long run, with potential for higher costs, longer downtime, and lower prioritization by IT companies.
Managed IT Services, on the other hand, provide a proactive approach to IT management, with predictable budgeting and prioritization of service. If you're experiencing ongoing IT issues and inefficiencies, it might be time to consider transitioning to a managed IT service model.
For businesses in the Toronto area looking to explore these options, we offer a free initial consultation to discuss your specific needs and concerns. Schedule a session with one of our senior advisors by calling us or clicking here. This consultation is an opportunity to address your questions and compare our services to ensure you find the best IT solution for your business.