Managed Services vs Time and Material
IT Consulting companies generally offer two types of relationships with their customers. Managed Services is the most comprehensive type. The most common is Time and Material. There are others but, for the purposes of this post, we will look at these two specifically.
Managed Services type arrangements with IT providers are very popular with businesses. Under a managed services contract, the IT Provider will charge a monthly fee. This is usually based on the quantity of equipment the IT Provider will be taking care of. Under this contract, the IT Provider will perform preventative maintenance. Basically, to prevent issues before they become big problems for the client. Generally, the IT provider will fix issues while charging the customer only for the materials needed. This keeps IT expenses for the customer steady, without large fluctuations. This also keeps the IT side of the business running smoothly at all times.
A Time and Materials relationship with an IT provider is almost the opposite of a Managed Services contract. Under this relationship the IT provider will charge for time and materials to fix an issue when the customer reports one. Commonly referred to as a ‘Break/Fix’ model, the IT company fixes an issue when the customer reports that it is broken. Under this model small issues that are not noticed may become big issues when they reveal themselves. This is a direct result of a lack of preventative maintenance being performed. Also, break/fix types of billing usually happen in clusters, where there are periods without charges, followed by periods of significant charges. These large fluctuation in expenses can be problematic for many businesses.
There are a few IT Consulting companies, like YourPersonalHelpDesk.com, that customize hybrid billing plans for their customers. These custom plans utilize the best of both of these types of billing, in an effort to make sure it is the best possible plan to benefit each particular business. In our case, we take great pride in making sure that we can offer a more comprehensive set of services, under the best pricing model, so that we can truly fit our services to each individual business, and it’s unique needs.