IT is a critical component of any company’s success. Why? Because companies rely on IT to help them remain competitive. As a result, IT spending is on the rise. According to Gartner , worldwide IT spending will reach $3.8 trillion in 2014. To maintain a competitive edge, information technology service providers (ITSPs), managed services providers (MSPs) and other IT businesses must strike a balance when it comes to cost.
Smaller IT resellers support and service one of the largest and most diverse sections of the business world, namely small and medium sized businesses. The client base encompasses micro businesses – for whom IT is simply a means to an end – all the way up to companies that retain their own in-house IT person or even a team of support staff. From the coffee shop that needs the till to be always on and protected from viruses to the school with a remit to keep children protected while using the Internet as an education tool all the way up to the local branch of a major bank that needs to stay connected to HQ client service needs vary tremendously.
In my last blog post, I wrote about some IT Solution Providers making the move from Break/Fix to Managed Services by using the Block-Time billing method, in which clients are billed up front for a block of time which is then decreased each time you do work for them. The benefit of block-time billing to your IT business is reduced administration, no more waiting around for unpaid invoices from your clients, and the ability to capture and bill for those small queries that clients are always asking of you, yet you’d never bill for individually.