Have You Looked at Your IT Invoices Lately

Information technology is critical to most modern businesses today. Most communication is done over VOIP phones, email, and web conferencing, and accounting operations rely heavily on software. It’s hard to keep your computers and networks running without help from an internal IT staff or a third-party IT service provider to help you keep your data backed up and your computers and networks running smoothly. They can also identify tasks you can automate to execute business processes more efficiently and cost-effectively.

The level of businessIT servicesyou receive and how much you pay for them can vary from vendor to vendor. For this reason, it makes sense to review your invoices periodically to see what you are paying to ensure you get the best “bang for the buck.”

Do you know what you are paying each month for IT services?

What is the Service Model?

First things first — is it a Time and Materials or Managed IT Services model?

IT Services Models – Time & Materials

With IT service providers following a Time and Materials (T&M) approach, you only call them in to perform a specific service when needed. You might have them install new software or a new network or repair a network or other hardware issue. It could also be to get help recovering data caused by a system failure. Depending on the service performed, they may charge from $150 to $250 per hour. Charges could start with that amount just to have themcome on-site and a given issue could take hours to solve.

With this model, charges can vary quite a bit from month to month. There can also be a higher risk of security intrusions, equipment failures, and data loss due to lack of ongoing maintenance and security protocols.

IT Service Model – Managed IT Services

Following a Managed IT Services model, IT services charge a fixed monthly fee and typically deliver the best value in the long run. They take full responsibility for maintaining your IT systems and keeping them secure.

For this level of service, you pay a fixed monthly fee for a defined package of IT services. These services will typically include:

  • Security
    • Protection from cybersecurity threats
  • Networking and Infrastructure Support
    • Maintenance and monitoring of computer hardware and networks
  • Disaster Recovery
    • Restoration of data following equipment failures
  • Cloud Services
    • Moving file servers/storage to the cloud
    • Migration to Software as a Service (SAAS) applications
  • Technical Support
    • Phone-based and online help with your technical issues.

What Other Services Might be Included in a Managed IT Services Contract?

Other services that may be part of many managed IT services packages include:

  • Hardware and software procurement
    • This offloads you from the work of comparison shopping, meeting system requirements, ordering
  • Standards compliance support
    • Helps ensure compliance with IT-related requirements for HIPAA, FINRA, CCPA, GDPR, PCI-DSS, etc.
  • Strategic IT planning and budgeting
    • Provides support with planningfor the long term and definition of detailed budgets for future projects

How is a Managed IT Service Provider’s Monthly Fixed Fee Determined?

The way many managed IT services providers determine the monthly fixed fee they charge can be complicated. Others, like GSDSolutions, may have much simpler models that just look at the number of employees and servers.

Are You Paying Too Much for IT Services?

One way to determine whether you are paying too much for IT is to check online reviews, or ask your business associates. You can also interview a few IT service providers in your area to find out what services they include and what they charge for them.

At GSDSolutions, we offer a comprehensive package of business IT services at a compelling value — all with a high level of service. Contact us today to see if you are getting the best value from your current provider!


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