Before you can accurately compare the fees, services, and deliverables of one I.T. services company to another, you need to understand the 3 predominant pricing and service models most of these companies offer. Some companies offer a blend of all 3, while others are strict about offering only one service plan. The 3 predominant service models are:

Time and Materials (Hourly)

In the industry, we call this “break-fix” services. Essentially, you pay an agreed-upon hourly rate for a technician to “fix” your problem when something “breaks.” The price you pay will vary depending on the provider you choose and the complexity of the problem, but most will be in

the $150 to $250 range.
Under this model, you might be able to negotiate a discount based on buying a block of hours. The scope of work ranges from simply resolving a specific problem (like fixing slow WiFi or resolving an e-mail problem) to encompassing a large project like a software upgrade, implementing cyber protections or even an office move. Some companies will offer staff augmentation and placement under this model as well.

 

Similar to this are value added reseller services. VARs typically do I.T. projects for organizations that have internal I.T. departments. The term “vlue added” reseller is based on the fact that they resell hardware (PCs, firewalls, servers, etc.) and software, along with the “value added” services of installation, setup and configuration. VARs typically service larger organizations with internal I.T. departments. A trend that has been gaining ground over the last decade is that fewer VARs exist, as many have moved to the managed I.T. services model.

 

Managed I.T. Services (MSP, or “Managed Services Provider”)

This is a model where the I.T. services company, called an MSP, takes on the role of your fully outsourced I.T. “infrastructure.” That includes things such as:

  • Troubleshooting I.T. problems.
  • Setting up and supporting PCs, tablets, Macs and workstations for new and existing employees, both on-site and remote.
  • Installing and setting up applications such as Microsoft 365, Google Workspace, SharePoint, etc.
  • Setting up and managing the security of your network, devices and data to protect against hackers, ransomware and viruses.
  • Backing up your data and assisting in recovering it in the event of a disaster.
  • Providing a help desk and support team to assist employees with I.T. problems.
  • Setting up and supporting your phone system.
  • Monitoring and maintaining the overall health, speed, performance and security of your computer network on a daily basis.

In addition to managing your I.T., a good MSP will provide you with an I.T. Roadmap and budget for necessary projects to further secure your network and improve the stability and availability of critical applications, as well as ensure that your I.T. systems are compliant with various data protection laws (HIPAA, FTC Safeguards, PCI, etc.) and that your cyber protections meet the standards on any cyber insurance plan that you have.

These projects are not included in the routine, day-to-day maintenance and are typically planned out in advance, based on the growth of your organization, your risk tolerance, operations, unique business model, etc.

 

Vendor-Supplied I.T. Services

Many software companies and vendors will offer pared-down I.T. support for their customers in the form of a help desk or remote support for an additional fee.

However, these are typically scaled-back services, limited to troubleshooting their specific software application and NOT your entire computer network and all the applications and devices connected to it. If your problem resides outside of their specific software or the server it’s hosted on, they can’t and won’t help you and will often refer you to “your I.T. department.”

While it’s often a good idea to buy some basic-level support package with a critical software application you use to run your business (often referred to as a “line-of-business” application), this is not sufficient to provide the full I.T. services, cybersecurity, backup and employee (end-user) support most businesses need.

As a small or midsize business looking to outsource your I.T. support, you are most likely to end up having to choose between two service models: the managed services and “break-fix” models. Therefore, let’s dive into the pros and cons of these two options, and then the typical fee structure for both.