Choosing to outsource your IT is only step one in a long and complex decision-making process. After that comes the hard work – which provider will you choose? How many services do you actually need? Should you choose local or offshore?
Perhaps one of the biggest questions you’ll need to ask is how you would like these services delivered. There are several options, and each one can have an enormous impact on your business. So what are IT business engagement models? And which should you choose?
What Is an IT Engagement Model?
An IT business partner engagement model (also known simply as an “IT engagement model”) defines how your company interacts with an MSP (managed service provider). It outlines:
- The scope of services you receive
- The level of responsibility assigned to your provider
- The means through which support is delivered
- How outcomes are measured
Even if you choose an excellent provider, the wrong engagement model creates accountability gaps, unclear expectations, and financial waste. To ensure that your MSP is able to provide the level of service you require, it’s crucial to lay out your expectations early and clearly. The engagement model helps you accomplish this.
Common Customer Engagement Models for IT Services
Break-Fix Support
Break-fix support is the traditional reactive model that many businesses will already be familiar with. Something goes wrong, you contact your provider, and they fix the issue. You are then billed for the time and resources used.
This engagement model may suit very small businesses with low IT needs, as it provides the short-term support necessary to get back on your feet without any long-term commitment. However, it comes with many drawbacks:
- Costs are unpredictable, since they depend on the nature of each issue.
- Waiting for the provider to respond leads to slower resolution and extended downtime.
- You must actively reach out each time you require help, meaning many issues will go unnoticed and unresolved.
- The reactive nature of this model leaves little room for prevention.
Managed IT Services
The managed service model offers ongoing support under a fixed contract. This can include a wide variety of solutions, including monitoring, maintenance, help desk support, patching, security updates, and performance management. Usually, you’re charged a set monthly fee based on the level of support required.
This approach addresses many of the problems inherent to break-fix support. Rather than waiting for you to call them, the MSP works continuously to address potential problems, mitigate risk, and improve efficiency. This means you experience fewer outages and cyber-attacks, enabling stronger continuity. The biggest downside is that you pay the same amount every month, even when you don’t actually require much assistance.
Project-Based Services
These services function similarly to break-fix support, but with a small difference: rather than resolving a specific issue, the provider is contracted to help you with a specific project. This could be anything from a cloud migration to a large-scale infrastructure overhaul.
The project-based model is useful when your business has a clear, short-term objective in mind. However, you will not receive any form of support outside of the agreed upon scope.
How to Choose the Best Fit for Your Business
Now that you understand the three main models for IT service delivery, it’s time to decide which best suits your company’s needs. Consider the following:
Your Internal Capabilities
Your existing IT team, or lack thereof, will be an important deciding factor here. If you already have internal staff, then you can afford a break-fix or project-based model. If not, then managed services may be more appropriate.
Your Growth Plans
Break-fix support may be cost-effective for smaller businesses, but it can quickly become redundant as you scale. Understand your plans for growth in the near future, and how this will impact each engagement model.
Risk and Compliance
Do you experience a particularly high risk of cyber threats, or have especially strict compliance requirements? Either of these could drastically improve the value of managed services, when compared to the other two models.
Get the Guidance You Need to Drive Long-Term Growth
Deciding that you need external IT services is one thing. Choosing the right engagement model is another entirely. But it doesn’t need to be difficult. Keep your business objectives and existing technical expertise in mind, and you can ensure you’re making the best choice for your company.
Would you like to learn more about how outsourcing IT works? We’ve created a vast library of free resources you can use. Get started by reading our ultimate guide to IT consulting: what it is, how it works, and when to sign up.
FAQs
An IT business partner engagement model (also known as an “IT engagement model”) is the means through which you obtain outsourced digital services. It defines the scope, length of engagement, and other crucial factors.
Your engagement model matters because it determines how much support you can receive. Too little, and you’re endangering your business. Too much, and you’re wasting important funds.
The best engagement model will depend on your specific business needs. Whether or not you have internal IT staffing is one of the most important factors: if not, then you should almost always choose managed services.
A single business can definitely utilise more than one engagement model. In fact, this is quite common due to the strategic benefits it can provide. You might use managed services for day-to-day support, and then engage a specialist consultant for major projects.
Break-fix support can certainly be valuable for small businesses with low IT needs, or during an unexpected emergency. But it is limited, and thus full managed services are often the better option.