5 Reasons Why Fixed-Cost IT Support Is Better Than Hourly

5 Reasons Why Fixed-Cost IT Support Is Better Than Hourly

Every company should have reliable IT support, especially with the rise in ransomware. Unfortunately, very few SMBs can actually afford to onboard full-time helpdesk support or an experienced IT manager. Therefore, businesses are faced with the decision of paying for on-demand technical support (also known as break/fix) or hiring a technical service provider that offers affordable monthly fixed-cost IT support.

Although paying for technical support strictly when you need it sounds tempting and budget-friendly, it’s actually costlier. Find out why fixed-cost IT support is better for your bottom line.

1) Breaks Are Unpredictable

It is very hard to forecast what your expenditures to fix broken IT systems will be during any given month. Computer and software systems break unexpectedly and failures depend on a bunch of factors, including human error, which cannot be predicted. Hardware failures are even harder to predict due to the very nature of dealing with machines.

Hence, a small business rarely can budget how many hours of IT support services they will need monthly, and therefore budget accordingly. In contrast, a fixed monthly rate provides unlimited technical support and a guaranteed fixed, without hidden or added costs.

2) Fixed Contracts Are Based Upon Proactive Approach

Any reputable managed services or IT support provider wants to minimize its costs and maximize profit. That is why an IT company that offers fixed-cost IT support will be more inclined to manage and maintain your systems proactively. Thus, the support service provider minimizes possible breakdowns and repairs he is paid for and you get less downtime.

Preventive support is always cheaper in the long run. And a fixed-cost monthly contract can provide business sustainability that cannot be achieved through support based on hourly rates.

3) Persistent IT Support Issues

When a service provider is contracted on an hourly basis, it would want to profit from constant hardware and software issues. This is not a good business practice at any rate; nonetheless, it is widespread.

In contrast, a fixed-cost IT support provider does not benefit from fixing your systems all the time because they have specialists on payroll and other business expenditures that are included in the cost of your contract. In theory, they will be more interested to address any breaks as quickly as possible and fix problems in a way that prevents repeated issues.

4) Hidden Costs Might Occur

SMBs can face unexpected expenses outside of a fixed rate contract for IT support. For instance, unless you use a reliable managed service provider, such as Tech Rage IT, computer systems breakdowns tend to happen on Fridays or just before the end of business hours. In this case, you have to pay a premium for rushed IT support outside of working hours or weekends.

Other possible hidden costs are related to overcharging for support. You can be an owner of a small business who is familiar with all the applications you are using daily. But can you calculate properly the cost for support of a particular software or hardware system? Are you able to plan in advance that you’ll need hard disk repair or your RAM memory will go bad? Given that most support providers charge different rates based on the complexity of the issues, you may also end up paying the higher rate for issues that could be resolved within minutes, not hours.

5) Downtimes Are Expensive

Any downtime you experience is double hurting your business operations. First, you incur losses or at least do not accumulate profits, due to a break in your IT systems. Second, you incur expenditures to fix these IT issues. On average, a fixed-cost IT support contract will allow you to avoid paying unplanned double wages in periods of systems’ stoppage, which is exactly what happens in the case of hourly contracts.

A good method to avoid such unbudgeted expenditures and achieve uninterrupted IT operations is to switch to managed services where you pay a fixed monthly fee for the use of the respective service. Since IT operations are becoming business-critical for SMBs, contact Tech Rage IT to explore how we can help lower your IT budget with our Full Managed Services.


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