IT Service Contracts Pose Big Question for Smaller Companies - Break-Fix Model Is Unprofitable (
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According to Robert Crabb, director of marketing at the Geeks On Call, while
it's true that most of his company's clients are have 20 employees or fewer, "because
they usually don't have a full-time IT person," most of those companies
actually contract with Geeks On Call for tech support.
"We can't rely on break-fix work if we want to be profitable,"
Crabb said.
Geeks On Call also ventures into larger organizations—especially those with
small branch offices. One of the company's newest clients is Long & Foster
Real Estate, a nationwide network of hundreds of small real estate offices.
Even if a company chooses to sign a contract with a larger MSP (managed
services provider), it may end up with a smaller break-fix company anyway, said
Charles Weaver, president of MSPAlliance, an association for the managed
services industry.
"If you have a problem where somebody needs to
physically look at something and your MSP isn't available, they will often
contract with a more local tech company," Weaver explained. "They
come under the auspices of the MSP's control, and only do what they are
authorized to do. It's a fairly typical scenario."
