Large companies have their own technology staffs, but what if you’re a small business under 100 employees with technology needs that can be just as critical to your business? Understanding your business information needs (and their criticality) is paramount to your technology strategy—a major factor when you make decisions like whether to hire your own IT staff, or outsource your technology support.
By Mary E. Shacklett
Published: March, 2006
Large companies have their own technology staffs, but what if you’re a small business under 100 employees with technology needs that can be just as critical to your business? Understanding your business information needs (and their criticality) is paramount to your technology strategy—a major factor when you make decisions like whether to hire your own IT staff, or outsource your technology support.
Rightsizing a technology plan
Two types of small companies opt to use internal employees for technology support. They are at the opposite ends of the spectrum:
• Companies with little or no resources and expertise in IT support that make do with whatever knowledge their existing employees have; and
• Companies that recognize they will not be a commercial success without excellent technology, and make the decision to employ highly skilled IT professionals who are dedicated to their operations.
Companies between these extremes are beginning to consider outsourcing technology support because of the outsourcing options now available.
Tech outsourcing options
Consumer-oriented stores like Circuit City and Best Buy have recognized the small business market, and are expanding programs that serve it. Small business programs in these stores are built around multi-year contracts that provide 24/7 technical support for computer hardware and networks.
For example, with Circuit City’s City Advantage program, if a business purchases six desktop computers it is charged between $130-140 per station as a one-time upfront contract fee. The contract is in force for two years, and if the company chooses to exit the contract, the remainder of the monthly contract payments is returned as a prorated amount to the business without penalty. The business also has the option of entering into a longer-termn contract that further discounts computer technical support fees.
Although consumer stores offer hardware technical support only, programs like these give small businesses cost-effective, round-the-clocke support for hardware failures and trouble-shooting. Some of the disadvantages are lack of software technical support, limited training options, lack of an equipment leasing program and little help or assistance in computer and network security.
The neighborhood computer store is another alternative for small companies. The neighborhood store does not typically offer 24/7 service, but offers the opportunity for a pay-as-you-go hardware repair service. Many times these smaller stores can respond quickly to a problem situation. However, like other small businesses, these smaller, privately owned computer stores can be limited by their own internal resources. Sometimes, companies may have to wait a little longer for technical support and problem resolution.
The technology programs of major PC equipment manufacturers, like Dell, HP, CDW and Gateway, offer small businesses discount purchasing and technical support programs. All are reputable companies with their own core competencies and areas of expertise.
Smaller networking companies supporting specific vertical markets in a number of industries have formed associations or consortiums that offer discounted technology purchase prices at group rates, as well as affordable technical support. This is especially prevalent in sectors like banking, hospitality, healthcare and small government.
Finding an effective strategy
Regardless of how a small business addresses its technology needs, there are five best practices that contribute to a great network servicing and support program:
1. Determine how mission-critical your technology is to your business. If your technology is a critical component of your end business, and you can’t afford to be without it, you need strong technical support. Conversely, if your business is able to function several days without your technology, you might consider an affordable, but less service-intensive, mode of technical support.
2. Consider leasing instead of buying your computer and network equipment. Companies you lease from typically track technology developments, and can assist you in keeping up with current trends as you upgrade equipment on lease. You can expense lease costs, and can thereby avoid having to depreciate an asset that will obsolete itself in three years. Leasing arrangements also assure immediate replacement of technology that fails—with the lessor assuming all servicing and replacement costs. All you worry about is the monthly cost of the lease.
3. Look for an industry buying group or network service provider. If you belong to an industry with a trade association, the trade association often offers buying programs that give you better technology purchasing (and possibly even lease) options. If you are looking for servicing, a number of vertical sectors also have network providers with both specialized technology and industry knowledge. This combination is often a best of breed combination for a small business. You get the technology know-how at a discount price and do not have to take on payroll; at the same time, you have a service provider that understands your end business and the specific technology demands it has.
4. Ask the vendor about performance guarantees, before entering into a contract for technology services. Also, it is important to ask how quickly the vendor promises to respond to your trouble call, and how quickly the vendor pledges to resolve problems. At the same time ask your vendor about service levels, and about its business partnerships. Many vendors have business partners that can supply other technology needs, or disaster recovery services.
5. Check a prospective service provider’s references, and take the time to interview them. Customer references are excellent sources of inside information, and can be instrumental in helping you with your decision.
Mary E. Shacklett is President of Transworld Data, a marketing and technology practice specializing in marketing, public relations and product management for technology companies and organizations. Mary is listed in Who’s Who Worldwide and Who’s Who in the Computer Industry. She may be reached at TWD_Transworld@msn.com or (360) 956-9536.
