Ever wonder what the major factors of a Managed IT Services contract should be? Well we’ve listed the top five components of any Managed IT Services agreement and how you should approach them during your vendor selection process. They are as follows
- Remediation Estimates
- Monthly Reoccuring Pricing
- One Time Costs
- Time & Material Pricing for Future Projects
Onboarding costs are those that are charged to a client to bring their environment into the services of the managed it services provider (MSP). These fees may include cost of employee/staff meetings, learning details of the client’s environment, and the one- time costs associated with the client’s set-up within the managed IT services provider’s help desk, password changes, VPN access etc. Simply put, there are one-time costs associated with bringing a client into the MSP’s system, and these are called onboarding costs. These fees can be lowered or even waived depending on length of the managed it services contract being signed.
Remediation costs are those associated with bringing the client’s environment up to minimum standards of the managed IT services provider. Many times IT support is outsourced due to prior mismanagement of IT systems. In other cases, support is outsourced because there are inherent changes and fixes that need to be made to eliminate core problems. These core problems may be related to outdated hardware, operating systems, security, system integrations, and data recovery. Remediation Costs cover the expenses of these initial upgrades to hardware and software that bring the clients environment to a baseline standard for ongoing maintenance by the MSP.
Monthly Recurring Pricing
These are a pre-determined monthly fee for the ongoing management of your IT system and existing users. This fee is based on the type of environment that you are operating, and the number of users in your environment. Among other things, your monthly fee includes response to service desk requests, storage, security, and server maintenance. You may consider this monthly recurring cost as a retainer for services that includes ongoing maintenance for you IT environment.
There will be occasions when there will be a need to add additional users, PC’s or servers to the environment, or when significant changes need to be implemented. These significant changes to the environment will not be covered under the monthly recurring fees, but will be covered under a separate one-time fee, determined by the complexity and hard costs associated with the significant change.
Time & Material Pricing for Future Projects
One of the many benefits of using a managed IT service provider is having a resource that is constantly staying up to date on the latest hardware, software and integration techniques and products to approve efficiencies within you environment. Your MSP can make you aware of these potential upgrades, and provide time and material pricing to make such upgrades to your environment. You then, can make your own cost analysis on the benefits/costs of any major potential upgrades. It is understood that these upgrades are not a part of any of the above listed fees, but a separate and optional projects suggested by the MSP, but are optional to the client.