Businesses rely on IT providers to manage their critical systems, maintain cybersecurity, and ensure seamless IT operations.
However, not all IT providers are created equal. Some face significant challenges when delivering the expected results to their clients. IT providers are meant to be partners driven to help your business grow. So when you hire a provider who fails to meet expectations, it's discouraging and frustrating.
For over 25 years, WEBIT Services has helped hundreds of clients build IT strategies and utilize technology to their advantage.
By reading this article, you will learn eleven reasons some IT providers struggle to deliver results.
11 Reasons IT Providers Struggle to Deliver Results
1. Undercharging for Services
One of the most common pitfalls IT providers fall into is undercharging for their services. This often stems from a lack of understanding of their own costs, leading to pricing that doesn't align with the value they provide.
When companies undercharge, they cannot offer their employees competitive salaries and benefits. As a result, these companies find it challenging to attract and retain top talent.
This, in turn, creates a revolving door of underqualified or culturally misaligned employees. This cycle may also hinder the quality of service delivered to clients.
Moreover, vague invoicing practices can leave clients uncertain about what they get in exchange for their payments. This poor communication leads to dissatisfaction. Sometimes, the unclear payment plans will result in the client seeking a new IT provider.
2. Lack of Framework for Managing Growth
An IT provider's growth is a double-edged sword. Growing too fast without a solid framework can strain existing resources. This can cause service delivery issues for current clients and cash flow problems for the business.
But insufficient growth opportunities can cause technical talent to stagnate. Again, this environment can lead to higher turnover rates.
Striking the right balance is essential. Research shows a 15-35% annual growth rate is optimal. This growth rate provides opportunities for employee advancement while maintaining manageable operations and client satisfaction.
3. Misalignment between Sales & Marketing and Service Capabilities
Some IT providers excel at marketing their services, but their actual service capabilities may not align with the promises made.
The IT provider may not be able to deliver results, or the salesperson may be disconnected from the reality of IT services. As a result, promises are made that cannot be kept.
Client distrust and dissatisfaction can grow from the disconnect between sales promises and service reality.
As a result, clients may go through multiple IT providers. They repeatedly experience the same poor results, eventually losing faith in the managed IT service model.
4. Lack of a Proven Process
Having a well-defined and proven process is crucial in delivering consistent results.
Without an established process, even excellent IT tools lack effectiveness. Tools, employees, and systems cannot perform to their best capabilities without boundaries and processes.
Without an established process, even excellent IT tools lack effectiveness. This can lead to poor outcomes and increased risk for clients.
Additionally, some IT providers fail to follow a standardized security framework. This oversight leaves clients vulnerable to cyber threats.
Regularly measuring the effectiveness of the client-provider relationship is equally important. Established metrics, measurements, and regular meetings can help identify improvement areas and ensure that projects are completed efficiently and on time.
5. Inadequate Measurement and Reporting
To deliver results, IT providers must measure the right metrics accurately.
Relying solely on customer satisfaction (CSAT) scores can be misleading. These scores may not provide a comprehensive view of overall client satisfaction. Other measurable metrics must be set.
For instance, measuring response rates in addition to CSAT scores can give a more accurate representation of client sentiment. Are clients receiving results within an acceptable timeframe and are happy with their service? This presents a more holistic picture of service quality.
Moreover, tracking reactive noise and identifying downward trends can help IT providers proactively address potential issues and improve service delivery.
For example, If metrics reveal a slow response time, what can the provider do to Improve? Are there not enough helpdesk technicians? Are tools or training lacking? Is the ticket system reliable?
By tracking and examining metrics holistically, the IT provider can Identify areas for improvement and deliver better service outcomes.
6. Insufficient Proactivity
Truly proactive IT service involves setting standards and best practices for clients while consistently measuring the outcomes.
Unfortunately, some providers assign proactive resources to reactive tasks, neglecting critical maintenance tasks. This creates a cycle of recurring problems.
For example, Suppose all of a provider's IT technicians are constantly "putting out fires," and solving IT emergencies. In that case, these technicians will have less time to maintain and manage IT systems proactively.
Proactive IT means being aware of your IT systems, risks, and how to mitigate risk. Unfortunately, a reactive approach to IT leaves users experiencing issues that could have been avoided.
Ultimate, proactive IT prevents stress, frustration, decreased productivity, and lost profits. IT risks range from mild inconveniences to a disaster that could destroy a business.
7. Ethical Concerns
The drive for profits should never come at the expense of ethics and morals.
Some IT providers focus solely on maximizing revenue and sales without considering the best interests of their clients. Allowing commissions to drive behavior and selling practices can erode trust and hinder the delivery of genuine results.
This behavior also builds distrust between the provider and the client. If a provider Is constantly trying to upsell unnecessary technology and services, how will a client know If the purchase Is genuinely needed?
Mindful technology investments can move your company forward, increasing productivity and profits. However, poor technology purchases can stress you and unnecessarily stretch your budget. At worst, it costs you more money while holding back your productivity and potential.
A quality IT provider will only recommend purchasing hardware or software that reduces risks, helps you reach your IT goals, and follows your IT roadmap.
8. Lack of Operational Maturity
Smaller IT providers often struggle to attract top talent and may lack repeatable processes due to their early-stage business development. As a result, they may experience unpredictable results and difficulty setting clients up for long-term success.
9. Franchise Model Limitations
For IT providers operating under a franchise model, corporate policies may hinder flexibility in service delivery. They are bound to the rules, processes, and guidelines set by the head of the franchise.
For some providers, this structure provides predictability. All clients receive the same service. However, If a client has unique needs, they might not fit within the franchise model.
Additionally, shared central helpdesks might fail to build strong client relationships. Lacking a client-helpdesk connection may affect the quality of service provided.
10. Misaligned Fit
Like all relationships, not every client is the right fit for every IT provider.
Some providers fail to define an ideal client profile, leading to generic marketing messages and a lack of focus during sales meetings.
A narrow service delivery model, such as a "cloud-only" strategy, can also lead to a mismatch between the provider's offerings and the client's needs.
Before Interviewing potential IT providers, consider what business IT needs you are looking to meet. Do you want cloud-only solutions? Or do you want a provider who will service on-premises servers? Are you looking for a more responsive helpdesk or a platform-agnostic provider? Or are you looking for a provider who specializes in a single platform?
11. Client-Contributed Challenges
In some cases, IT providers may struggle to deliver results due to client-contributed challenges.
These challenges can range from outdated technology that hampers efficient support to clients not trusting their providers and constantly seeking second opinions. Such circumstances can significantly impact the relationship between the provider and the client.
For example, If a client has a server that Is ten years old, that server will be unreliable. It may be unable to handle new system or security updates, Increasing security risks. It may also repeatedly crash, causing lost data and productivity.
The server Is failing because It is far beyond the end of Its useful lifespan. The IT provider may recommend a replacement server to restore reliability and reduce risk. If the client refuses to buy a new server, they create risk and lose productivity for themselves and their provider.
If the IT partnership Is fraught with these kinds of disagreements and disconnects, It Is not a successful partnership for either party. In such cases, the IT provider may dissolve the partnership.
Next Steps to Find a Provider Who Meets Expectations
Several factors contribute to why some IT providers struggle to deliver results. While the issues may vary across individual providers, reasons for poor service may stem from the following:
- Undercharging for services.
- A lack of framework for managing growth.
- Misalignment between sales, marketing, and service capabilities.
- Lack of a proven process.
- Inadequate measurement and reporting.
- Insufficient proactivity.
- Ethical concerns.
- Lack of operational maturity.
- The limitations of a franchise model.
- A poor fit between provider and client.
- Client-contributed challenges.
These challenges can hinder the provider's ability to deliver effective solutions to their clients.
Addressing these issues through clear pricing structures, defined growth frameworks, aligned sales and marketing, and an ethical focus will help IT providers enhance their service delivery.
If you feel your provider fits several or all of these descriptions, It may be time to look for a new IT provider who can meet your needs.
For over 25 years, WEBIT Services has helped hundreds of clients build successful IT strategies and processes while utilizing effective technology.
If you are looking for a new IT provider, schedule a free 30-minute consultation to see how WEBIT can help.
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