When bigger is not better
Over the past few years, there has been a roll-up going on in the IT services industry.
Managed Service Providers are being bought and sold like hotcakes.
Clients are being sold to the highest bidder.
Surely, this is not what you signed up for?
Sometimes bigger is better.
An extra large soda at McDonald’s for $1.
Your South Florida businesses IT support contract being sold to a company in Chicago.
Well, not so much.
Doesn’t being nationwide give me more depth and breadth?
The answer as always is…
Yes, nationwide companies will likely have more dollars to spend on more skilled engineers and technicians.
The problem is this…
Your small business will likely never speak to one of those depth and breadth engineers.
The last mile.
The problem with any nationwide provider is what we refer to as...
The last mile challenge.
Large companies centralize services to gain economies of scale.
But end-user support.
People helping people.
Is the last mile challenge.
And still, the buy and sell continues…
Big service companies and investment bankers are buying up Managed Service Providers in hopes of making some money.
But making money on delivering services is an uphill climb.
There are challenges to overcome with service delivery.
Businesses need to be integrated.
Processes need to be taught.
People need to respond.
And all the while.
All that your small business wants.
Is someone to call them back.
Someone to help them with their tech problems.
Someone to come onsite and fix something when needed.
As a small business—you need a local provider.
Heck, in most cases your business is a local provider.
You work in a community for a community.
Like buys from like.
Sure bigger sounds better sometimes.
And sometimes bigger is better.
But not always.
If your IT service company sells out.
Make sure you don’t get sold out to.