Selecting a Technology Service Provider: Why Experience Matters
When evaluating technology service providers, there are a number of important factors to consider. Among the most critical of these considerations is the depth and quality of experience the provider and its team members possess. While young start-up IT companies may present seemingly comparable solutions, it is crucial to consider the trade-offs associated with trusting your firm’s IT infrastructure to a less established provider.
Advantages of Working with Experienced Providers
Well-established outsourced IT firms typically boast a more seasoned and reputable management team than young, inexperienced companies. These individuals are more familiar with the nuances of the industry and are in a better position to understand your firm’s unique business needs. Equally as important, having an experienced management team typically helps a provider attract, develop and retain the best and brightest technical staff, including highly skilled engineers and analysts.
In addition to having a top quality team, established providers are much more likely to have a greater depth of staff available to service their clients. Look for a company that can provide a dedicated project manager and an accompanying team that is responsible for ensuring that your firm’s projects and initiatives are designed, managed and implemented to meet your exact requirements.
Another advantage of working with an established technology service provider is that they have extensive client and partner networks already in place. This means that your firm will likely have the opportunity to speak with peer organizations that are working with the provider to understand their experiences and the benefits of using that provider’s solutions and services. Additionally, with vast partner networks in place, established IT organizations are able to leverage best-of-breed technologies from leading vendors to benefit their clientele.
Disadvantages of Working with Inexperienced Providers
At start-up IT companies, it is common for management to adopt overly aggressive pricing strategies aimed solely at undercutting competitive offerings. While low pricing might initially seem appealing, there are certainly some significant trade-offs involved. By slashing prices on solutions and services, young firms are forced to sacrifice value in the technologies they provide to clients in order to maintain margins. If not, they will be unable to operate profitably, which leads to financial instability and can be extremely risky for the clients who rely on them.
Start-up IT firms are also more likely to agree to terms within client deals that a more established firm would not accept. With much less to lose, these small, new companies are willing to take much greater risks in order to win new business. Larger, more established organizations do not need to win every contract in order to survive as a business, thereby putting them in a better position to thoroughly review all client deals for the benefit of both parties before reaching a mutually beneficial agreement.