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The Actual Cost of T&M IT Providers

Many businesses use IT support services to handle the myriad of technology needs within their organizations. These IT providers commonly bill by the hour; known as Time and Materials or T&M.  It’s easy to understand why many organizations have chosen to work with a T&M provider:

  • Pay only for work required
  • Dedicated IT expertise
  • Cost containment

As CEO of Technology Resource Advisors (TRA), my fellow business leaders and I often talk about their technology initiatives. One of the most common frustrations I hear is there seems to be a lack of consistency by IT support providers.

Most IT service providers utilize the T&M business model because it’s easy to add clients.  They go in, do their contracted work, and bill for their time. Without a monthly recurring revenue stream, T&M IT support providers can operate with fewer employees, less internal controls, and lower overhead.

However, the T&M model provides no incentive to solve long-term and urgent client issues. Rapid and emergency response time is limited by available manpower. Process and documentation also suffers because the time required to build sustainable and repeatable models are not accounted for in the rate structure. Costs can rise rapidly, especially when some T&M IT providers start charging for meetings and even research towards finding solutions to your issues.

Many of my fellow businesspeople have experienced escalating and repeated issues with seemingly with no fix because providers do not have the time or resources to research a solution. Frustration mounts over the lack of progress on key technology initiatives. At this point, my colleagues become acutely aware of billing frequency, amount, and lack of progress and consistency.

If this describes your situation, there are alternatives. If you are looking for an IT support provider that delivers consistent and predictable results, look no further. TRA has the experience and the expertise in place to provide, consistent, high level and affordable ongoing IT support. Our clients choose TRA because they can rest easy knowing they are getting the most for their IT dollar.

Please feel free to contact me at 866.501.8671. I would be happy to discuss a program that will work with your needs.

Jason Schmitt / CEO