A service contract is essentially a way to streamline your firm's IT support, as it takes a long-term, strategic approach. Providing an alternative to the traditional "fire-fighting" model, a service contract anticipates and accommodates variable demand for IT support, and details to the parties a pre-agreed method of satisfying it. Support work is inevitably required; however purchasing it through a contract is cheaper, more efficient, and obtains a better quality of service.
Two types of contract are available:
Contract 1: Monthly Rolling
Contract 2: Fixed Price/Fixed Term
The benefits of a service contract are many. A formal agreement provides the customer and the supplier a mutual understanding of duties and entitlements. A clearly defined response time permits service requests to be prioritised, and gives the customer recourse, should delay occur, while a fixed monthly fee results in predictable, infrequent invoices and payments. In contrast, an ad-hoc approach requires each task be approved individually, invoiced individually and paid individually. This increases administrative costs for everybody, whilst restricting the avenues from which tasks can be approached.
A service contract also has a direct positive effect on your bottom line. A smooth, well-tended computer system produces both immediate and sustained cost savings.
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