Breaking Free: Why Your Business Should Avoid IT Service Contracts

As a business owner, there are a few pitfalls to avoid when it comes to choosing the right IT service. The most important one to avoid is signing a term contract with an IT provider.

A term agreement may seem like an easy way to ‘set it and forget it’, but there are multiple factors that a contract can lead to an unmanageable experience – and even become a costly mistake, especially when it comes to managed IT service.

The Basics in a Nutshell

Different IT services offer different levels of commitment: From cancel-anytime all the way to 5-year contracts!

The IT services that opt for a cancel-anytime approach will typically offer you a service agreement or a proposal that includes scope of services. Both of these outline the services they will provide for your business.

However, some services require signed term contracts which places you under an obligation for a set period of time, e.g. “A 3-year contract.” 

You may already avoid this, but with IT services there is a unique reason you’ll want to do so.

The Incentive for Good Work

First, if the service provider is not reliable or does not meet your needs as your business changes, you could be stuck with them.

Consider the incentive for a contract-based IT service.

Yes, it’s possible that a term contract IT service can still do good work, but the incentives are not in your favor. The IT service is incentivized to fulfill the language of the contract— nothing more — not your changing needs or happiness as a customer.

You Can’t Predict Technology 3 years from Now

Every business changes, grows, shifts directions, adds/removes services, and more. How can you determine if an IT service can support a new direction or technology you need to implement 2 years down the road? You can’t. 

This can not only be frustrating, but can even impact your business negatively, especially in the case that the service is ill-equipped to handle changes in your business.

Keep the Ball in Your Court

A contract may include terms and conditions that aren’t favorable to you, such as high fees or strict cancellation policies. 

Avoiding a term agreement makes an IT service earn your business and incentivizes them to evolve and adapt to your business’s technical needs and the evolving support your employees need.

The Solution

Believe it or not, IT service can be an enjoyable addition to your business. Finding an adaptive, reliable, and caring service is all a client really needs to continue with a service.

In our opinion, this makes work more enjoyable for everyone involved—the IT service included.

By avoiding a term contract, you’re much more likely to find an IT service that honors this experience. And it grants you the freedom to cancel anytime.