IT Services Agencies Hiring Guide
Technology-driven digital transformation is constantly raising the standards for business and sales performance and shifting the baseline for success. This makes remaining competitive in the modern economy without proper information technology (IT) support extremely challenging for small to midsize business (SMB) owners. Striving to stay ahead of the curve, SMBs have an ever-increasing need for IT skills, resources, and support.
Getting started with advanced IT technology can be complex and time-consuming, often requiring specialized training. Since most SMBs have limited resources, you can look for experienced IT agencies to achieve your goals in a more consistent and budgeted way. To help SMB owners who are considering hiring an agency, this guide will break down the services provided by IT service agencies, the benefits and costs involved, and how to choose the right agency.
What is an IT services agency?
Information technology (IT) services agencies provide expert support in creating IT solutions that are customized to meet the needs of the client company. While in the past this might have been limited to network management and maintaining hardware infrastructure, there isn’t a business process that isn’t now impacted by IT. For SMBs seeking to enhance or expand their business through the application of technology, IT service agencies provide the necessary support in:
What do IT services agencies do?
Working behind the scenes, IT agencies can be seen as maintaining the digital framework that holds your organization together and provides the infrastructure to support future growth. Acting as a mesh between business processes, IT services can be seen to support their clients in three major spheres: facilitating operations, IT governance, and infrastructure support.
Ensure smooth operations
Because of how embedded technology has become in business-critical processes, business disruptions such as network outages, cyberattacks, and other events that might cause network downtime can be extremely costly. In a 2022 survey, eighty-three percent of ransomware victims reported lost revenue, and 62% reported the loss of clients.* The combined costs of an outage resulting from lost revenue, lost productivity, recovery costs, and potential lost long-term business due to a hit to your reputation can be catastrophic to a small business. The best defense against cyberattacks and unforeseen outages is to have a proactive solution for monitoring the activity across your systems and to ensure the integrity and health of your IT assets.
IT service providers help to monitor your network, manage software licensing, protect and manage your data, and ensure the health of your hardware and infrastructure. This ensures your team has access to the communications tools they need to remain connected to customers as well as collaborate internally across departments. They institute solutions for improving data access and incorporating automation across business processes to improve efficiency, allowing small businesses to accomplish more with less.
Assist in creating and adhering to IT governance policies
Data privacy concerns are driving governments and regulatory agencies to institute protections and standards as to how data and customer information can be stored, accessed, and used. These standards and laws require that access be managed and that certain protections and precautions are built into a company’s IT infrastructure to reduce liability.
IT service providers can support compliance with law and help to establish internal governance policies by creating standards and best practices around the access of information and systems. They focus their efforts on performance management, risk management, and other IT governance requirements to help establish internal guidelines for proper IT usage, which is especially important considering how prominent remote work is across industries. Ultimately, the goal is to add value by mitigating risks, reducing liabilities, and increasing compliance with industry standards and regulatory requirements.
Create and maintain appropriate IT systems and infrastructure
Small businesses and entrepreneur-driven startups are unique in that they are often built from the ground up to provide services or products that solve a very specific business need. Depending on what industry and niche your business operates in, your IT needs might be very different from businesses operating in other industries. Your teams’ expertise might also include knowledge of maintaining and managing certain IT hardware or software platforms, but you might not have the in-house skills to navigate your cloud-based network service provider during an outage.
IT service agencies work with leadership and each department to determine a client’s particular IT needs. They will help to establish and maintain network infrastructure solutions, provide hardware and software maintenance services, manage and oversee communications systems, and oversee any other IT-based functions and tasks. This provides small-business owners with the support they need to remain focused on core business operations.
What are the types of IT services agencies?
While there are several models that IT service agencies follow that are comprehensive, the fact is that agencies providing IT services come in as many varieties as there are IT-based business processes—and oftentimes, businesses look to an IT service provider for limited-scope, one-time projects, or support for a specific project.
We’ve outlined several of the more popular service models, followed by an extensive list of services handled by boutique specialists.
Managed service providers (MSP)
Managed service providers are contracted long-term IT partners that offer ongoing support and management of your IT infrastructure. Services can include, but are not limited to, security management, cloud services, help desk support, and network monitoring. These agencies take a comprehensive approach to overall IT service management.
Managed security service providers (MSSP)
These providers are a specialized IT agency that focus on the security and integrity of your IT infrastructure. Their services include monitoring, threat detection, and incident response, as well as managing system updates and mitigating vulnerabilities in your IT systems. MSSP are especially important partners for businesses operating in heavily regulated industries to mitigate liability.
While there are agencies that specialize in data backup management and disaster recovery services, managed security service providers can also fold these services into their overall security service packages, as data loss and corruption are often an outcome of a cyberattack.
Telecommunications service providers
In order to achieve seamless communication and data capture, many businesses today have transitioned to digital communications solutions to meet their telecom needs, including systems that are able to provide Voice over Internet Protocol (VoIP), internet connectivity, and a managed approach to network management. This approach ensures all hardware and software are communicating and engaged reliably through the internal network or across secure channels when the telecom infrastructure includes remote workers.
Professional services
Professional service agencies are often project-focused and contracted for data migrations, software integrations, software and app development needs, and system implementations. These agencies can work to ensure your existing IT systems and new software solutions work seamlessly and create integrations across multiple platforms and technologies. These agencies can be seen as an extension of businesses who are facing an IT need beyond the expertise of their in-house staff, but have the ability to be self-sufficient otherwise.
Cloud service providers (CSP)
With businesses increasingly relying on cloud-based services for their IT and network infrastructure needs, agencies have emerged to act as a middleman between their clients and the third-party cloud service vendors. They offer management of cloud computing services such as Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), as well as hosting, data storage, and hardware virtualization services. These agencies provide small businesses with cost-efficient, scalable IT solutions that can grow as their clients grow or adapt to changing business needs quickly.
Software development agencies
IT service providers that offer software development services focus on building and maintaining custom applications and solutions that solve specific business challenges for their clients. They use a number of development methodologies to manage software development projects.
Waterfall development is a linear development methodology that has five distinct phases: requirements, design, implementation, verification, maintenance. Waterfall is useful for short-term projects, and usually takes a slower, sequential approach to development.
DevOps methodology requires developers to alternate between “dev” phases (coding, building, testing, and deployment) and “ops” phases (monitoring and ongoing improvement planning). DevOps and the related DevSecOps, which focuses on security best practices, are iterative development methodologies that help developers catch bugs and flaws throughout each phase while still pushing software to market faster.
Rapid application development (RAD) methodology produces high-quality, low-cost deliverables. RAD methodology identifies requirements, uses those requirements to create the user design, and then brings the design to life through a construction phase. Once built, RAD developers then execute a cutover phase that prepares the product for launch.
Agile development encompasses Scrum, extreme programming (XP), and feature-driven development (FDD) software development methodologies. Agile’s iterative approach is designed to minimize risk and flaws in the final deliverable. This allows developers to focus on developing and incorporating new features and functionality.
Professional services and boutique agencies
Beyond the core IT services covered by these types of agencies, there are a multitude of agency models that specialize on niche IT service needs. Here are just a few:
Break/fix IT shops are reactive and provide small-business owners with an affordable repair and maintenance solution.
Remote IT support and help desk service providers provide your team with remote technical support, troubleshooting, and software fixes, with mechanisms to track and escalate trouble tickets.
IT consultant agencies support their clients with expertise in IT infrastructure, software, operations, security, and making critical decisions on technology adoption. They specialize in ensuring strategic IT alignment between business goals and compliance requirements, while maximizing their client’s performance and efficiency through technology.
IT service outsourcing companies often take over one or more of their clients’ IT functions, such as help desk support, application support, infrastructure management, and other long-term needs, as a way for clients to reduce costs and focus on core tasks.
Network service providers design, install, and maintain networks for clients who require a robust internal network infrastructure rather than leaning into cloud-based solutions. This can often be due to security concerns or regulatory requirements, and includes customized networks, as well as the creation of LAN, WAN, and wireless solutions.
What are the benefits of hiring an IT services agency?
Hiring an IT company is often a cost-effective solution that will improve the productivity and security of your company. Hiring an IT company will provide you with many benefits, including the following:
Expertise in IT needs
Technologies are constantly evolving, and it can be difficult to keep abreast of current trends and solutions in order to effectively deploy the right mix of technology for your business needs. Professional IT companies hire qualified individuals from varying tech-inclined backgrounds and ensure they have access to the tools and educational material necessary to remain on the cutting edge of their specializations. They have the skills and experience that most SMBs need to ensure sustainable business operations.
Cost-efficient approach to IT
Recruiting and training an in-house team can be expensive in itself, especially with potentially high turnover rates. There are then the additional costs of acquiring, deploying, and maintaining the infrastructure, hardware, and software solutions to meet your needs initially, as well as the ongoing costs for keeping your IT landscape up to date and functional. Contracting at set rates with third-party IT companies helps eliminate these overhead costs without compromising on results.
Outsourcing your IT needs will allow you to expand your operational limits by leveraging the latest resources and expert guidance. These information technology companies help you achieve goals through strategic resource allocation, freeing up your internal staff to focus on core operations, sales, client relationships, and ultimately drive profitability.
Security, support, and compliance improves reputation and trust
Cybersecurity is a growing concern among SMBs. The challenges of securing organizations that are increasingly field-based or structured around remote-working solutions are such that threat actors have increasingly targeted vulnerabilities in small-business networks. This is exacerbated by small businesses having limited resources to allocate to proper cybersecurity training and awareness. This makes it difficult to stay ahead of the social engineering and employee-focused attacks that are being leveraged by threat actors in data breaches and other types of attacks. You can hire a dedicated IT team to continuously monitor and implement your data and information security policies, saving your company from potential risks.
Provide post-launch support for IT services, software, and applications
In establishing a contracted service arrangement with an IT service provider, there’s often provisions and fees set for ongoing support, maintenance, or management, depending on the services being contracted.
This ensures that your IT infrastructure is supported by professionals familiar with the hardware and software at a technical level. It also guarantees that future growth needs are supported with staff capable of installing additional hardware, making software updates, and other necessary technical support. Post-launch support comes in several forms:
Technical support from a dedicated support team or system administration support. This support is often contracted full time in the first few months following launch or installation to address issues that might arise.
Website support to provide content management and technical maintenance and upgrades to the website.
On-site training or pre-made training videos to support and educate clients and their customers.
Ongoing maintenance and updates based on customer feedback and user experience.
Back-end hosting and support services.
Data management and storage.
Network monitoring for performance and security needs.
Managed services pricing models
The actual costs of hiring IT service agencies depends on the experience level, the scope of work, and the included services, as well as your geographic location and the market. While it is hard to pin down concrete pricing, we can break down the various pricing structures and models you can expect to encounter.
Managed services’ monthly flat rate, all-inclusive
If you’re planning on completely outsourcing your IT business processes and you have a complex enough operation to justify the full managed services experience, plan to pay a monthly all-inclusive fee that covers your operation top to bottom. The flat rate will be negotiated with an account manager that will take your needs into consideration in order to develop an infrastructure plan that accounts for your hardware and software needs. While this model allows for a degree of predictability for the client in terms of monthly costs, it’s not the standard default for many agencies.
Per month, per service
More likely than not, agencies will provide specific services to clients at a contractual sliding fee based on the service and scope, allowing for flexibility and growth, but providing a degree of predictability month-to-month. These fees can be per user, per device, or according to anticipated usage for some services, allow for the costs to adapt to changes in staffing and business requirements.
Per device costs for hardware and networking
A variation on the monthly pricing model, businesses can expect to pay a set amount for each device the service provider is managing on a monthly basis. Pricing in this model often enjoys a bulk discount for deploying larger networks, incentivizing and supporting client growth.
Tiered product pricing packages
Another method of providing value to clients, MSPs will often provide service bundles that are designed to meet the needs of clients at various stages of growth and expansion. As your organization grows and requires more services, pricing will be structured to both give the client the most value and service while maximizing agency profitability.
How to choose the best IT services agency
There are steps your leadership team should follow in identifying the right IT service provider to partner with in order to ensure the best fit for your organization’s technology needs.
Determine your business goals and identify gaps in your existing information technology infrastructure.
Based on those gaps, decide how a partnership with an IT service provider can help you improve efficiency, reduce costs, enhance security, or any other goal you might need to leverage technology in order to accomplish.
Identify agencies that provide the services that address the gaps in your IT infrastructure, such as strategy, infrastructure design and management, or technology deployment, that also have experience in your industry.
Rely on your existing network and peers for referrals to agencies they have worked with successfully. This will help to ensure a culture fit as well as help to speed up the search.
Determine if the agency prioritizes security and stability in the services they offer.
Research your choices to determine their reputation and check reviews from previous customers to learn more about what to expect.
Explore service plans to determine which agencies provide the types of services you need and whether or not they do so packaged within simple and transparent pricing structures.
When choosing an agency, set expectations of transparency and accountability with them by determining how the agency plans to support your goals and objectives, and what KPIs they intend to track to convey success.
How do I know if a service provider is a good fit for me?
With the checklist above, you’ll know that you’re well-aligned with an IT service provider when:
Your IT service provider is proactive and supports your brand rather than reactive and leaves your company vulnerable in the event of a service outage.
The IT service provider can provide clear metrics that are aligned with your goals to show ongoing performance and improvement.
There is transparency, communication, and accountability in the service provider’s reporting in order to make constant improvements on the systems and tools they are managing for your brand to maximize results.
They are partners capable of guaranteeing compliance with regulatory requirements and international standards, preventing your brand from having to pay unnecessary fines and minimizing risk and exposure.
The IT service provider provides services that remain within budget, protecting the increased revenue resulting from efficiency improvements and increased lead generation and conversion rates.
Should I use IT services agencies or IT software?
While some of the services you might turn to an IT service provider for, such as physical infrastructure management, hardware maintenance, and other tangible technological support, there are IT-focused business processes that can be managed and maintained via an IT software solution or service.
Having broken down the benefits of leveraging an IT service provider above, here we are considering the advantages of an in-house IT software solution to manage portions of your IT infrastructure.
IT software and in-house solutions provide improved control over your IT infrastructure. You can take direct control over the tools that you’re going to use, how your staff will be trained, and how best to allocate resources around the solution.
Managing your IT infrastructure through a software solution allows you to align your efforts with your brand culture and objectives.
There are instances when partnering with an IT service provider would mean sacrificing control over your IT budget for the scalability your organization needs. Leveraging software in your internal IT management allows you to determine more effectively when those costs might scale.
Despite how much research and vetting you perform, there’s no guaranteeing the quality of service from an agency. If you have the skills and experience to properly leverage IT management software, you’ll be able to better control the outcome of your efforts.
Whether a small business should be leveraging software to manage portions of their IT infrastructure depends on the level of complexity in operations that the business has achieved. Contracting with an agency becomes a more viable solution when the automation afforded by software solutions no longer effectively supports such basic business processes as:
Team collaboration
Budget management
Progress monitoring
Communications
Information management
When an in-house solution isn’t viable, turn to an agency with the skills, experience, and bandwidth to support your organization. This frees up your team to focus on core operations and provides the most profitable solution to the complexities of IT management.
Methodology
*Capterra's 2022 Ransomware Impacts Survey was conducted in May 2022 among 300 U.S. business leaders that have experienced a ransomware attack. All respondents were part of the response team or made fully aware of the company's response.