IT Providers: Strategic Partner vs Reactive Provider

18 April 2023
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In the realm of Information Technology, where regulation is absent, defining the role of an IT Provider becomes subjective. Essentially, an IT Provider is a third-party tasked with remotely managing a customer’s IT infrastructure and devices.

Given the lack of standardisation, choosing an IT Provider that adds optimal value to your business can be challenging.

They often fall into two categories: strategic partners and reactive providers, each distinguished by critical differences, particularly in billing methods.

 

Strategic IT Partner:

A strategic partnership with an IT provider involves a holistic approach to understanding your business, from strategic decisions at the board level to operational intricacies. This collaboration aims to align IT solutions with the broader business strategy, accounting for risk tolerance and current risk management strategies. The partnership model is built on value, and the billing method reflects this – payment is made for both the service and the value delivered.

Strategic IT is suited for businesses recognising IT as a mission-critical investment rather than a mere operational cost.

Benefits:

  • Adds value to the entire business at both strategic and operational levels.
  • Promotes mutual success by assessing business risks and holding you accountable.
  • Transparent advice and reporting.
  • Tailored implementation of a solid IT function to suit your business’s unique needs.
  • High responsiveness to IT issues.
  • The risk and responsibility lie with the partner, not you.

Risks:

  • May be perceived as expensive compared to a reactive provider.
  • May have limited capacity for new business due to personalisation of services for all their clients.

 

Reactive IT Provider:

Reactive providers, often termed ‘break-fix’ providers, focus on fixing IT issues without deeper analysis of how IT complements the broader business strategy. Billing methods typically include time and materials (TMN) or block hours, where you pay for the hours of service or a block of time each month.

Benefits:

  • Potentially ‘cheaper’ than strategic partners.
  • Pay only for the hours you need.
  • May offer better value with a ‘roll-over’ contract.

Risks:

  • Adds little value to the entire business.
  • Places the risk on the client.
  • Lacks incentive to prevent issues.
  • Does not hold clients accountable for decisions.
  • Not proactive in system monitoring.
  • Potential added stress with block hours billing models.

 

Choosing Your Ideal IT Provider:

Understanding the risks and benefits is crucial when choosing an IT provider.

The ‘Riskometer’ chart above emphasises the potential risks involved. With a reactive provider, the risk is shouldered by YOU as the client, whereas a strategic partner takes on the responsibility, having been paid for both value and service.

When comparing the costs of a reactive provider and a strategic partner, avoid getting stung by ‘headline prices.’ While reactive providers may seem cheaper on the surface, hidden costs often emerge in terms of time and money. Contracts should be scrutinised for unexpected charges.

In conclusion, there is no right or wrong choice of IT provider. It’s about defining the type of Business Leader you want to be and the business you aim to build.

Take our quick fire, no email address needed, 2-minute quiz to receive some personalised resources on dependent on your situation to help you to relieve some of your IT frustrations.

Click here to take Are You An IT-Lost Business Leader quiz now!

 

What our customers say

Lumina Technologies have taken the time to understand the requirements of our business and work as our strategic IT partner, enabling us to concentrate on delivering a high quality service to our clients and focus on our growth strategy. They have delivered a 100% cloud solution to our business with no underlying infrastructure costs or maintenance, which gives us scalability for our planned growth. It also means our business critical applications and data are securely accessible from virtually all our user devices. Lumina’s professional approach and strategic expertise is highly valued and their management of our IT – based on their in-depth knowledge, leaves us confident that our systems are available 24×7.

Luke Harrison
Keidan Harrison LLP

Lumina have supported us so well through the difficult circumstances of 2020.  They worked extremely hard to ensure we were able to work remotely and continue to operate our business successfully. The support team are very friendly and knowledgeable, and have excellent response times.

The team have also enhanced our cyber security which is so important in the legal sector, and they continue to provide high quality advice to help us move forward with our IT goals.

Robin Illingworth
Managing Partner, Adams & Remers LLP

The quality of IT Support provided by Lumina Technology is of the highest standard and is complemented by effective client liaison with impressive response times. Trap Oil Group plc has no hesitation in recommending Lumina as a dedicated and specialist group of IT professionals.

Martin David
Technical Director, Trap Oil Group plc

Richard and his team are a real inspiration to anyone who meets them and I have watched Lumina’s growth over the last few years with interest and admiration. Richard has been an amazing supporter of the Hospice of St Francis, being a Gold member of the Corporate Partner Network for almost two years. He takes an active interest in the community and is passionate about his company and his town: nothing is too much trouble, he is always willing to help, to give up his time and to provide business advice when asked. Lumina is an inspiration to any company wanting to set up business in Hertfordshire.

Carolyn Addison
Corporate Fundraising Manager, The Hospice of St Francis

Lumina Technologies Prism Hosted Desktop has allowed our business to centralise our global corporate data, allowing much faster access for all our staff – regardless of their location. We have also been able to simplify and reduce our infrastructure and management overhead. With the new Prism Hosted Desktop solution all staff now have simple and secure access to corporate data using any device they choose. Prism Hosted Desktop has increased the productivity of our staff and given us a single, consistent and familiar experience for all users from any device, in any location, 24/7.

Katherine Roe
Chief Executive Officer, Wentworth Resources PLC

The commercially sensitive and regulated nature of Lambert Energy Advisory’s business requires an IT provider able to maintain the highest levels of integrity and confidentiality, Lumina Technologies has consistently been unimpeachable in this regard over the nine years we have employed them.

Patrick Agar
Lambert Energy Advisory

It has been a great pleasure working with Lumina Technologies over the past two years. They have fully committed to being involved in the local community with volunteering and with professional advice and commitment, helping many local charities along the way. As a growing company it proves that being involved in the local community is helping them attract and retain a talented workforce and I look forward to working with them well into the future.

Cindy Withey
Connect Dacorum

Hawkstone Management Services Ltd is a small company for which IT Outsourcing is realistically the only viable option. Lumina Technologies have successfully performed this role for over fifteen years. They also provide innovative solutions to keep pace with technological progress. I would have no hesitation in recommending Lumina to similar sized businesses.

Stephen Pembury
Hawkstone Management Services Ltd

Charles Douglas Solicitors LLP have been using Lumina Technologies for a number of years now and continue to be impressed by the technical know-how and contemporary knowledge of their senior management, who provide a timely, efficient and friendly service. Whether it is a small issue with one computer, or a strategic IT decision, they maintain a current knowledge of available technologies. Lumina are always at the other end of the phone to help resolve issues and minimise business interference. The technical knowledge of Richard and his senior team means that there has not been a problem that they can’t solve to date. I am sure we will continue to use them in the years to come.

Charles Douglas
Managing Partner, Charles Douglas Solicitors LLP

The team at Lumina Technologies have made the Amoun Travel & Tours office IT transition seamless and problem free. The office set-up has been vastly improved and the IT Support services are flawless. No issue goes unresolved, which is extremely reassuring.

Adam Helmy
Amoun Travel & Tours Ltd

Lumina Technologies has been Salamander Energy plc’s IT provider since start-up in 2005 and has supported us in London during our expansion across operational offices in SE Asia. Their professional approach, strategic advice and close co-operation have been essential in making this a success.

John Bell
Group Technical Director, Salamander Energy plc

Richard and his team at Lumina have provided Perrett Laver Limited with high quality strategic and practical IT Services for over ten years. During this period, Perrett Laver has grown from 10+ colleagues based in London to nearly 100 colleagues located in six offices across the Americas, EMEA and Asia-Pacific. Richard and the Lumina team have not just been responsive to our ‘everyday’ IT needs, but have proactively sought to work with us on developing an infrastructure suitable for the type of operation we are today, and are planning to be months and years down the line. I would not hesitate to recommend Richard, especially for small to medium size business with growth in mind.

Clementine McKinley
COO, Perrett Laver Limited

Society Limited has been supported by Lumina Technologies since our earliest start-up phase. From large logistical challenges like an office move, through to smaller fiddly issues like fixing a faulty e-template, we know we can count on their support and advice. They’ve also been able to engage with us strategically on the challenge of scaling-up our infrastructure as the firm continues to grow and evolve. We always feel confident going to Lumina with a problem, since we know they genuinely care about sorting things out and helping us to get on with our core business.

Simon Lucas
Managing Director, Society Limited

The Vita Group HQ staff have worked with Richard McBarnet and Lumina Technologies for over 9 years, with Lumina providing all our PC, server, phone, and software support. The services have included C-level executives based in London, Manchester, the US, as well as supporting home office IT as well. The service provided and intellectual capabilities are outstanding and we would highly recommend Richard and his Lumina team.

Joe Menendez
CEO, The Vita Group

We worked with Lumina on a GDPR Audit. Richard was knowledgeable and professional throughout, and did the best he could to bring a dry topic to life through lots of real life examples and analogies. We were so impressed with the service Lumina provided and the value we got from partnering with them on this project – we couldn’t recommend them enough.

Holly Cottingham, Vintec Laboratories

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