What To Do If Your IT Provider Has Been Merged Into a Larger Company

2 May 2023
Get in touch

Share on social..

Over the past few years, there has been an explosion of mergers and acquisitions within the IT service space. Hundreds of smaller IT providers that provide a boutique service to their local businesses of a similar size, have been bought up by larger and more corporate IT providers.


What started this trend?

There are two main reasons why so many smaller IT service providers have been bought out.

The first is because there has been an influx of private equity investment into the space (largely driven by American firms), and the second is because business founders of small providers have decided to sell up.

Medium to large sized IT providers that have taken private equity investment have been given the opportunity to bypass organic growth by buying up smaller IT providers. They can then merge the clientele of the smaller providers with their own and achieve a larger market share at a quicker rate.


But why are so many small IT providers selling up?

The period of 1996 to 2002 saw the establishment of hundreds of IT service providers in the UK. Most of the business founders were in their late 20s at the time. Fast forward a few decades to the 2020s, and now many of these business founders are in their mid-50s and thinking about retirement.

It is completely reasonable for a business founder to accept a generous offer of a merger and/or acquisition for their business which will contribute to their retirement fund after decades of stress and excitement of being an entrepreneur.


What are the consequences for the clients of those small IT service providers?

These mergers and acquisitions have led to a big decline in service quality.

Some examples of the decline in quality service can be seen in the response times in how long it takes for the provider to begin working on a logged ticket. The response time could go from within 30 minutes to start working on an issue to within 24-48 hours! The larger IT provider is probably dealing with a much larger client base than your previous provider, which could lead to slower response times when clients need help or support.

Other examples can include poor communication and inconsistent service. The larger IT provider may not communicate as effectively with clients as the smaller IT provider did. Clients may feel ignored or undervalued and may not be kept up to date on important changes or updates. Additionally, the larger IT provider may not be able to provide the same level of personalised service that the smaller IT provider did, so clients may feel like they are just a number.

The merger may also create a mismatch in service expectations between the size of the organisation that partnered with a smaller IT provider and the larger corporation that has now acquired them. It is highly likely that a small-medium sized business would not have chosen to work with a large corporate IT provider which is why they chose to work with a smaller one in the first place.

The clients of the smaller IT provider that was acquired may now experience ‘getting lost in the system’ amongst this huge client pool they now find themselves in.

The relationship with the IT provider now becomes more transactional.

The reality of a merger and acquisition through private equity investment, is that all investors require a return on investment. This will likely lead to the larger IT provider who has taken investment to become shareholder and profit driven as opposed to service driven.

It’s an unfortunate reality that if your business is in this situation, and the new larger IT provider has many other clients that are bigger than you are, then your business just will not be a priority for them.

We are now beginning to see the consequences of these types of business deals as it is leading to many small-medium sized businesses wanting to change IT providers. Many are wanting to go back to a smaller boutique provider that can give that intimate but excellent service and bring great value to their business.

However, small IT providers that can offer these types of popular services to small-medium sized businesses in their local areas will soon begin to dwindle if they continue to be bought out.


What to do if you are currently in this situation as a business founder:

Firstly, you can start by arranging a meeting with your merger and acquisition manager as the larger company should have one. In the meeting you can discuss IT expectations and whether the new IT provider can match the service of your current provider or discuss any issues that your business has been experiencing since the takeover happened. If the meeting goes well then monitor the service for the next three months to see whether the service expectations are matched or if any improvement are made.

If no improvements are made after three to six months and you know deep down that this is not the right business relationship for you, then it is strongly recommended that you look into switching IT providers.

Your business is the result of all your hard work, grit and determination and it deserves to be protected. Your business deserves an IT provider that will form an equal partnership with you to enable your success and not make your life difficult by providing poor service and inadequate IT functions.

If you are seriously thinking about switching IT providers, then we have written a step-by-step guide detailing exactly what you can expect when you go through the process and how long it is likely to take to complete. Click here to view it.


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

Discuss your business needs today

Get in touch Schedule a call