CoreConnex has conducted extensive research into the needs and requirements of senior business managers and small business owners. The purpose of this research is to get a better understanding of how small business make decisions to outsource various aspects of their business.

It is interesting to know that many companies make the decision to outsource technical service when a crises occurs. That’s when they cannot avoid seeing the problem.

But from an IT service providers point of view, being the rescuer is usually not a good basis for a long term relationship. And short term relationships just make it necessary to do lots more selling and investment in building new relationships.

Our research shows that the biggest profits come from longer term relationships where the relationship is about the IT service company functioning as a manager of resources and serving as part of the customer’s team.  This is like comparing a salaried employee with an hourly employee. Usually the salaried employee is a trusted part of the team and has an area of responsibility. Whereas an hourly employee tends to make less money and generally do the work given them by their managers.

Clearly the most valuable relationships come when the service provider is viewed more as a peer to the customer’s management team and when they have a responsibility making some aspect of their customer’s business operate very dependably…. And includes planning, managing and making corrective actions. Includes trusted advisor concept.

Key Financial Concepts

• Profit
• Equity
• Owner Compensation
• Investment and ROI
• Critical Goals
• Benchmarks
• Leading Performance Indicators

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CoreConnex specializes in professional services automation (PSA) software for VARs, MSPs, channel distribution partners, IT service providers and other professional service companies. We encourage you to share experiences and perspectives as players in this professional community. This blog is moderated. Comments that are unprofessional or derogatory will not be posted.