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The high costs of renewing your vendor IT Support contract

02 March 2017

There’s an alternative to OEM IT support, and guess what: It can save you quite a bit.

The renewal and administration of IT support contracts is a staple part of business network management, and for many organisations, this is achieved by simply renewing with the original equipment manufacturer (OEM) once a warranty period has ended. However, renewing IT support contracts with the OEM normally results in organisations paying far more than if they moved to a suitable third-party support maintainer.

A support contract is effectively an insurance policy, and like any insurance provider, it’s normally best to shop around at the end of your coverage in order to see if you can save money. Bearing this in mind, if you can achieve the same level of service for less with third party technical support, rethinking your renewals process might be in both you and your company’s best interests. After all, money saved on IT support can be reinvested elsewhere within your infrastructure.

Why are third party maintainers cheaper?

The reason it’s cheaper to use a third party maintainer for your IT support contracts is ultimately down to the motivation for offering support. Vendor costs are typically high because it’s in their best financial interest to persuade customers to purchase newer models rather than sweat existing assets. Because of this, a vendor may charge £400-600 per year for support on a part that would cost £3000 to replace with a faster or higher capacity version outright. At a certain point, it becomes a viable option for the customer to simply buy the newer model - or at least that’s what the OEM wants you to think.

A third party maintainer on the other hand is offering support with the primary purpose of providing support-as-a-service at a competitive rate. Because of this, the price is a lot lower, and in the example highlighted here, could therefore offer support on the part for as low as £50 per annum, rather than £500.

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You'll also benefit from valuable time savings.

Using a third party maintainer such as Prodec Networks can also reduce costs associated with time spent managing support contracts. Complex IT infrastructures typically incorporate hardware and software from multiple vendors. Managing various support contracts from a number of different vendors, each with their own processes, systems and contacts is time-consuming and extremely inefficient.

In contrast, amalgamating your IT support contracts under a third party maintainer can mean you only have to deal with one contact and one process for all of your support and maintenance requirements. The best IT support providers can also manage OEM warranty contracts for you too. The greatest benefit of this process is that it frees up your time-strained and expensive in-house IT team, allowing them to work on more interesting and perhaps more critical projects.

Is the quality of service the same?

Third-party IT support contracts work in exactly the same way as OEM support models, but often offer additional advantages on top of cost savings, such as increased contract flexibility and the ability to customise SLAs that benefit both customer and supplier alike. By typically dealing with smaller firms, you’re also more likely to gain improved customer service and faster response times too.

It’s worth mentioning at this point that taking some time researching viable third party IT support providers is vital. If you’re considering making the move away from vendor IT support, it’s important that you select a suitable supplier that has financial stability, and can provide a level of service that matches the OEM’s.

For further reading on this matter, check out our blog “5 questions to ask when selecting your new IT support provider”.

Who is Prodec Networks?

With millions of pounds of hardware and software supported by Prodec in companies across the UK and beyond, Prodec Networks is one of the UK’s leading providers of third-party technical support. Strong vendor partnerships and experienced technical engineers allow for excellent levels of service across a wide range of technologies.

Find out more about Prodec's end of warranty support services here

Post-Warranty Support Services

Prodec's end-of-warranty support offers major savings when compared to vendors.

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