How IT Service Providers Should Respond To Economic Downturn?
Eventually, economic downturn will happen and this could have an effect on IT service providers. During moments of economic uncertainty, companies traditionally are a bit more careful in choosing things that they need to spend on. Often, some projects need to be put on hold and IT providers will have to tighten their belts and weather the storm. As a result, it is important for us to identify this situation and shape our value proposition to make our offers looks more interesting even in challenging times.
Successful IT providers are able to shape their pricing, deliverables and messages in such a way that clients see them as an appropriate cost-saving measure in a difficult economic situation. Clients should also be able to mitigate any risk in their business and consistently increase their productivity and efficiency. Therefore, they will gain higher net profits. This will allow both IT providers and clients to have a better shot at weathering any economic downturn themselves.
In reality, things are more profitable for IT service providers if their clients are experience pains from improper IT implementations. There could be unforeseen events, such as disaster and outages that need to be handled very quickly. This allows IT providers to react immediately and try to solve the problems. Then, it is possible to bill clients higher for any emergency response rate. Our clients will be compelled to spend money for such a reactive emergency; due to much higher operational risks if their IT solutions don’t work properly.
Unfortunately, this is also the reason why many clients think about IT service providers less positively. It is a good idea for them to be more proactive, to make relationships with IT service providers much better. There is actually a possibility that we will get steady stream income if our clients experience the least pain from our IT solutions. They will consider that our products and services are impressive and it is a good idea to hire us for a longer period of time.
Good IT providers proactively maintain and manage their environments. This will result in higher profits, productivity and efficiencies. We should integrate technology and tools, by ensuring highly efficient procedures and processes. With proper implementations, it is possible to remotely manage and monitor clients. Higher net profits will be achieved if clients agree to perform higher utilizations. Business goals of IT providers should be aligned perfectly with their clients. IT providers can become the most profitable if clients also have profitable business operations.
As a conclusion, it is important to properly shape our value propositions, messages, and deliverables. These factors will help us to deal with any negative factors of economic downturn. These positive things will also counteract any impact of inappropriate spending decisions that business owners have done in the past. Clients will need to tighten their belts during a difficult situation and a good solution from IT service providers will give them a chance to “hunker down”, at least until the financial hurricane blows over.