Why the Break/Fix Model for ServiceNow Services is no longer fit
Break/Fix ServiceNow Services Models No More Fit for The job
Break/fix ServiceNow Services definition: Break/fix ServiceNow Services models are services that are offered and billed on an as-needed basis rather than paying a pre-determined monthly cost for an on-going service.
Break/Fix is declining. The way ServiceNow Platform users manage their platform is changing as a result of digital transformation and new upgrades required for the platform (Rome, San Diego, Tokyo etc.)
More organizations are electing to work with a Pure-play ServiceNow Managed Services Provider; the regularity with which requirements and upgrades emerge continues to challenge the break/fix operating paradigm (MSP).
The projected market growth for Overall MSP market demonstrates rapid disruption, with the business expected to reach $296.38 billion annually by 2023, up from $173.4 billion USD since 2018.
As businesses grapple with the increasing complexity and expanding capabilities of their Now Platform requirements, the traditional break/fix approach is no longer viable, but why?
Many organizations simply lack the resources to keep up with new versions while maintaining and upgrading their apps, workflows and systems due to a limited in-house ServiceNow Expertise.
We at DxSherpa Technologies, have dedicated ServiceNow Consultants and experts who ensure that customers can leverage new features in the Now platform to increase productivity and reduce costs year after year.
Difference between Break/Fix and ServiceNow Managed Services?
Break/fix is, by definition, a reactive approach to ServiceNow Platform maintenance.
External engineers are only called in when a piece of hardware fails or when in-house ServiceNow developers are unable to locate the source of a problem within their system. Once the ServiceNow developer has resolved the problem, the company is billed for their services. This as-needed approach to Platform management necessitates no monthly agreement and, in most cases, no ongoing expenses.
ServiceNow Pure-play MSPs, on the other hand, are proactive and play a significant role in managing the entire platform with ease. MSPs offer their services for a monthly fee based on a Service Level Agreement (SLA).
With the use of remote tools to monitor the Platform and networks as specified in the contract and they respond immediately if any issues arise. Depending on the nature of the company’s ServiceNow Platform Licenses, the contract may include a number of core functions deemed essential to their daily operations.
Issues with Break/Fix Model for ServiceNow Services
Despite the fact that ServiceNow Platform is less complex, in-house teams still require ServiceNow Consultants to configure networks, monitor security, and ensure application up-time. As a result, break/fix models of operation became a popular service method for organizations. You can get whatever you require and then fix any problem.
Rates for ServiceNow Services
With a break/fix service model for ServiceNow Services, companies have no control over their costs and expenditure.
Although this approach may appear to be cost-effective at first, outages as a result of recurring issues or a problem requiring extensive work from a contractor can be a costly exercise. Consider it like not having insurance: it’s great when the sun shines, but when things go wrong, the costs can quickly add up.
If issues take longer to resolve, the department must make sacrifices, and upgrade cycles are prone to stagnation and outages. Because call-outs are their primary source of revenue, break/fix service companies have an incentive to take longer to fix a problem and increase the number of callouts. Because they handle each issue on an individual basis, the callout fees are the only consistent expense the organization is aware of right away, and everything else becomes clear only after receiving the final invoice.
Investment with a Pure-play ServiceNow MSP
The break/fix model discourages service providers from investing.
The service provider’s biggest gains are the company’s biggest network losses, so there’s no reason for a break/fix provider to get engaged with the future growth of the business’ operations. If a break/fix company could provide you with infrastructure that went on forever and never broke, they would be out of business.
The ServiceNow MSP works continuously to ensure network up-time and keep outages to a minimum.
Break/fix ServiceNow Services Providers provide no certainty of the response and repair time i.e. if ServiceNow Consultants are dealing with other clients then, there is no one available and organizations are going to face outages for sure.
If there is a major problem with the network, such as an outage or a breach, a company needs assurances that it will be resolved in a reasonable amount of time.
Benefits of Working with Pure-play ServiceNow Managed Services Provider (MSP)
The break/fix model is clearly no longer appropriate in today’s business environment. In recent years, the Pure-play ServiceNow MSP model has seen tremendous success because it has enabled businesses to collaborate with providers who are actively interested in taking a proactive approach to their IT and its future.
Fixed Cost and SLA
The costs of building an IT system from the ground up continue to be prohibitively expensive but, ServiceNow Platform solves this problem. Aside from platform cost, there are also installations, training, Implementations, Apps and operational management expenses to consider. If an MSP charges a monthly fee for the service, the parties can clearly define and specify the requirements in the contract.
The SLA will detail all accountabilities and responsibilities so that each party is aware of the other’s expectations. This applies to other areas as well, so there are no surprises and the company can regain total control over their IT expenditures, resulting in consistent and predictable budgeting.
Proactive Platform Maintenance and Monitoring
Because the SLA clearly defines the agreement between the ServiceNow MSP and the customer, pro-active monitoring of the Now platform is in the best interests of the MSP. With Impact, for example, the Now platform is monitored 24 hours a day, seven days a week, and any problems are detected immediately. Problems are frequently resolved before the client is aware of them. Unlike the reactive break/fix model, the ServiceNow Pure-play Managed Services Provider will address issues before they become a large-scale operational issue.
A Pure-play MSP model will ensure maximum system up-time and effectively respond to any incident. The distinction between a ServiceNow MSP and a break/fix service is that a quality MSP will commit to an on-site call to resolve your issue within a specified timeframe, which should be included in the contract’s fixed-price terms. In other words, they are not compensated for coming to your aid.
This means that, unlike break/fix services, it is fundamentally in an MSP’s interest to do everything possible to ensure your systems run smoothly and to avoid sending a ServiceNow developer to your workplace unless absolutely necessary. As a result, you have eagle-eyed partners who are on the lookout for any potential issues, no matter how minor, to head off before they become something worse.
DxSherpa Technologies, A pure-play ServiceNow Managed Services Provider who aligns with your Business objectives
MSPs work with you to implement, Integrate, maintain, and upgrade your platform and workflows over time. They collaborate with customers to develop an effective digital transformation strategy and to align their objectives with the company’s operations.
Pure-play ServiceNow MSPs are hubs for all types of ServiceNow developers and consultants. If your CIO identifies an area where a solution could improve your productivity? Implementing a bot, for example, can help you automate your invoices and make them more accurate and timely. Perhaps you’re on the warehouse floor and wish there was a dedicated app that could speed up order fulfillment? Your MSP can also assist you with this by directing you to the right ServiceNow workflow for this development.
Our Motto: Request Assistance as Often as Necessary
In-house ServiceNow teams may struggle to support their platform, especially if the incident management solution receives a flood of tickets. The service management team will process all tickets with an MSP, leaving the onsite team to deal with their day-to-day tasks.
The ServiceNow MSP will have a dedicated team of ServiceNow Consultants to quickly assess and escalate issues as needed, and in most cases, corrective actions can be deployed remotely. An MSP will relieve pressure on in-house teams, allowing them to focus on more strategic initiatives for business operations rather than technology infrastructure.