In the world of tech support, the traditional break-fix model, where companies charge per hour, still persists. This model, however, raises significant concerns about incentives. If an IT firm is compensated per hour, what motivation do they have to proactively prevent issues? With current technology capable of monitoring every aspect of your network, PCs, routers, and more, the question becomes even more pressing: why fix problems before they cause downtime if you get paid more when things go wrong?
The Incentive Problem
The core issue here is one of the incentives. In a break-fix model, IT companies benefit financially from problems and downtime. This creates a conflict of interest, as there’s little incentive to prevent issues that would reduce billable hours. Proactive monitoring and maintenance could resolve many problems before they escalate, but under an hourly billing system, this isn’t always in the provider’s best interest.
The McDonald’s Ice Cream Machine Parallel
This situation is strikingly similar to the notorious case of McDonald’s ice cream machines. These machines were found to be overly complicated, preventing local franchise owners from performing repairs. It was discovered that the machines were designed in such a way that they frequently broke down, necessitating repair calls. The firm contracted to handle these machines had a significant financial incentive to keep them breaking, as they profited from each visit.
The Solution: Managed Agreements
To avoid the pitfalls of the break-fix model, businesses should consider flat fee managed agreements. These agreements align the incentives of the IT provider with those of the client. When IT firms are paid a flat fee, their goal shifts to maintaining optimal system performance and minimizing downtime. This proactive approach ensures that issues are addressed before they cause significant disruptions, ultimately saving businesses time and money.
A Lesson from McDonald’s
The McDonald’s ice cream machine saga culminated in a lawsuit, allowing franchise owners to repair their own machines. This case highlights the importance of aligning incentives to ensure that providers act in the best interest of their clients. By choosing managed agreements over hourly billing, businesses can avoid unnecessary downtime and escalating costs, ensuring a more reliable and efficient IT infrastructure.
In conclusion, the break-fix model of hourly IT support and the McDonald’s ice cream machine debacle both underscore the critical role of incentives. To truly benefit from modern technology and avoid costly downtime, businesses in San Antonio should opt for managed agreements that promote proactive maintenance and align the interests of both parties.