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Episode 5: What are "services"?

  • Writer: Embedded IT
    Embedded IT
  • Sep 26, 2024
  • 2 min read

Updated: 3 days ago


Understanding IT services and how they support your technology


Technology procurement often focuses on hardware and software, but these only deliver value when supported by the right expertise. Services provide the specialist skills needed to install, configure, secure, and maintain technology so it works effectively for an organisation. This guide breaks down the difference between project services and ongoing managed services, how each type supports technology, and what to consider when buying them.


What technology services actually are


When most people think about technology, they focus on hardware and software. But these don’t deliver value unless someone knows how to configure, implement, secure, and maintain them. Services fill that gap.


Services are essentially the purchase of specialist time and expertise. Their purpose is to make technology useful, effective, and aligned with real business needs.


There are two main categories:


  • Project services: upfront work needed to get technology working.

  • Ongoing services (managed services): ongoing support to keep technology running.


Understanding project services


Project services cover everything involved in getting technology ready for use. The discussion highlights that these range from simple to highly technical tasks.


At the basic end are activities like delivery, installation, or shipping. More complex project services include:


  • Configuring hardware and software

  • Installing systems

  • Securing devices and software

  • Designing and testing solutions


These tasks require specialist skills linked to the specific technology being used. Relying on only one technology supplier can limit the hardware and software options available. Refreshing the supplier list helps ensure the right skills are available for the right solution.


Choosing the right commercial model


The video breaks down two common approaches when buying project services:


  • Time and materials: useful when the requirements or outcomes aren’t fully clear.

  • Fixed price, fixed outcome: helpful when the required result is well-defined and clarity is needed on cost and deliverables.


Fixed-price models bring contractual clarity but may include supplier contingencies and dependencies that need reviewing carefully.


What ongoing or managed services involve


Ongoing services keep technology running day to day. These are usually long-term agreements, often three to five years, and are built around monthly charges.


Examples include:


  • Regular maintenance and updates

  • Security patching

  • Hardware and software upkeep

  • Help desk support for users


Cultural fit and trust are important when selecting a long-term services partner. The relationship matters just as much as the technical capability.


What to consider when buying managed services


The discussion outlines several key considerations:


  • Cost structure: understand pricing, indexation, and any inflationary adjustments.

  • Quality levels: look for clear SLAs, KPIs, and meaningful penalties for missed performance.

  • Contract clarity: ensure the agreement explains how service quality will be measured and maintained.


Managed services can be complex, so understanding the terms and knowing what to look out for is crucial.


If you’d like advice on choosing the right IT services or building a more effective service strategy for your organisation, get in touch.


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