Skip links

How IT Support Companies Charge For Their Services – Part 1 Of 2

How IT Support Companies Charge For Their Services – Part 1 Of 2

When navigating the realm of IT services, it’s crucial to decipher the pricing and service models to make informed decisions. Understanding the two predominant approaches—Time and Materials (Hourly, often known as “break-fix”) and Managed IT Services (MSP)—can guide your selection process.

Time And Materials (Hourly) – “Break-Fix Services”:

Overview: This model operates on an hourly pricing structure, where IT services are sought to fix issues as they arise rather than proactively maintaining systems. Scope of Work: From resolving specific problems like slow WiFi or email issues to more extensive projects such as software upgrades or office moves, the range can vary. Value-Added Reseller Services (VARs): VARs typically undertake IT projects for organizations with internal IT departments. They not only resell hardware and software but also provide installation, setup, and configuration services. However, a trend shift toward managed IT services is notable.

Managed IT Services (MSP):

Overview: In the MSP model, the IT services company serves as your fully outsourced IT department, managing all aspects of your IT infrastructure. Comprehensive Services Include:

  • Troubleshooting IT problems (help desk support)
  • Setting up and supporting various devices for employees
  • Installing applications like Microsoft 365, Google Workspace, SharePoint, etc.
  • Managing network security to combat hackers, ransomware, and viruses
  • Data backup and recovery assistance in case of disasters
  • Providing help desk and support for employees
  • Setting up and supporting the phone system
  • Continuous monitoring and maintenance of network health, speed, and security

Additional MSP Benefits:

  • Strategic IT roadmaps and budgeting for essential projects
  • Ensuring compliance with data protection laws (HIPAA, FTC Safeguards, PCI, etc.)
  • Aligning cyber protections with standards set by cyber insurance plans

Pros and Cons of Break-Fix Services:

Advantage: Payment only for IT support when needed, no monthly or multiyear contract commitments. Ideal for microbusinesses with simple IT needs and minimal issues.


  1. Potential High Costs: Multiple issues can lead to higher expenses due to extended troubleshooting.
  2. Hourly Incentives: Paying hourly may encourage providers to assign junior technicians, potentially extending resolution times.
  3. Increased Risk: Businesses are more likely to encounter major issues without preventive measures.
  4. Budgetary Challenges: Difficulty in budgeting for IT services, and emergency support can incur additional costs.
  5. Lower Priority: Break-fix clients may not receive priority attention, leading to extended downtime.

Ready to move beyond ongoing IT challenges? Contact us for responsive, quality IT support provided by knowledgeable, US-based techs, ensuring effective and hassle-free solutions for your business needs. Embrace a proactive IT approach and bid farewell to persistent issues and ineffective systems.

Schedule your free initial consultation with one of our senior advisors by calling us at 301-202-6521 or going to

On this call we can discuss your unique situation and any concerns you have and, of course, answer any questions you have about our services and how we might be able to help you. We are also happy to provide you with a competitive bid.

Join the Discussion