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Monday, December 26, 2005

Managed Services: Real Profits or Stupid Catch Phrase?

Every once in a while a computer consultant will contact me to ask my opinion about managed services and why our training materials don’t really even touch on managed services.

The answer’s pretty simple… I believe strongly that managed services are NOT meant for the vast majority of computer consulting businesses.

Managed services seek to commoditize or productize value-added services and the entire virtual IT relationship. Because of this, managed services will basically put you into competition with technology providers hundreds, even thousands of miles away from your primary geographic market.

Why is that you ask? Because managed services are the antithesis of face-time-value.

Plus on top of all this, transitioning a computer consulting business to managed services is a VERY radical transformation that involves such pretty substantial time and capital investments… in other words an entirely different business model with its own set of challenges.

Since most computer consulting businesses are undercapitalized to start with, this again makes managed services a poor fit for the typical computer consulting business.

Usually the computer consultants most eager to “buy” into ** thinking ** that managed services are the way to go are the computer consultants that are struggling to keep their calendar filled up with steady, high-paying clients (in other words, they haven’t yet experienced the benefits of the field-tested, PROVEN marketing strategies in the Computer Consulting Kit).

And finally, why is there a “guru” out there espousing that managed services for computer consultants are a better fit than even the miracles of sliced bread and toilet paper?

Real simple, because that “guru” is a really good direct response marketing expert, but has virtually zero experience in owning, growing, and managing a small business computer consulting company.

So yes, my personal opinion, as one of the World’s most respected experts on small business computer consulting, is that managed services aren’t where the real profits are for the typical small business computer consulting firm, as a result represents like more than a stupid catchphrase.