Why Price Isn’t the Only Factor for Defense Contractors
One of the most common questions that companies, particularly defense contractors, ask when seeking IT services is, "What do you charge for IT support?" While price is undeniably important, it shouldn’t be the sole factor in selecting the right IT service provider—especially when dealing with CMMC 2.0 compliance and cybersecurity risks.
The challenge many executives face is not knowing what to ask or what to look for when evaluating an IT services company. This often results in an overemphasis on cost, which can lead to problems later on. In this article, we’ll explore why the cheapest option isn’t always the best and what defense contractors, like those striving for CMMC 2.0 compliance, should consider when selecting an IT service provider.
The Risks of Choosing an Underpriced IT Provider
While everyone loves a bargain, choosing an underpriced IT provider could end up being a costly mistake, particularly for companies handling sensitive government data. According to Service Leadership, nearly half of managed services providers (MSPs) in the IT industry have a net profit under 10%, and 28% of MSPs are unprofitable. This could spell trouble for businesses needing strong IT support to maintain compliance with CMMC 2.0.
Here’s why choosing a cheaper IT provider could leave your business at risk:
- Inadequate Staffing
Cheaper IT companies often don’t have the resources to maintain sufficient staffing levels. This can lead to slower response times, which puts your business at risk for cyber threats, including those that could compromise CMMC 2.0 compliance. - Less Experienced Technicians
Hiring less expensive technicians can result in lower-quality service. When managing critical operations like cybersecurity and compliance, it’s crucial to have skilled experts who understand the complexity of the defense industry’s IT needs. - Financial Instability
IT providers that underprice their services are at greater risk of going out of business. A sudden closure could leave your company without essential IT support, scrambling to find a replacement, and potentially failing compliance audits during that downtime. - Poor Operational Maturity
Operational maturity refers to a provider’s ability to maintain high standards through skilled staff and well-established processes. Providers with low operational maturity may be cutting corners, particularly in cybersecurity and compliance measures—critical aspects for defense contractors dealing with CMMC 2.0.
What Should Defense Contractors Pay for Managed IT Services?
According to Service Leadership, the average per-user fee for managed IT services ranges from $205.07 to $249.73 for companies with a high level of operational maturity. For those that are underperforming, the range drops to $146.08 to $157.49 per user.
If a provider quotes significantly below these figures—say, $120 per user—it’s worth asking how they can offer such low prices. In most cases, they are cutting corners, hiring less experienced technicians, or failing to provide comprehensive security and compliance services.
For defense contractors, compromising on IT services could result in failure to meet CMMC 2.0 standards, which puts government contracts and sensitive data at risk.
What to Look for in an IT Provider for CMMC 2.0 Compliance
Choosing the right IT services provider is about more than just finding the lowest price. Here are key factors to consider, especially for defense contractors focused on CMMC 2.0 compliance:
- Operational Maturity
Look for IT companies with high operational maturity. This ensures they have the skilled staff, processes, and infrastructure necessary to provide high-quality service and cybersecurity support, keeping your business compliant with CMMC 2.0. - Dedicated Account Managers
A strong IT services provider will assign a dedicated account manager to your business, ensuring you receive personalized attention and strategic planning tailored to your unique needs. - Comprehensive Cybersecurity Measures
Your IT provider should offer a range of cybersecurity services, including threat monitoring, regular system updates, and compliance-focused solutions. For defense contractors, this means adhering to CMMC 2.0 standards and ensuring that sensitive data is properly protected. - Financial Stability
Partnering with a financially stable IT provider reduces the risk of service disruptions, ensuring you have continuous support to maintain both security and compliance. - Clear and Transparent Pricing
Make sure your provider is upfront about costs. Hidden fees or ambiguous contracts can lead to unexpected expenses, which could negatively impact your bottom line.
Make an Informed Decision
Defense contractors, especially those focused on CMMC 2.0 compliance, must be careful when choosing an IT services provider. While it’s tempting to go with the cheapest option, underpricing often leads to inadequate support, lower-quality service, and an increased risk of non-compliance. It’s important to partner with an IT provider that understands your specific needs, offers operational maturity, and provides comprehensive cybersecurity services.
If you’re looking for more insights into what to ask an IT provider, click here to download our free executive guide, "21 Critical Questions Your IT Consultant Should Be Able To Say 'Yes' To." This guide will help you make an informed choice, avoid costly mistakes, and ensure you’re getting the support your business needs to stay compliant and secure.
