Guide · Selection

Choosing an IT service provider: how to recognise a good one

We are writing this article as a provider – you should know that as you read it. Even so, we have written it so that you can use it against us. Anyone who sets out criteria has to meet them. The criteria apply anywhere – if you are looking in Cologne and the Rhineland, you will also find at the end of this article what to look for in a local provider.

By Dipl.-Ing. Mohamed Khater, Founder and Managing Director, since 1992 · · 9 min read

First the type, then the provider

There are three types of IT service provider

Before you compare individual companies, it is worth taking a step back: which type suits your business at all? The three usual forms differ less in price than in what happens when something unusual or something big comes up.

  • The one-person business or freelancer. Inexpensive, quick, often technically excellent – and exactly one person. As long as nothing happens, this is the most economical solution. During holidays, illness, a change of focus or a project that ties them up for two weeks, there is no cover. For businesses that can cope with a day of downtime, it can still be the right choice.
  • The IT systems house. Several people, several areas of expertise, cover for absences, tools for monitoring and documentation. More expensive than an individual, but resilient. The question you need to ask here is not about size but about responsibility: do you get named contact persons, or someone new every time?
  • The purely remote provider. Nationwide, often inexpensive, exclusively remote. This works well for environments that are entirely in the cloud. As soon as there is hardware, a network, printers or a phone system on your premises, the part that nobody can handle over a line is missing.

A note on our own behalf: we are an IT systems house. If your business has eight workstations, everything is in Microsoft 365 and there is no server, we are probably not the cheapest answer – and we will say so in the initial consultation.

Verifiable, not claimed

Seven criteria you can actually check

Availability, experience and personal service appear on every website. The following seven points, by contrast, can be asked about in a conversation – and the answer is either concrete or evasive.

1. Who actually answers the phone?

Do not ask about availability; ask who is on the line the third time you call. A front-line service that logs tickets is something different from someone who knows your environment. Both are legitimate – you just need to know what you are getting.

  • Ticket desk or technician?
  • Named contact persons?
  • How often do they change?

2. Response time – in writing and tiered

“We will get back to you quickly” is not a commitment. A reliable commitment states a time limit, differentiates by urgency and says when the clock starts: when the report is received, or at the start of business hours the next day.

  • Tiered by urgency
  • Start of the clock defined
  • In the contract, not the brochure

3. Who owns the access credentials?

The administrator password for your server, your firewall and your Microsoft account belongs to you. A provider who will not hand it over, or finds the question awkward, is building a dependency that you will pay dearly for later.

  • Agree on secure deposit
  • Keep your own administrator account
  • Domain in your name

4. Is there documentation – and do you get it?

Ask for an example of system documentation, anonymised if need be. If there is none, the knowledge about your systems sits in one person's head. That is convenient until that person is on holiday, ill or has left.

  • Ask to see an example
  • Are updates to it arranged?
  • Handed over when the contract ends

5. Cover and breadth

No single person masters firewall, database, phone system and Microsoft 365 all at the same level. Ask who specialises in what, and who steps in when that person is unavailable.

  • Who covers for whom?
  • Which topics are outsourced?
  • How many people in total?

6. Distance – and what follows from it

Being close by is not an end in itself. It only matters when hardware needs replacing or a fault can only be seen in front of the device. Do the maths: how long does the journey take, and what does an hour of downtime cost you?

  • Travel time, not kilometres
  • Spare parts in stock?
  • Flat rate or travel charge per call-out?

7. Proof of work done

What actually happened last month? A provider who invoices monthly should also be able to show monthly which issues were reported, what was done and what state backup, updates and security are in.

  • Regular report
  • Review meeting agreed
  • Backup demonstrably checked

Caution

Six warning signs you should take seriously

None of them rules a provider out on its own. If three of them come together, you should get a second quote.

  • The question about access credentials gets an evasive answer. This is the clearest sign. Anyone who wants to make switching difficult starts here.
  • There is no documentation. Or it consists of one file that was last changed three years ago. With every incident, things that should already be known are then worked out again – at your expense.
  • Invoices without proof of work. Items such as “IT services, time and materials” with no date, task or duration can neither be checked nor disputed.
  • Everything depends on one person. Likeable, but a risk. At the first meeting, ask who steps in if that person is unavailable for two weeks.
  • The contract does not cover how it ends. Notice period, handover of data and documentation, cooperation in the handover: if these are missing, you will be negotiating them at the very moment you are in the weakest negotiating position.
  • Every recommendation leads to a product from the same manufacturer. Vendor partnerships are normal and sensible. It becomes noticeable when no alternative is ever considered and the justification is always the same.

Before you sign

Five points that belong in the contract

These points cost nothing in the negotiation and save a great deal later. A provider who agrees to them without hesitation has probably already arranged things this way anyway.

PointWhat it should containWhy
Scope of servicesA list of what is included – and explicitly of what is not: licences, storage space for backups, manufacturer maintenance, projects.The most common reason for disputes over the first invoice.
Response timeTime limits by urgency level, with a defined start and the hours during which they apply.Without tiers, every report is treated the same – or none is.
Access credentialsYour own administrator account remains in place; passwords are deposited or handed over on request. Domains and cloud accounts are registered in your name.Prevents switching from becoming technically impossible.
DocumentationIt is maintained, kept up to date and remains your property. Handed over in readable form no later than the end of the contract.Without it, every successor starts from scratch – and charges for it.
End of contractNotice period, cooperation in the handover to a successor and the handover of all data, including backups.Settle it now, not when there is a dispute.
This list is a recommendation based on practical experience and does not replace legal advice. The legal review of a contract is a matter for a lawyer.

Approach

A selection process that leads to a decision in two to four weeks

It should not take longer than that. If you compare for three months, in the end you are comparing memories.

  1. Write down your requirements

    Two pages are enough: number of workstations and servers, locations, business applications, what regularly goes wrong today and what an outage costs you per hour. Without that last figure, there is no sensible way to choose a response time.

  2. Approach three providers

    More than three rarely leads to a better decision; fewer than two never leads to a comparison. Give them all the same two pages – otherwise you will get three quotes for three different things.

  3. Allow an assessment

    A reliable quote can only be made after someone has seen the environment. Anyone who quotes a fixed price without an assessment has built in a safety margin – or will ask for more later.

  4. Make the quotes comparable

    Compare the content, not the bottom line. The comparison sheet with twelve questions asks the same questions of every quote and makes the differences visible.

  5. Follow up and decide

    Talk to a client of similar size named by the provider – and do not ask them whether they are satisfied; ask about the last major incident. How it was handled tells you more than any reference list.

Switching

What actually happens when you switch IT service provider

Worry about switching is the most common reason businesses stay with a provider they are unhappy with. In practice, switching is less dramatic than feared – provided the access credentials and the documentation are available.

The usual process: assessment and takeover of the documentation, setting up monitoring and remote support, handover of access, a limited period of parallel operation, and only then termination at the next possible date. Day-to-day operations do not stop in the meantime.

It only gets tricky in two places: if the previous provider does not cooperate, and if domains, certificates or cloud accounts are registered in their name instead of yours. Both can be resolved, but it takes time. So before you give notice, check who your domain is registered to.

  • Take over first, then give notice. Not the other way round.
  • Check the notice period beforehand. Three months to the end of the year is common.
  • Check domain and cloud accounts. They should be registered in your name.

Frequently asked questions

What we are often asked about this

Should we ask about certifications?

Yes, but with a sense of proportion. Vendor certifications show that someone has learned a product – not that they understand your environment. It is more telling to ask who in the company specialises in what, and how often knowledge is refreshed.

If you work in a regulated sector, it is the other way round: then evidence of ISO 27001 or TISAX can be a genuine exclusion criterion, because your own customers require it.

How many quotes should we obtain?

Three. With two you have no yardstick; from four onwards the quotes start to blur in your memory – and the effort for the assessments is out of all proportion.

Is a large provider safer than a small one?

Size protects against individual people being unavailable, not against poor service. The typical drawback of large providers for SMEs is anonymity: you are a small customer among many and speak to someone different with every incident.

The typical drawback of small providers is the lack of cover. The question is not “large or small” but which of the two risks your business would cope with less well.

Our current provider is cheap but hard to reach. Is it worth switching?

Work it out instead of going by feel. For one month, note how often you waited for an answer and how long someone was unable to work as a result. Multiplied by an hourly rate, that gives you a figure you can set against the price difference.

The result is often clear – one way or the other.

Why do you publish criteria you are measured against yourselves?

Because we meet them. Our clients have their access credentials, their systems are documented, and the response times are in the contract. A client who stays because they technically cannot switch is the worse relationship for both sides.

Dipl.-Ing. Mohamed Khater

Dipl.-Ing. Mohamed Khater founded INFONET Computer GmbH in Cologne in 1992 and still runs it as its owner. The points in this article come from taking over environments that someone else looked after before – and from the cases in which the handover did not work.

Further reading

Second opinion

You have a quote and are unsure?

Send it to us. We will tell you what is missing and what is unusual – even if the answer is: take it. Free of charge, and without it turning into a conversation about us.

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