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In the past three-five years, the IT landscape in the UK has experienced a surge of buyouts. Many founders of smaller, local IT providers, approaching retirement, have accepted generous offers for their businesses. This trend has allowed a handful of IT providers to grow through buying the client base of smaller providers, rather than organically.
Please see our blog post: What To Do If Your IT Provider Has Been Merged Into a Larger Company for more information about this.
Who to Partner With: Smaller Local vs Larger Corporate IT Providers:
Choosing between a smaller, more local IT provider, and a larger, more corporate based one is a significant decision for any managing director. Each option has its pros and cons, depending on your business type and your expectations from the partnership.
Working with a Larger, More Corporate IT Provider:
Larger IT providers, often driven by shareholder expectations, may come with several downsides:
These issues arise because larger providers focus on managing a broad client base, often prioritising shareholder and profit over service delivery.
Potential Pros:
Benefits of Partnering with a Smaller, More Local IT Provider:
In the current trend of IT provider buyouts, a personalised service has become a sought-after luxury, rather than a standard expectation.
In our experience as a smaller, strategic IT provider working with small businesses of up to 50 people, we understand that directors often prefer to work with businesses of a similar size to them.
Here’s why partnering with a smaller, local IT provider can be beneficial, especially for small businesses:
Conclusion:
There is no definitive answer to who you should work with.
It ultimately depends on the type of relationship you seek with a technology partner. IT is critical to business operations and strategic growth and is especially important regarding cybersecurity protection.
Consider whether you want a transactional, reactive relationship with a larger provider or a strategic, personalised partnership with a smaller, more local provider.