Why Have IT Contracts?

I came across a website recently that decried contracts for IT services claiming that they were all written in the interests of the IT provider and out to get small business owners.

Here are three reasons you want to look for companies that not only have, but require, well-written contracts. #2 and #3 are items you should look for in any business contract you sign.

1. They Have Insurance

I can’t stress how important this is to you. Your IT company’s insurance protects you as a client as well, especially if you ever have to bring a claim against them. Any decent insurance in the IT industry requires that the underwritten maintain contracts. No contracts are a sign that they don’t carry proper insurance which leaves you as a business owner holding the bag if things go south.

2. You Lock in Rates

The costs for IT technicians and the costs for companies to carry insurance is only going one direction, up. Contracts allow you to lock in rates at today’s prices instead of tomorrow’s. Without a contract, your IT provider is free to change prices whenever they want.

3. The Contract Protects You

A well-written contract has language in it to protect your business with clauses like:

1. Mutual non-disclosure agreements
2. Non-compete agreements
3. Agreements not to hire each other’s employees
4. Specific processes for working out issues, if they arise, including court jurisdiction. (i.e., specifying a local court, instead of one in Texas or Deleware even if that is where the business is legally incorporated)

Given that your IT provider has access to nearly 100% of your data is responsible for keeping you secure I can’t imagine a reason you wouldn’t want to sign a well-written contract that protects your interests.

Call us today and we’ll walk you through the ways we protect our customers, but digitally and legally. 865-240-2716