In recent years, many large managed IT support providers have been acquired by even larger brands. New Signature, a leader in cloud transformation, was acquired by Cognizant in 2020. Ntiva, a brand offering IT services, was purchased by PSP Partners in 2022. And that’s only two technology companies that have been acquired in the past few years. These deals aren’t making headlines around the world, but companies that partnered with acquired IT providers are certainly noticing a change in their own backyard – and rarely for good.
Disruption is causing chaos for many of these recently acquired brands’ customers, and companies are having to look for new solutions to ensure they have a managed IT support team that has their back.
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Disruption Is a Common Consequence of Mergers and Acquisitions
2022 alone saw 513 technology buyouts. And IT spending was predicted to hit $4.6 trillion in 2023 – a 5.1% increase year over year. IT brands are being bought out and swallowed up by larger brands, and it’s really not good news for their existing customers.
When two companies merge, or one is acquired by another brand, transformation and disruption go hand in hand. And when your business has partnered with one of these IT services, it’s easy to notice the changes.
M&A cause technology companies to transform. They can see growth, expand into new markets, and offer enhanced product offerings. However, disruption is not far behind. Customers, as a result of this transformation, will often see increased costs, misaligned product strategies, and disrupted services.
And IT Disruption Is Far From “Trendy”
Market disruption is a buzzword we often see in the news, and at first glance, it can be seen as a fun or trendy type of disruption, especially with so many buyouts still occurring in the industry. But for those companies’ partners, disruption is far from fun. It’s scary and can actually be a nightmare for those customers that are lost in the shuffle. Common issues these clients have to face include:
Conflicting Motives and Objectives
Businesses are unique and can have different values, motives, and objectives. When one brand acquires another, it’s unlikely that their goals and values align perfectly, if at all. Customers may suddenly find themselves with an IT services provider that simply doesn’t fit their own needs as a result. Conflicting motives also lead to difficult customer relationships and can affect the service level agreements. Will the new company still have the managed cloud services your brand needs? Or will they offer the Office 365 licensing that you depend upon?
High Turnover and Lack of Support
M&A often affects the employees and solutions, too. As the purchasing company determines what pieces go where, employees may be shuffled around (or simply laid off) and offered solutions can be adjusted. These changes directly impact customers. Where there was once consistent managed IT support, there may now be long wait times, inefficient results, and simply lack of any quality assistance. This significant drop in meeting service expectations can erode customer confidence.
Profits Over Customers
Buyouts often lead to organizations focusing more on their balance sheets rather than their customers’ needs and requirements. Partners could find their managed IT services provider is no longer offering the necessary support they need, customer relationships go out the window, and tickets go unanswered for long periods of time – if they’re answered at all. As the service quality falls, so does customer satisfaction.
New Contracts
M&A will usually lead to new contracts, and customers need to know what they’re agreeing to before signing. Services and support can change drastically during this transformation, and clients don’t want to be stuck in a contract they can’t get out of until it expires. With lack of a personal touch, personal relationships can be nonexistent, and all businesses will have left is a signed piece of paper.
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Managed IT Support From Nortec Can Steer You Clear From Disruption
With a personal touch, consultative approach, and ongoing stability, Nortec is here to help businesses with IT solutions. Your projects and operations can benefit directly from a trusted team and values that always place the customer first. When you work with Nortec, you’re not just hiring a managed IT support team, you’re getting a partner who is invested in your business and your success.
Nortec works to become a part of your team by offering managed IT services that support your company’s goals, needs, requirements, and budget. In addition, we offer a holistic approach to cybersecurity that is woven into your operations and IT support so you can rest assured your brand is protected when you need protection the most. If you’re in NYC and unhappy with your current provider, we’re here to help. Working with Pace Public Relations, we were able to take their IT solutions and communications to new heights.
We understand the disruption that goes along with mergers and acquisitions. Just because your original partner was bought out, doesn’t mean you have to stay with a service that simply isn’t meeting your brand’s needs. Nortec is here to help you reduce the friction and frustration that comes with your IT and get you back to work.
Reclaim control over your technology – book your free consultation with Nortec now!