IT service companies deliver technology-specific solutions through implementation projects or complete outsourcing.
Any business disruption to operational systems (ticketing, management and monitoring tools, and the specific technology under management) causes the business to miss KPIs on which they can be fined. But most of all, the company loses its reputation.
Low-quality implementation could cause customers to be more vulnerable to disruption. Disruption directly impacts the reputation of the company and the chance of any future projects.
Implementation projects & reselling
Most service providers struggle to gain more recurring revenue by selling contracts. Instead, they are often heavily dependent on the projects and reselling, which is a volatile source of income. Some months you might sell a lot but lack the resources to complete the projects. Other times, you sell almost nothing and your resource pool will be sitting idle.
Labor market situation
The labor market for IT experts is difficult. Getting techies and keeping them is nowadays a challenge. A shortage of IT tech experts risks the organization, affecting organizational competence, growth, revenue, and service capacity.
Loss of partners
Technology partners know that delivering services is a vast market. Resulting in the risk that technology partners choose to build their own service portfolio and make it harder (or impossible) for service partners to deliver their services.
Issues with technology partners
Issues that technology partners could have a direct impact on the success of projects and operational management. The company will lose its reputation even though the company has little influence on the quality of the technology partners deliver